Can Inhalerx Sustain Operations Amid High-Interest Clinical Trial Loans?
Inhalerx Limited reported a $628,000 cash burn in the December quarter while securing substantial funding facilities to advance its clinical trials. The company’s cash position and financing arrangements suggest a runway extending over 80 quarters at current spending levels.
- Net operating cash outflow of $628K for the quarter
- Drawdown of $405K from $38.5M Linlithgow Family Office funding facility
- New $12.6M facility secured for SRX-25 clinical trials, undrawn as of quarter-end
- Cash and equivalents at $436K with $50.8M in unused financing facilities
- Payments of $19K to related parties for key management salaries
Quarterly Cash Flow Overview
Inhalerx Limited has revealed its cash flow position for the quarter ending 31 December 2025, showing a net cash outflow from operating activities of $628,000. This reflects ongoing investment in research and development, product manufacturing, and corporate costs as the company advances its drug development programs.
The company’s cash and cash equivalents stood at $436,000 at the end of the quarter, a modest increase from the previous quarter’s $170,000. Despite the operating cash burn, Inhalerx’s financial footing remains robust due to significant financing activities.
Funding Facilities and Capital Raisings
During the quarter, Inhalerx drew down $405,000 from a $38.5 million funding facility provided by Linlithgow Family Office. This facility is earmarked exclusively for clinical trial costs related to the IRX-211 and IRX-616a drug candidates, covering expenses through to the completion of Phase 2 trials. The facility carries a 15% annual interest rate, capitalised monthly, with terms linked to trial milestones.
Additionally, the company announced a new $12.6 million funding facility to support Phase 1 and 2 clinical trials for SRX-25, its novel oral Esketamine and CYP450 inhibitor combination therapy. As of 31 December 2025, no drawdowns had been made under this facility, indicating that clinical development is still in early stages or that funds are being strategically reserved.
Post-quarter, Inhalerx completed a capital raising, issuing 6.9 million shares at 2.5 cents each, raising $172,500 before costs. This injection of equity capital is intended to finance ongoing corporate expenses, complementing the clinical trial funding.
Financial Position and Runway
With $436,000 in cash and $50.8 million in unused financing facilities, Inhalerx reports an estimated funding runway of approximately 81.5 quarters based on current operating cash outflows. This extended runway provides the company with considerable financial flexibility to pursue its clinical development objectives without immediate pressure to raise additional capital.
Payments to related parties during the quarter amounted to $19,000, representing salaries paid to key management personnel, a standard disclosure reflecting governance transparency.
Looking Ahead
Inhalerx’s strategic focus remains on advancing its clinical pipeline, supported by secured funding facilities that mitigate near-term financial risks. The company’s ability to manage cash flow while progressing multiple drug candidates through clinical phases will be critical to watch in upcoming quarters.
Bottom Line?
Inhalerx’s substantial funding facilities cushion its cash burn, but clinical progress will be key to sustaining investor confidence.
Questions in the middle?
- When does Inhalerx expect to begin drawing down on the $12.6 million SRX-25 facility?
- What are the anticipated timelines and milestones for the Phase 2 trials of IRX-211 and IRX-616a?
- How will the company manage interest costs associated with high-rate funding facilities over the long term?
