Medicenna Therapeutics Corp (NASDAQ: MDNA) is an immuno-oncology company that announced the financial performance for the year ended March 31, 2021, where the company reported a loss of $17.3 million. In addition, the company guided the way for future growth. Besides this, the company also informed about the MDNA11 phase 1/ 2 study initiation on track.
Reported loss; see promising future: During the year ended March 31, 2021, the company reported a loss of $17.2 million compared to the loss of $8.2 million in the corresponding period last year. The sharp increase in loss is primarily attributed to the higher expenses incurred for research and development activities to develop the MDNA11 program. In addition, the cost incurred for the listing on Nasdaq also widened the loss. Research and Development expenses increased to $10.9 million, compared to $5.9 million incurred during the year ended March 31, 2020.
The management indicated the steps taken in the past are expected to lay down a strong foundation for future growth. The company’s focus is on developing and working towards the advancement of MDNA11 in Q3 of the calendar year (2021). At the end of the period (March 31, 2021) under consideration, the cash and cash equivalents stood at $40.4 million, enabling the company to execute planned expenditures for 2022 based on the plan decided by the board. The strong balance sheet helps the company to rely on internal cash, despite reporting a loss for the two consecutive years. It gives comfort to the shareholders that the company won’t rely more on borrowing.
Initiation of phase 1/ 2 study is on track: Phase 1/2 ABILITY Study is developed to evaluate MDNA11 program, a best-in-class IL-2 Superkine, in patients with advanced solid tumors. The company is expected to start enrolment for the program in the third quarter of 2021 in Australia. In addition, the company is looking to expansion of additional sales in the U.S, Canada, and the U.K. The company believes that they are well poised to ensure the study continued advancement and high potential to improve the health of the patients with tumors and improved monotherapy efficacy.