BresaGen Q4 results show dwindling cash reserves

Adelaide-based company BresaGen only has enough cash to last until December, according to figures released by the company today.

According to its fourth-quarter results, the company's cash balance as of June 30 was AUD$5.86 million. Net cash flow for the quarter was $1.097 million, compared to a total of $10.288 million for the whole year, and the reduction compared to previous quarters was primarily attributable to the completion of the new facility and a decrease in R&D payments after completion of the US-based imaging research.

BresaGen recently purchased key protein manufacturing technology from US company Restoragen. It is also pursuing legal action against the Institute of Medical and Veterinary Science, Medvet Sciences and Prof Angel Lopez in relation to the failed anti cancer drug E21R.

But negotiations to acquire critical rights to US company Plurion's stem cell technology hit a hurdle in April, sending the two companies back to the table.

In a statement, BresaGen CFO Linton Burns said the company's cash flows were in line with forecasts.

He noted that a US investment banker had been engaged to raise finance to exploit opportunities in protein manufacturing, and that further plans to raise funds would be made public once finalised. Burns was unavailable for comment on today's results.

Biotechnology analyst David Blake commented that he was disappointed with the announcement.

"I would have expected a more fulsome announcement to the market, given their cash position has them insolvent in five months," he said.

BresaGen's share price (ASX: BGN) was trading lower after the announcement. At the time of writing it was down nearly seven per cent to AUD$0.28.