Calzada narrows FY13 loss by 45%

Calzada (ASX:CZD) narrowed its losses for FY13 by 45% to $1.5 million, thanks chiefly to a higher R&D tax incentive credit.

The company recorded an R&D tax benefit of nearly $1.6 million for the year, compared to $677,000 in FY12.

But operating revenue declined 66.4% to $278,500, in a result blamed largely on lower licensing revenue at the end of a feasibility study by an interested licensee, as well as reduced material sales from biomaterials subsidiary PolyNovo.

During the financial year, PolyNovo completed its first human clinical trial of its NovoSorb polymer wound dressing in topical negative pressure procedures.

The company also commenced a trial of NovoSorb BTM (biodegradable temporising matrix) in free-flap donor site repair surgery. The final patient in this trial was treated in July.

PolyNovo plans to prepare a US regulatory submission for NovoSorb in TNP over the next 6-12 months and complete the trial of NovoSorb dressings in full thickness wounds.

Fellow Calzada unit Metabolic meanwhile conducted an animal study of AOD9604, a treatment candidate with potential applications in obesity, bone, cartilage and muscle diseases and repair.

Calzada noted in its annual report that Metabolic will spend the next six months focusing on finding licensing or partnership arrangements for AOD9604. After this period, Calzada will decide whether to continue supporting Metabolic, or to separate it into a separate entity.

Calzada (ASX:CZD) shares were trading 1.16% higher at $0.087 as of around 2.30 pm on Wednesday.