iX Biopharma has narrowed its loss for the year ended June 30 by 22% to $8.2 million, thanks to better gross margins and higher sales of $1.7 million, up 77% over the preceding FY2020.
The company’s top-line was boosted by robust demand for its nutraceutical products and WaferiX-based product development services from pharmaceutical companies in China.
The company was able to achieve this even though there were periods of border closures in Australia during the financial year, which impeded its plans to expand its manufacturing capacity and led to constraints on its production capacity.
The demand in China grew thanks to careful spent on marketing which helped drive awareness and interest.
On the back of the overall higher level of business activity, its gross loss narrowed by 35% to $0.4 million for FY2021 and its gross loss margin was slashed to 22% from 60% in FY2020.
In 2HFY2021, the company has installed new equipment that has boosted its wafer production capacity by up to six times.
In this past year, the company has undertaken other market development activities such as signing distribution contracts with partners in Brazil and New Zealand, and is working to introduce the product to other markets including the USA and UK.
It is also gearing up to boost its presence on China’s ecommerce platforms so as to drive sales via this avenue.
In an indication of support from investors, its $9.6 million rights issue in July 2021 was 196.2% subscribed.
Proceeds raised from this fund-raising exercise will be used to reinforce its balance sheet in preparation for future growth.
iX Biopharma shares closed Aug 23 at 24 cents, up 2.17% for the day and down 2.08% year to date.