Percheron Cuts Half-Year Loss by 64% to $3.1 Million
Percheron Therapeutics reports a 64% reduction in half-year losses to $3.1 million, driven by progress in its licensed immuno-oncology drug HMBD-002 and a strategic pivot away from discontinued assets.
- 64% reduction in net loss to $3.1 million for H1 FY26
- Exclusive worldwide license secured for HMBD-002 from Hummingbird Bioscience
- Phase II clinical trial for HMBD-002 planned to start in second half of 2026
- Discontinuation of Avicursen development following negative phase II data
- Cash reserves at $4.46 million with material uncertainty on going concern
Financial Performance and Cash Position
Percheron Therapeutics Limited has reported a significant improvement in its financial results for the half-year ended 31 December 2025, with a net loss of $3.1 million, down 64% from $8.5 million in the previous corresponding period. This reduction reflects lower research and development expenses and non-cash share-based payment charges. Despite this progress, the company’s cash reserves have decreased to $4.46 million from $10.17 million at mid-year, underscoring ongoing funding challenges common in clinical-stage biotech firms.
Strategic Licensing of HMBD-002
A key highlight of the period was Percheron’s exclusive worldwide licensing agreement for HMBD-002, a recombinant humanised monoclonal antibody targeting VISTA, a novel immune checkpoint protein implicated in cancer. Licensed from Singapore-based Hummingbird Bioscience in June 2025, HMBD-002 has shown promising safety and tolerability in a completed phase I trial in the US, with some patients exhibiting tumour size reductions and prolonged stable disease.
Percheron now holds the Investigational New Drug (IND) sponsorship with the US FDA and is preparing for a phase II trial scheduled to commence in the second half of 2026. The planned trial will use an adaptive multi-arm design to efficiently evaluate HMBD-002 across multiple tumour types in the US, Australia, and potentially other regions. This approach aims to accelerate clinical proof-of-concept while managing costs and risks.
Discontinuation of Avicursen and R&D Incentives
In contrast, the company has ceased development of Avicursen (ATL1102), an antisense oligonucleotide targeting CD49d for Duchenne muscular dystrophy, following disappointing phase II data announced in December 2024. This strategic refocus allows Percheron to concentrate resources on its oncology pipeline.
Additionally, Percheron received a $1.43 million R&D tax incentive refund from the Australian Taxation Office for eligible research activities, providing some financial relief amid ongoing investment in clinical development.
Going Concern and Future Funding
The company’s directors have flagged a material uncertainty regarding Percheron’s ability to continue as a going concern, given the cash burn and current reserves. While the company has a history of successful capital raises, including a $14.8 million placement and rights issue in 2024, further funding or strategic partnerships will likely be necessary to support the upcoming phase II trial and ongoing operations.
Management remains confident in the company’s prospects, supported by cash flow forecasts covering at least 12 months and the potential value of HMBD-002’s novel immuno-oncology mechanism. However, investors should remain attentive to the company’s capital strategy and clinical milestones in the coming months.
Bottom Line?
Percheron’s reduced losses and HMBD-002 progress mark a pivotal step, but funding and clinical proof remain critical hurdles ahead.
Questions in the middle?
- Will Percheron secure additional capital or partnerships to fund the HMBD-002 phase II trial?
- How will the adaptive multi-arm design impact the speed and cost of clinical development?
- What are the prospects for HMBD-002’s efficacy data to differentiate it in a competitive immuno-oncology landscape?
