Appendix 4C - quarterly
Expenditure during the quarter was lower than forecast primarily due to timing of payments for R&D expenditure plus 11% lower than forecast non-R&D expenditure. Administration and Corporate cash outflow was reduced by 26% (Quarter) and 36% (Financial Year to Date) in March 2020 compared to the previous corresponding periods.
Forecast expenditure for the June 2020 quarter is anticipated to be in line with March 2020 with a reduction in administrative, staff and corporate costs offsetting an estimated 20% increase in R&D costs as activities for development of the Company's Gastrointestinal Reprogramming (GaRP) over-the-counter (OTC) medicine advance. Cash remuneration paid to Directors and the CEO during this period will be materially reduced.
Anatara made three notable announcements during the quarter; reporting the achievement of key milestones for its GaRP OTC medicine development program: (1) summary of successful preclinical data; (2) registered office moves to Melbourne reducing expenditure on the Brisbane office; (3) COVID-19 market update.
The Company remains highly encouraged by the successful in vitro and in vivo preclinical data reported for its GaRP OTC medicine to date. Anatara anticipates a delay, to late second half of 2020, for commencement of its clinical trial in irritable bowel syndrome (IBS). Anatara has designed a decentralised trial allowing participants to be recruited and participate remotely. It is anticipated that this trial design will enable recruitment of participants and higher retention rates than traditional centralised trials. Anatara has initiated partnering discussions with multinational consumer health companies.
In parallel, the Company continues to advance licensing discussions with potential animal health partners for our core animal asset, Detach(R), with the aim of meeting our partnering milestone of end Q2 2020. We do not anticipate a material delay due to the COVID-19 pandemic. Anatara will monitor developments around COVID-19 and if needed, will update the market accordingly.
Anatara CEO, Mr Steven Lydeamore said, "During these uncertain times, the Company remains optimistic that the impact of the COVID-19 pandemic will be limited to medium-term delays in accomplishing our corporate objectives."
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About Anatara Lifesciences Ltd
Anatara Lifesciences (ASX:ANR) is developing and commercialising innovative, evidence-based products for gastrointestinal health where there is significant unmet need. Anatara is a life sciences company with expertise in developing products for animal and human health. Anatara is focused on building a pipeline of human gastrointestinal health products. Underlying this product development program is our commitment to delivering real outcomes for patients and strong value for our shareholders. For more information, please visit www.anataralifesciences.com.
Anatara Lifesciences Ltd