Inhalerx Faces Funding Challenge Beyond $38.5M Facility as Operating Costs Persist
Inhalerx Limited tapped $247,000 from a $38.5 million funding facility to support its clinical trials, while reporting a $310,000 cash burn in operating activities for the September quarter.
- Drawdown of $247,000 from $38.5 million clinical trial funding facility
- Operating cash outflow of $310,000 for the quarter
- Cash and cash equivalents at $170,000 at quarter-end
- Unused financing facility balance of $38.236 million
- Payments to related parties include director fees and key management salaries
Funding Clinical Progress
Inhalerx Limited has reported its quarterly cash flow for the period ending 30 September 2025, revealing a continued investment in its drug development programs. The company drew down $247,000 from a substantial $38.5 million funding facility provided by Clendon Biotech Capital. This facility is earmarked specifically to cover clinical trial costs, including non-clinical work and drug manufacturing, for its IRX-211 and IRX-616a candidates through to the completion of Phase 2 trials.
Cash Flow and Operational Spend
The quarter saw Inhalerx record a net cash outflow of $310,000 from operating activities, reflecting ongoing expenditures in research and development, manufacturing, and corporate overheads. Despite this cash burn, the company ended the quarter with $170,000 in cash and cash equivalents. The sizeable unused portion of the funding facility, $38.236 million, provides a significant buffer, translating to an estimated 124 quarters of funding at the current burn rate, underscoring a strong runway for clinical development.
Corporate Governance and Related Party Payments
Payments to related parties during the quarter included $15,000 in salaries to key management personnel, $19,000 in director fees to Sean Williams, and $8,000 to former director James Barrie. These payments are consistent with standard governance practices and reflect ongoing remuneration commitments.
Strategic Outlook
While the funding facility covers clinical trial expenses, Inhalerx has indicated plans to raise additional capital to support corporate and other overhead costs. This suggests a strategic approach to managing operational liquidity while advancing its clinical pipeline. Investors will be watching closely for updates on trial progress and any forthcoming capital raises that could impact the company’s financial position and share price.
Bottom Line?
Inhalerx’s strong funding position supports its clinical ambitions, but upcoming capital raises will be critical to sustaining broader operations.
Questions in the middle?
- What are the expected timelines and milestones for the Phase 2 trials of IRX-211 and IRX-616a?
- How does Inhalerx plan to finance corporate overheads beyond the clinical trial funding facility?
- What impact might future capital raises have on shareholder dilution and company valuation?
