Emyria saw sales revenue decline by a third in the first six months of the financial year as the company switched its focus to drug development and away from selling data.
Losses also deepened to almost A$3.7 million, 77% higher than the previous corresponding period. Emyria blamed the decline primarily on unvested, options-based incentives of $1.55m.
Despite the headline figures, shares in the Perth-based company jumped 5.6% to $0.28c, giving it a market capitalisation of $73m.
Sales revenue for the six months to December 31, 2021 totalled $782,000, down 32%, which Emyria said reflected the “decreased emphasis on pursuing data deals and increased focus on drug development”.
The firm’s drug development program includes EMD-RX5, an “ultra pure” CBD capsule targeting multiple indications. Emyria said preclinical studies have demonstrated improved bioavailability compared to Epidyolex, one of only two cannabinoid medicines registered by the Therapeutic Goods Administration.
The first target indication — under a project called EMD-003 — is non-specific symptoms of psychological distress covering anxiety, depression and stress.
“Despite its high and growing prevalence, there is currently no registered over-the-counter treatment for psychological distress,” the company said in its interim financial report. “A registered and effective OTC treatment could address a large and unmet need.”
A further development program, EMD-004, is targeting irritable bowel syndrome.
Emyria is also exploring MDMA, or ecstasy, with a clinical trial for patients with Post Traumatic Stress Disorder (PTSD) progressing towards ethics submission.
Opportunities to explore the development of other novel psychedelic therapies are also being pursued, the company said.