INOVIQ Faces Going Concern Warning Despite Capital Boost and R&D Gains

Financial Performance and Capital Raise

INOVIQ Limited (ASX, IIQ), a biotechnology company specialising in exosome-based cancer diagnostics and therapeutics, reported a net loss of $3.96 million for the half-year ended 31 December 2025. This represents an increase from the $3.65 million loss recorded in the same period last year, primarily due to heightened research and development expenditure as the company advances its pipeline.

To support its growth ambitions, INOVIQ successfully completed a $10.2 million capital raise during the period. This included a $9.5 million placement at a 15.7% discount to the last traded price and a $0.7 million share purchase plan. Notably, the raise attracted a $5 million cornerstone investment from Tian An Medicare Limited, a Hong Kong-listed healthcare investor, which is expected to facilitate commercialisation efforts in China.

Commercial and R&D Progress

The company’s proprietary EXO-NET exosome isolation technology continues to gain traction, with 76 customers globally by the end of 2025. Growth was particularly strong in Europe and Asia, although US sales faced headwinds due to cuts in government-funded research programs. INOVIQ is also in discussions with diagnostic companies to develop customised exosome capture tools for tissue-specific applications.

On the diagnostics front, INOVIQ secured an exclusive worldwide licence from the University of Queensland’s commercialisation arm, UniQuest, for novel exosomal biomarkers aimed at early detection of ovarian cancer. The EXO-OC screening test has demonstrated exceptional sensitivity and specificity in early-stage ovarian cancer detection and is progressing toward Laboratory Developed Test (LDT) readiness by the end of 2026.

In therapeutics, INOVIQ reported encouraging preclinical data for its CAR-exosome program targeting triple-negative breast cancer (TNBC), a notoriously difficult-to-treat cancer. In vitro studies confirmed potent tumour-killing activity, while in vivo mouse model results showed significant tumour inhibition with a favourable safety profile. These findings validate INOVIQ’s EXO-ACE manufacturing platform and support plans for first-in-human studies by 2028.

Corporate Developments and Outlook

Leadership changes included the appointment of Peter Gunzburg as Non-Executive Chairman and Dr Rebecca Lim as Chief Scientific Officer, bringing extensive experience in biotechnology and cell therapy development. The company ended the period with a strong cash position of $13.8 million, providing runway to fund operations and pipeline advancement over the next 12 months.

Despite the positive momentum, INOVIQ’s auditors highlighted a material uncertainty regarding the company’s ability to continue as a going concern, reflecting the inherent risks and capital requirements typical of early-stage biotech firms. The company acknowledges these challenges but remains focused on delivering key milestones, expanding commercial partnerships, and progressing its multi-product pipeline to create shareholder value.