Clinical trials not enough to stop Noxopharm (ASX:NOX) shares' 5% plunge on Monday

The Noxopharm share price closed in the red on Monday as the company released its financial results for the half year.

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Key points

  • Noxopharm reported its half year results on Monday
  • The half was marked by clinical trial updates within its drug discovery programmes 
  • In the last 12 months, the Noxopharm share price has plunged 52% 

Shares in Noxopharm Ltd (ASX: NOX) closed Monday in the red after the company released its interim report and financial results for the half year ended 31 December 2021.

The Noxopharm share price finished Monday 5% down at 38 cents as investors responded poorly to the release of its earnings results today.

Noxopharm share price as clinical trials progress

Key takeouts from the company's earnings results include:

  • Strong cash position of A$22.6m due to continued judicious expenditure in the best interest of the company and its shareholders
  • This amount includes $5.9 million R&D tax incentive for FY21 received in January 2022, considered non-dilutive funding for the company
  • Increased investment in R&D of $8.3m compared to $3.0 million in 1HFY20 to advance the clinical trial programs
  • DARRT Program Phase 2 clinical trial (Veyonda with low-dose radiotherapy received IND approval from the FDA

What else happened this half for Noxopharm?

The company's progress was hallmarked by clinical trial and drug discovery momentum, particularly as R&D expenditure increased by over $5 million to support these programs.

Noxopharm says that its clinical trial sites "include some of the leading cancer centres in the world, notably, the US number one cancer hospital, the MD Anderson Cancer Center…as well as the Beverly Hills Cancer Center and the City of Hope Cancer Center".

During the half, Noxopharm's DARRT Program Phase 2 clinical trial, investigating Veyonda with low-dose radiotherapy, received investigational new drug (IND) approval from the Federal Drug Administration (FDA).

As such, the company says the trial is underway at two leading U.S. cancer centres – the MD Anderson Cancer Center and the Beverly Hills Cancer Centre. The patient cohort has already completed first dosages and completed the safety assessments, so updates should be on the way later this year.

Not only that, but Noxopharm made progress on the IONIC Phase 1 trial it is conducting with Bristol Myers during the half. The trial is investigating Veyonda with the Bristol Myers Squibb checkpoint inhibitor, nivolumab, that sells under the brand name Opdivo.

Patients have already been enrolled and treated at the first clinical site the company says, and more sites are expected to open in H1 2022.

Management commentary

Speaking on the announcement, incoming CEO of Noxopharm, Dr Gisela Mautner said:

As incoming CEO, it is pleasing to report that Noxopharm is in a strong cash position with a number of promising programs underway. Our Clinical Portfolio, investigating the combination of Veyonda® with established cancer treatments, is tracking to plan. It is also important to note the relationships we have secured with national and international partners such as Hudson Institute of Medical Research and the US National Cancer Institute, as well
as several prestigious clinical study sites in the USA.

What's next for Noxopharm?

The company will endeavour to progress in its clinical trial and drug discovery programmes as outlined in its earnings report on Monday.

Noxopharm did not provide any specific earnings or cost guidance for the remainder of FY22.

Noxopharm share price summary

In the last 12 months, the Noxopharm share price has plunged 52% and sits 3% in the red since we started trading in 2022.

Over the previous month, shares have faltered another 9% and are down 9% this past week too.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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