Syntara’s Growing Loss Raises Questions on Funding and Receivables

Financial Overview

Syntara Limited has reported a loss after tax of $5.859 million for the half-year ended 31 December 2025, more than doubling the $2.716 million loss recorded in the prior corresponding period. The widening loss reflects continued investment in its clinical-stage drug development pipeline, with no dividends declared. Despite the loss, the company’s cash position remains solid at $10.5 million, supported by a $5.6 million R&D tax incentive refund from the Australian Government, which provides non-dilutive funding to support ongoing research activities.

Clinical Pipeline Progress

Syntara’s lead candidate, amsulostat (SNT-5505), is progressing across multiple indications. In myelofibrosis, final 52-week data from the Phase 2a MF-101 trial demonstrated durable symptom relief and spleen volume reduction, with a favourable safety profile. The company also expanded amsulostat’s development into myelodysplastic syndromes (MDS) through two Phase 2 studies; MESSAGE in Australia and AZALOX in Germany; evaluating combination therapies with hypomethylating agents. Early clinical data and regulatory milestones, including orphan drug designation in both the US and EU, strengthen the asset’s commercial potential.

Beyond blood cancers, Syntara has initiated a collaboration with the Garvan Institute to explore amsulostat in advanced pancreatic cancer, supported by a $3 million Medical Research Future Fund grant. This trial aims to enhance chemotherapy efficacy by targeting tumour fibrosis, marking a strategic expansion into solid tumours without additional cash outlay.

Other Pipeline Developments

Topical pan-LOX inhibitors targeting fibrotic skin disorders are also advancing. SNT-9465 completed Phase 1a with positive safety and target engagement results and has moved into a Phase 1b controlled study for hypertrophic scars. Meanwhile, SNT-6302 is under investigation in keloid scars through the SATELLITE Phase 1c study led by Professor Fiona Wood, with results expected in 2026. Additionally, SNT-4728, targeting neuroinflammation in isolated REM Sleep Behaviour Disorder, completed recruitment in its Phase 2 trial, triggering a $1.8 million milestone payment from Parkinson’s UK.

Corporate and Financial Position

The company’s balance sheet shows a reduction in total current assets to $13.8 million and liabilities down to $3.45 million, reflecting prudent management amid ongoing clinical investment. Syntara continues to pursue outstanding payments related to the 2023 sale of its mannitol respiratory business to Arna Pharma, with approximately $0.7 million still claimed but subject to timing and quantum uncertainty. Post-period, the company appointed a new company secretary and issued performance rights to employees, reflecting ongoing efforts to incentivise staff.

Outlook

Looking ahead, Syntara is positioned for multiple clinical readouts in 2026 that could materially impact its valuation and strategic direction. The company’s focus on orphan drug designations and non-dilutive funding sources provides a foundation for sustainable development despite near-term losses. Investors will be watching closely for efficacy data from the MDS and pancreatic cancer trials, as well as updates on the scar treatment programs and the neurodegenerative disorder study.