Cambium Bio Secures $3M Funding Boost to Propel Phase 3 Trials

Financial Boost from R&D Incentive and Strategic Placement

Cambium Bio Limited, a clinical-stage regenerative medicine company, has reported a solid financial update for the quarter ending 31 December 2025. The company received a $0.6 million R&D Tax Incentive refund for FY2025, a significant non-dilutive funding source that supports its ongoing pivotal Phase 3 clinical program. This refund follows government approval of the company's Advance Overseas Finding, which covers the entire Phase 3 program through 2027 and offers a 43.5% cash rebate on eligible R&D expenses.

Adding to this, Cambium Bio announced a $2.4 million strategic placement from its major shareholder, Zheng Yang Biomedical Technology Co., Ltd. (ZYBT), at a 20% premium to the market price. This placement, subject to shareholder approval in March 2026, is intended to fund the initiation of patient dosing in the upcoming Phase 3 trials. Post-issue, ZYBT’s stake would increase from 28.1% to 39.6%, underscoring its commitment to the company’s clinical progress.

Advancing Phase 3 Trials and Manufacturing

The company is actively preparing for its pivotal Phase 3 trials of Elate Ocular®, its lead biologic candidate targeting dry eye disease. Manufacturing of the investigational drug product is underway under GMP conditions, and Cambium Bio is collaborating with a Contract Research Organisation to expedite study preparations. The first patient dosing is targeted for the second quarter of calendar year 2026, with topline data expected in the second half of 2027.

Regulatory milestones remain intact, including FDA Fast Track designation and approvals from ethics committees in Australia and the United States, positioning the company well for rapid trial commencement.

Licensing and Strategic Partnerships Progress

Cambium Bio is advancing licensing discussions for Elate Ocular® in Europe and the Middle East, building on memoranda of understanding signed with partners such as Benta SAS and Keke Medtech. These partnerships aim to unlock additional non-dilutive capital and establish commercialisation pathways in key regional markets. The company also continues to generate recurring royalty income from its fibrinogen-depleted human platelet lysate stem cell culture supplement products, validating its platform technology.

Financial Position and Funding Strategy

Despite a net operating cash outflow of $0.364 million for the quarter, Cambium Bio ended December 2025 with $0.774 million in cash. The company is pursuing a multi-pronged funding approach, including the announced ZYBT placement, RDTI pre-financing options, licensing deals, and potential strategic equity investments. This diversified strategy aims to ensure sufficient capital to advance clinical milestones while maintaining cost discipline.

Management remains vigilant on expenditure, with personnel costs including a one-off CEO retention payment reflecting key Phase 3 preparation achievements. The company’s asset-light model continues to limit investing outflows, primarily related to legacy merger expenses.