1st Oct 2024 15:53
(Alliance News) - Renalytix PLC on Tuesday announced a successful fund raise alongside a narrowed annual loss.
The London-based diagnostics company said it had raised GBP11.8 million via a placing and subscription at 9 pence per share. In a statement on Monday, the firm said it hoped to raise at least GBP10 million.
Chief Executive James McCullough commented: "The strong demand we have seen for the fundraise supports our view that Renalytix offers investors unique access to a world-leading kidney prognostic test."
He pointed out kidneyintelX.dkd is the only test to be approved by the US Food & Drugs Administration; granted full Medicare reimbursement at USD950 per test; recommended in KDIGO clinical guidelines; available to approximately 14 million US diabetic kidney disease patients; and able to address the needs of approximately 260 million DKD patients globally.
"We now have a strong cash and balance sheet position, we have taken positive actions to substantially reduce our monthly cash burn, and we are delivering quarter-on-quarter growth in orders, whilst also supporting a new customer launch. We believe these factors, combined, will take the company to profitability and cash flow break-even in approximately two years and that we have the potential to generate revenue of approximately USD17.5 million in [financial 2027]."
Renalytix said net loss before tax narrowed to USD33.5 million in the year ended June 30 from USD45.6 million a year prior. Revenue slipped to USD2.3 million from USD3.4 million but general and administrative costs nosedived to USD19.8 million from USD28.7 million.
Shares in Renalytix rose 8.1% to 8.64 pence each in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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