Metabolic Pharmaceutical Limited

Q2

Accordingly, Metabolic Pharmaceutical Limited creates value for investors with corporate strategy, which mainly concentrates on continuous development of existing clinical stage drugs AOD9604 and ACV1. Necessarily, analysis of the company’s value chain provides more insights of the value creation to the investors. Within the value chain, drug pipeline is the fundamental lying at the central. Currently, Metabolic Pharmaceutical’s R&D projects on the drug pipeline focus on the clinical stage drugs AOD9604 and ACV1, which significantly contribute value to investors. Specially, AOD9604 has been tested up to Phase IIB and resulted in effective weight loss and excellent tolerability without major side effects. ACV1 is controlled to relieve neuropathic pain relief without apparent adverse effects at Phase I. And both Phase I and IIB have high success rate of 100% and 60% respectively. Upon observing to stage of development, the company is expected to generate income soon and be less risky for investors because both drugs approach the final stages and launch soon. Moreover, Metabolic Pharmaceutical has created strong market proposals as support activity in the value chain that ADO9604 targets obesity and ACV1 targets neuropathic pain. Advantageously, these diseases are commonly found among the population that the company are expected to generate over $5 billion p.a and $1 billion p.a by drugs ADO9604 and ACV1 respectively.

Besides, Metabolic Pharmaceutical’s value-adding activities include reinforce of capital through issue of equity or proceeds of existing drugs and further expansion on additional drugs pipeline. In order to acquire adequate funds for the projects, Metabolic Pharmaceutical have embarked on the capital raisings. Particularly, capital was raised by a share purchase plan of A$4 million offer to existing shareholders and a Private Placement of A$13 million to domestic and offshore institutional. The capital raising secured the company’s core business operation to deliver value for investors. Additionally, Metabolic Pharmaceutical has developed additional drugs pipelines. Expansions include neuroregenerative peptides and other projects at discovery stage that target the type 2 diabetes and nerve regeneration markets. Therefore, the company diversifies its project to boost the return and lower the risk for investors.