Vectus Biosystems Nears $4.3M XORTX Deal, Advances Licensing Push

Transaction with XORTX Nears Close

Vectus Biosystems Limited is on the cusp of completing a significant transaction involving its VB4-P5 Renal Small Molecule Compound, designed to treat renal fibrosis. The deal, structured as a sale of intellectual property and related data to XORTX Therapeutics Inc., a Canadian biotech listed on Nasdaq and TSX Venture Exchange, is valued at US$3 million (approximately A$4.3 million). The consideration will be paid through a combination of shares and pre-funded warrants, which Vectus can convert into shares without additional cost.

This transaction marks a pivotal step for Vectus, providing it with a direct equity stake in XORTX and potentially unlocking new avenues for collaboration in renal drug development. The deal remains subject to final closing conditions, with ongoing legal discussions between the parties.

Licensing and Commercialisation Efforts Intensify

Beyond the XORTX deal, Vectus is vigorously advancing its commercialisation strategy. The company’s lead compound, VB0004, along with other candidates such as VB4-A32 and VB4-A79, are the focus of an active outreach programme managed by C14 Consulting Group. This initiative targets pharmaceutical companies interested in licensing or transactional partnerships, particularly in China, where regulatory pathways may be accelerated for drugs with established safety profiles.

Vectus is exploring opportunities for third parties to fund Phase IIa clinical trials in China, concentrating on liver and lung disease indications. The company’s portfolio of orally administered small molecules aims to address fibrosis in key cardiovascular organs, a significant unmet medical need globally. Multiple patents protect these compounds, underscoring their commercial potential.

Financial Position and Cost Management

Financially, Vectus reported cash on hand of $330,000 at the end of December 2025, down from $569,000 the previous quarter. This balance includes proceeds from a $422,000 research and development tax refund received in September 2025. Operating expenses for the quarter were tightly controlled at $102,000, covering commercialisation activities, patent renewals, corporate overheads, and the final stages of Phase I clinical trials.

The company has also fully drawn a $450,000 loan facility from a director, which can be repaid without penalty upon securing alternative funding. With Phase Ib trials completed, Vectus has significantly reduced its operating costs and relocated to lower-cost premises, positioning itself for a leaner operational model.

Outlook and Strategic Considerations

Vectus continues to evaluate funding options, including licensing deals that could provide upfront payments and ongoing revenue streams. The potential sale of XORTX shares post-escrow period offers an additional liquidity avenue. The company’s ability to sustain operations hinges on closing the XORTX transaction and successfully monetising its drug candidates through partnerships or licensing agreements.

As Vectus navigates these developments, the market will be watching closely for confirmation of the XORTX deal closure and announcements of licensing agreements, which could materially impact the company’s financial trajectory and strategic positioning in the fibrosis treatment landscape.