Dr Boreham’s Crucible: Inoviq Ltd

Small Caps | Sep 19 2022

Dr Boreham’s Crucible

By Tim Boreham

ASX code: ((IIQ))

Share price: 67 cents

Market cap: $59.8 million

Shares on issue: 92,018,702

Chief executive officer: Dr Leearne Hinch

Board: Dr Geoffrey Cumming (chair), Robert (Max) Johnston, Philip Powell, Prof Allan Cripps

Financials (year to June 30, 2022): product revenue $276,745 (down 41%), loss of $6.26 million (previously an $11.1 million deficit), cash of $15.4 million (up 206%).

June quarter 2022: receipts of $163,000, cash burn $1.68 million, cash balance $15.4 million, quarters of available funding nine.

Identifiable major shareholders: Merchant Funds Management 12.63%, Moggs Creek Super (David Williams) 5.3%, Dr Irmgard Irminger-Finger 4.4%.

Inoviq? Ino-who?

Most investors would struggle to recognize one of the newest names in the ASX biotech family which, we’re reliably informed, means “intelligent innovation”.

Given the company’s three-pronged program covering cancer diagnostics and involving lots of dense acronyms, investors could also be forgiven for understanding where these innovative smarts are being directed.

For those who haven’t been paying attention, Inoviq is the new moniker for Bard1, which subsumed fellow ASX-listed Sienna Diagnostics at the onset of the pandemic in mid-2020.

While the two companies are pretty much an omelet these days, the active programs are weighted to the old Sienna.

Inoviq chief Dr Leearne Hinch admits the company can seem complicated, given its various technology strands and multi-product pipeline.

“People have a better understanding of therapeutics; there’s less understanding of what diagnostics, do although Covid has significantly changed that,” she says.

Inoviq’s ultimate aim is simple enough: to commercialize better diagnostics for some of the most common cancers.

“The current cancer diagnostics are far from reliable,” Dr Hinch says.

“The key unmet need is to detect cancer earlier and more accurately. We have a host of opportunities, from screening to diagnosis to treatment selection and patient monitoring.”

How the omelet was cooked

Sienna listed in mid-2017, backed by deep-pocketed names including former Macquarie Bank chief Allan Moss and rag trader tycoon David Neate.

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