Avecho Biotechnology (AVE) H2 2024 earnings summary

Executive summary

• Achieved major milestone with commencement of Phase III clinical trial for TPM-enhanced CBD capsule targeting insomnia; first patient dosed in May 2024.

• Entered landmark licensing and development agreement with Sandoz AG in March 2025 for exclusive Australian rights to CBD capsule, with US$3M upfront, up to US$16M milestones, and 14-19% royalties.

• Revenue increased 139% year-over-year to $1.13M, mainly from higher Vital-ET sales; net loss after tax reduced to $3.12M from $3.44M in 2023.

• R&D tax incentive income rose to $1.64M, supporting ongoing clinical development.

• Cash and cash equivalents at year-end were $2.37M, down from $5.5M in 2023.

Financial highlights

• Revenue: $1,132,672 for 2024, up from $473,551 in 2023 (139% increase).

• Net loss after tax: $3,122,048, improved from $3,436,561 in 2023.

• Gross profit: $671,926, compared to a gross loss of $43,795 in 2023.

• R&D expenses: $3,591,156, up from $2,117,263, reflecting increased clinical activity.

• Net operating cash outflow: $3,968,718, higher than $3,179,955 in 2023.

Outlook and guidance

• Recruitment for Phase III trial to accelerate in 2025 with broadened eligibility and additional sites.

• Sandoz partnership expected to provide upfront and milestone payments, supporting future funding.

• Additional financing will be required to fund ongoing R&D and operations.