Cynata boosts coffers with $1.4m Government grant

Cynata Therapeutics’ recent run of successful capital raisings has been bolstered by a lazy A$1.39 million tax refund courtesy of the Federal Government’s Research & Development Tax Incentive grant scheme, or “R&D” adding to its already burgeoning $24.9m pile of cash as at the end of December 2020.

The company has successfully raised over $18m in equity over the last two quarters including a $15m institutional investor placement in the December quarter followed by $2.5m from existing shareholders, with sophisticated and professional investors tidying an $800,000 shortfall.

Cynata says today’s contribution from the ATO will help to further pave the way for it to test its unique stem cell therapy technology on a raft of ailments.

These include additional clinical trials in the areas of renal transplantation, diabetic foot ulcers and idiopathic pulmonary fibrosis.

Current trials in Osteoarthritis and COVID-19 may sound poles apart however, Cynata’s trademarked Cymerus platform cell technology offers hope to sufferers of both diseases according to the company.

Stem cells, most familiar as embryonic stem cells, are special human cells capable of developing into all other cell varieties from muscle to brain cells.

Whilst stem cell technology has been developing for a decade or two now, current stem cells used to treat disease are hematopoietic stem cells. These are the adult stem cells found in bone marrow responsible for forming blood. However, a donor can currently transplant these cells only if a perfect match is available.

Instead of the arduous process of undertaking donor match searches, Cynata’s believes plentiful stem cells can be derived another way. By transforming adult stem cells with a type of genetic reprogramming, the company says it can create “pluripotent stem cells” that are capable of operating identically to the valuable embryonic cells.

Cymerus uses the pluripotent cells combined with a precursor cell called mesenchymoangioblast, or “MCA” to fabricate numerous cell therapy products, including mesenchymal stem cells or “MSC’s”. Interestingly, Cynata says it can produce those essential cells at a commercial scale, forgoing the need for multiple donors and conquering the usual supply bottlenecks currently frustrating stem cell therapies and researchers worldwide.

Last year saw Cynata undertake a phase three trial for Cymerus MSC products on osteoarthritis, the most common type of arthritis affecting people globally. Should it succeed, a massive market awaits as osteoarthritis therapeutics are projected to touch US$11 billion by 2025 from US$7.3b in 2020. The MSC products are also driving phase two trials to treat intractable complications arising from COVID-19. Plans are also afoot for further clinical trials of the fascinating Cymerus MSC products in “Graft-versus-host” disease through licensee Fujifilm.

The Phase 2 trials will also look to treat critical limb ischemia, a painful obstruction of the arteries that reduces blood flow to extremities like hands, feet and legs whose remedial markets are on course to reach US$5.39b by 2025.

Other candidate diseases facing this boundless technology’s potential include asthma, heart attack, sepsis, acute respiratory distress syndrome, or “ARDS” and cytokine release syndrome.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au