iX Biopharma Ltd. FY2025 Financial Results Analysis

iX Biopharma Ltd., a Singapore-listed specialty pharmaceutical and nutraceutical company, has released its unaudited results for the six months and full year ended 30 June 2025. This review analyzes the company’s key financial metrics, business performance, and outlook, providing investors with clear insights into the group’s position and prospects.

Key Financial Metrics and Performance Summary

Full Year (FY2025 vs. FY2024):

Historical Performance and Trends

iX Biopharma posted a marked improvement in revenue (+30% YoY) and nearly doubled its gross profit for FY2025. Gross margin improved from 18% to 26%, supported by product mix, manufacturing efficiency, and cost controls, despite ongoing net losses. Loss after tax narrowed to \$(10.14)m from \$(10.79)m, while basic loss per share improved to (1.16) cts from (1.41) cts. The company also reduced operating expenses by \$1.2m, primarily through workforce rationalization and lower marketing spend.

Business Segment Performance

• Specialty Pharmaceuticals: Revenue rose 22% YoY, driven by medicinal cannabis sales in Australia and new launches in the U.S. compounding pharmacy market. Segment adjusted EBITDA loss reduced significantly as the business shifted focus from R&D to commercial supply.
• Nutraceuticals: Revenue more than doubled, with strong performance from the SL-NAD+ and LumeniX wafers, especially in China and the U.S. Expenses as a proportion of revenue fell, and the segment’s adjusted EBITDA loss halved.

Exceptional Items and One-Offs

• Currency Losses: The group recorded a \$3.4m currency exchange loss due to AUD/SGD depreciation, driven by exposure to intercompany loans.
• Fair Value Losses: A \$0.39m fair value loss on convertible bonds was recognized. In FY2024, the group also booked a \$2.35m loss on listed equity securities received from a prior licensing deal.
• Tax: The prior year saw a \$1.38m impairment on deferred tax assets and a \$0.57m tax provision write-back.
• No Dividends: The company did not declare any dividends for FY2025 or FY2024, citing the need to conserve cash.

Corporate Actions and Fundraising

• Rights Issue: In July 2024, the company raised \$3.25m via a rights cum warrants issue. Proceeds were fully allocated to product development and working capital.
• Debt Facilities: Subsequent to year-end, the company secured a US\$4m shareholder loan and refinanced \$2m convertible bonds, extending maturity to July 2026.
• Share Issuances: Shares were issued to employees (performance share plan) and directors (in lieu of fees). Outstanding share awards and warrants are minimal.

Related Party Transactions & Directors’ Remuneration

• Key Management Compensation: \$2.24m in FY2025, including wages, benefits, and share-based payments. No unusual related party transactions were reported.

Chairman’s Statement and Tone

“The Company is focused on commercialising its wellness portfolio and expanding into compounding pharmacy channels in the United States (“U.S.”), backed by targeted R&D that delivers near-term monetizable opportunities. This disciplined approach shifts us away from traditional, long-cycle drug development and aligns innovation with clear commercial pathways.”

The statement adopts a positive and forward-looking tone, emphasizing strategic pivots toward commercialization, operational resilience, and market expansion, particularly in the U.S. wellness and compounding pharmacy markets.

Events and Risks Impacting Outlook

• Macroeconomic Environment: The company acknowledges global macroeconomic headwinds, including geopolitical tensions and currency volatility.
• Going Concern: Despite ongoing losses and negative working capital, directors believe the group is a going concern due to improved cash flows, new funding, and cost control.
• Operational Shifts: Focus on U.S. compounding pharmacy market and wellness products is expected to accelerate revenue growth and reduce losses, but risks remain around execution and funding needs.

Conclusion and Investor Recommendations

Overall Financial Performance and Outlook:
The FY2025 results show significant progress in revenue growth, gross margin expansion, and cost discipline. However, iX Biopharma remains loss-making, with net assets nearly exhausted at group level (net asset value per share: 0.0 cts). The company’s pivot toward commercialization, new U.S. market opportunities, and successful fundraising are positives, but risks around ongoing losses, cash flow, and currency volatility persist.

Investor Recommendations

• If you currently hold the stock:
  Maintain a cautious hold. While progress in revenue and margin is encouraging and the company has secured near-term funding, the balance sheet remains fragile and ongoing losses could necessitate further dilution. Monitor closely for evidence that the U.S. commercialization strategy delivers sustainable profitability, and be alert to any signs of further fundraising or unexpected costs.
• If you do not currently hold the stock:
  Consider waiting. The company’s growth strategy and improving operating metrics are promising, but material risks persist, including funding uncertainty and a history of substantial losses. Potential investors may wish to see at least one more period of improved results and clear evidence of cash flow stabilization before initiating a position.

Disclaimer: This analysis is based strictly on the company’s published financial report and does not constitute investment advice. Please conduct further due diligence or consult a professional advisor before making investment decisions. The company faces significant ongoing risks, and performance may vary materially from current trends.

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