ASX Announcements

In accordance with Listing Rule 3.16.3, LCT advises that, BDO Audit Pty Ltd has been appointed as auditor of the Company. The appointment follows the resignation of BDO East Coast Partnership, and ASIC’s consent to the resignation in accordance with s329(5) of the Corporations Act 2001.

The appointment of BDO Audit Pty Ltd is a result of the national integration of BDO practices, which includes transitioning its audit engagements from BDO East Coast Partnership to BDO Audit Pty Ltd.

A resolution will be proposed at the 2020 Annual General Meeting to confirm the appointment of the Company’s auditor.

The Preliminary Final Report (Appendix 4E) on the financial results for the year ended 30 June 2020 was released today.

The COVID-19 pandemic affected progress in the company’s ongoing projects as well as opportunities to progress licensing and partnership discussions, particularly during the second half of the year. This is reflected in the financial results. In the first half of the year the company completed follow up of NTCELL safety and efficacy in our clinical studies of NTCELL in Parkinson’s disease and the close out of the Phase I/II and Phase IIb research projects. LCT also made progress in the research partnerships with the University of Auckland that target migraine and obesity.

Financial Results

The loss after income tax from continuing operations has reduced from a loss of $(3,181,363) in the year ended 30 June 2019 to a loss of $(968,469) helped mainly by a profit of $1,100,159 from the sale of shares in Semma Therapeutics.

Revenue and other income decreased from $769,677 to $553,692 due mainly to lower grant income as R & D expenditure reduced in the second half due to COVID-19 restrictions and the closing of the Phase I/II and Phase IIb research projects. Research and development expenses decreased from $(3,328,905) to $(2,383,801) due to COVID-19 restrictions and the renegotiation of the migraine and obesity projects with the University of Auckland.

Cash and cash equivalents decreased from $4,907,957 to $2,964,874 due to investing into product opportunities while containing costs.

Living Cell Technologies (LCT) founder, Emeritus Professor Sir Robert Elliott, has died aged 86.

Chairman Dr Bernie Tuch today paid tribute to one of the country’s foremost scientific entrepreneurs.

“The medical, scientific and biotechnology communities in New Zealand have lost a tireless researcher and a visionary pioneer,” said Dr Tuch. “All of us at LCT are saddened to hear of his death.

“Long before Bob founded LCT, he was at the forefront of child health research in New Zealand.

“His research into cystic fibrosis and type 1 diabetes was world renowned and he contributed to other biotechnology success stories including A2 Corporation and Somnaceutics.”

Sir Robert trained as a paediatrician at Adelaide University. He moved to New Zealand in 1970 to become the Foundation Professor, Director of Paediatrics at The University of Auckland. A world leader in diabetes and autoimmune related research, he published more than 200 research papers and was an Emeritus Professor of Child Health Research.

Sir Robert received his knighthood in June 2020 for services to medical research. In 2011 he was awarded the prestigious World Class New Zealander (Life Sciences) award. In 1999 he was awarded a CNZM (a Companion of the New Zealand Order of Merit) for services to the community. 

He was on the board of Cure Kids, Wings Trust and was patron of the NZ Cystic Fibrosis Foundation. He was also a director of Breathe Easy Limited, Kopu Limited, Visregen Technologies Limited, Fac8 Limited and NZeno Limited.

Sir Robert co-founded Living Cell Technologies (initially called Diatranz) with Auckland businessman David Collinson in 1987 aiming to commercialise his research into type 1 diabetes.

“Bob leaves an incredible legacy,” said Dr Tuch, “one we are humbled to be a part of. We were fortunate to have Bob on the board right up until his death. At 86 years of age he was still coming up with new ideas.

“Bob will be sorely missed; it was an honour to work with him,” he added.

Bob is survived by his wife of more than 60 years, Betsy, their five children and 11 grandchildren.

In the Appendix 4C lodged 30 July 2020 the values represented in the current quarter and year to date columns are not valued in $A’000. The corresponding numbers in the attached amended Appendix 4C have not changed from those released at 10:10am AEST on 30 July 2020.

LCT ended the June quarter with a cash balance of $2,964,873 compared to $3,633,042 in the previous quarter.

Net operating cash flow in the quarter was $(841,919) compared to $140,454 in the previous quarter. Receipts from grants and tax incentives were $40,873 (previous quarter $648,733).

Operating payments were $909,544 compared to $548,032 in the previous quarter. Operating payments include payments to the University of Auckland for obesity and migraine project milestones met prior to lockdown.

During the quarter, the team at the University of Auckland resumed work on the migraine project, LC-002. Professors Debbie Hay and Dame Margaret Brimble and their teams continue with the pre-clinical characterisation of LC-002 and in vivo activity.

CEO, Dr Ken Taylor says LCT’s priority for the quarter ending 30 September is to continue to progress the migraine project, meeting our target milestones.

“We are also continuing discussions on investment and out license opportunities for NTCELL® and both the migraine and obesity projects,” he adds.

LCT ended the June quarter with a cash balance of $2,964,873 compared to $3,633,042 in the previous quarter.

Net operating cash flow in the quarter was $(841,919) compared to $140,454 in the previous quarter. Receipts from grants and tax incentives were $40,873 (previous quarter $648,733).

Operating payments were $909,544 compared to $548,032 in the previous quarter. Operating payments include payments to the University of Auckland for obesity and migraine project milestones met prior to lockdown.

During the quarter, the team at the University of Auckland resumed work on the migraine project, LC-002. Professors Debbie Hay and Dame Margaret Brimble and their teams continue with the pre-clinical characterisation of LC-002 and in vivo activity.

CEO, Dr Ken Taylor says LCT’s priority for the quarter ending 30 September is to continue to progress the migraine project, meeting our target milestones.

“We are also continuing discussions on investment and out license opportunities for NTCELL® and both the migraine and obesity projects,” he adds.