@Rick brought up an interesting point in Clinuvel's latest results noting the large increase in "Materials and related expenses".

Today the CEO released a letter explaining the results. He mentioned:

"In realising a vision, in November 2021 we published total planned expenditures estimated A$175 million spanning five financial years (2021-2025). These projected investments allow for the establishment of a diversified group harboring a portfolio of pharmaceutical products and nonprescriptive OTC products. The executed plan will put the Company in a unique position, centered around a group of melanocortins - potent hormones - serving high medical need in a vast number of life threatening and severe disorders. In sync, the communications-branding-marketing team is preparing new markets for our first OTC product line serving populations at highest risk of skin cancer. A supporting wall, perhaps even a conditio sine qua non for future success, is the continued safety monitoring of SCENESSE® (afamelanotide 16mg)."

Now obviously if the increase in spending doesn't result in an increase in revenue and profit then it is something to worry about. So it is definitely something to look out for in the next few results. Management seem to be very long term focused, the CEO mentioned them talking about "olympic objectives", outlining their goals for the next 4 years and therefore I have faith in the management team to be able to make good use to the increase in expenditure planned.

Link to the CEO letter: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02493144-3A588680?access_token=83ff96335c2d45a094df02a206a39ff4

Disc: Held IRL and on Strawman