Algorae’s AI Drug Discovery Progress Hinges on Upcoming Validation Results

AI-Driven Discovery Delivers New Oncology Targets

Algorae Pharmaceuticals (ASX: 1AI) has marked a productive quarter with its proprietary AI drug discovery platform, AlgoraeOS, identifying 24 novel drug targets focused on high-impact oncology indications including breast cancer, leukemia, and glioblastoma. Since its launch in September 2024, the platform has demonstrated its potential to uncover promising therapeutic avenues, with the company now finalising a formal research collaboration with a leading Australian institution to commence preclinical validation studies. This step is pivotal in translating AI predictions into tangible drug candidates.

Advancing AlgoraeOS Version 2.0

Development of AlgoraeOS Version 2.0 is progressing rapidly, incorporating expanded data integration and advanced machine learning enhancements. These upgrades are expected to improve predictive precision and broaden the platform's applicability beyond oncology to multiple disease classes. Notably, the platform aims to generate novel, patentable fixed-dose combination therapies, potentially accelerating the drug development pipeline and enhancing intellectual property value.

Therapeutic Pipeline Shows Encouraging Preclinical Data

Algorae's therapeutic candidates continue to advance, with AI-116, a combination drug for dementia, outperforming the current first-line treatment Donepezil in vitro by significantly improving neuronal cell viability. A Patent Cooperation Treaty (PCT) application has been filed, and clinical trial planning is underway, signaling readiness to move towards human studies. Similarly, AI-168, targeting cardiovascular diseases, demonstrated cardioprotective effects exceeding beta blockers in multiple cell models. Collaborative efforts with Monash University are ongoing to evaluate in vivo efficacy, aiming at a global beta blocker market estimated at US$6.2 billion annually.

Strengthening Commercial Leadership

In a strategic move to enhance commercial execution, Algorae appointed Vishal Shah as Chief Commercial Officer in April 2025. With over 20 years of experience in pharmaceuticals and healthcare distribution, including senior roles at HPS Pharmacies and Baxter Healthcare, Shah's expertise is expected to be instrumental as Algorae prepares for commercial functions and partnership development. Additionally, Dr. Sarah Siggins continues to provide strategic scientific and commercial guidance on the Scientific Advisory Board, leveraging her experience from Johnson & Johnson and Bristol-Myers Squibb.

Financial Position Supports Ongoing Development

Algorae reported a cash balance of $2.59 million as of 31 March 2025, bolstered by a $428,454 R&D Tax Incentive rebate. The company achieved a positive net operating cash inflow of $179,815 for the quarter, reflecting disciplined expenditure with $147,703 allocated to R&D and $67,499 paid to directors and related parties. This solid financial footing provides confidence in the company’s ability to fund near-term R&D and commercial milestones without immediate need for additional capital.

Overall, Algorae’s quarterly update underscores the tangible progress of its AI-driven drug discovery platform and therapeutic pipeline, alongside strategic leadership enhancements and a stable financial base. The upcoming preclinical validation results and clinical trial initiations will be critical indicators of the company’s trajectory towards commercialisation.