Health food business Elixinol Wellness reported a loss after tax of A$3.1 million in the six months to June, up from $2.8m in the previous corresponding period.
Adjusted EBITDA losses also widened from $1.5m to $2.2m, although cash burn during the half year period reduced from $2.1m to $1.4m.
As previously reported, revenue climbed almost 13% to $7.6m, driven by Elixinol’s Healthy Chef subsidiary which delivered $1.7m and a rebound in Health Foods Australia which generated sales of $2.4m.
Gross margins lifted from 35% to 37% as a result of Healthy Chef’s higher-margin products and an increase in online sales.
The company had $1.1m of cash in bank at the end of June, down from $1.6m.
Elixinol said the H2 focus would be on “cash discipline and operational efficiency” as it looks to drive a “path to profitability”.
Shares closed Monday trading at 1.7 cents.
UPDATE (September 4, 2025): Elixinol has entered a trading halt pending details of a proposed financing arrangement.
The halt will remain in place until either the announcement is released or trading resumes on Monday, September 8.
Avecho Biotechnology
Avecho Biotechnology reported a half-year loss of $2.68 million for the six months to June 30, 2025, up 23% on the prior corresponding period, despite stronger revenue and a cash injection from its licensing deal with Sandoz.
Revenue rose 79.4% to $560,069, while R&D tax incentives and other income increased 9.3% to $792,575.
Expenses from continuing operations climbed 24.3% to $3.86m, driven by higher administrative costs and R&D expenditure linked to its Phase III clinical trial of a cannabidiol soft-gel capsule for insomnia.
The company ended the half with $5.93m in cash, bolstered by a US$3m (A$4.8m) upfront payment from Sandoz for the exclusive Australian rights to its CBD capsule.
The fee, received in March, will be recognised as revenue once performance conditions are met.
Recruitment for the insomnia trial accelerated during the period, with 131 patients enrolled by July and interim results expected in early 2026.
InhaleRx
InhaleRx secured Human Research Ethics Committee (HREC) approval to commence its first-in-human phase I clinical trial of IRX-616a, an inhaled synthetic CBD therapy for panic disorder.
The randomised, double-blind, placebo-controlled single ascending dose study will be conducted at CMAX in Adelaide, enrolling up to 24 healthy volunteers across three cohorts.
Participants will receive a single inhaled dose via a pressurised metered-dose inhaler, designed to deliver rapid systemic absorption within minutes.
The trial is fully funded under the company’s $38.5 million clinical development agreement with Clendon Biotech Capital.
Chief executive Darryl Davies said the approval marked “a major milestone” for the company as well as patients living with panic disorder.
“RX-616a is designed as a rapid-acting, inhaled option intended to provide relief when it’s needed most,” he said.
“Advancing into Phase 1 brings us one step closer to delivering a differentiated therapy that could meaningfully improve patients’ day-to-day lives.’
Zelira Therapeutics
Zelira Therapeutics reported a preliminary full-year loss after tax of $3.85 million for FY25, down 89.5% from the $36.7m deficit in the previous year.
Revenue collapsed to just $656, from nearly $95,000 in FY24, while other income rose 25% to $1.16m, driven by the federal R&D tax incentive.
The company highlighted progress with its HOPE SPV, which secured additional funding and converted US$3.25m ($A5m) in convertible notes to equity.
Zelira ended the year with $5,663 in cash (down from $586,000) and subsequently secured a $650,000 R&D loan facility to bolster working capital.
Argent Biopharma
A move away from “non-core activities” saw Argent Biopharma deliver revenue of only $180,646 in FY2025, 80% lower than 2024.
Losses for the year climbed 2% to $17.8m.
The company said the reduced sales and increased loss “are aligned with the company’s strategic direction” to “focus resources on its development pipeline”.
Argent last month revealed plans to acquire the assers and IP of AusCann.