Link to ASZX Release

As expected....good news:

"In a 2023 clinical validation study (n=483), INOVIQ’s SubB2M/CA15-3 test detected over 80% of breast cancers across all stages with 93% specificity. The recently completed monitoring study showed INOVIQ’s test detected breast cancer across key cancer subtypes, correctly identified 19% more breast cancers than a leading approved test and was effective for monitoring breast cancer. The Company intends to use these results to attract a partner to speed up the commercialisation of the test. "

Nice bump in SP. Still a long way to go. But loads more cancer detection product study results coming up (overian cancer detection up soon). And theraputics using exosomes. Alot to like about IIQ.

I think after the overian news, David Williams will do a cap raise to accelerate commercialisation (like he allueded to in the AGM). No idea how large...maybe $20m?

If you want a 'new PNV' IIQ may be worth researching. Happy to answer any questions.

John

https://www.inoviq.com/site/pdf/3c43cb86-8d99-4414-8fcf-ab258ecacee0/Appendix-4C-and-Quarterly-Activities-Report-December-2023.pdf

I was annoyed that the SubB2M Breast final results were not announced as promised by the end of 2023. But they have explained why in the latest Quarterly.

"The monitoring study is being undertaken at contract research organisation ResearchDx and was expected to complete in December 2023. Supplier logistics issues and the holiday period delayed study completion with INOVIQ now expecting to finalise data analysis and report results in February 2024."

Sh!t happens. But i find that in biotech, scientists just cannot meet timelines. I know that science is not linear etc. But it still annoys me. These guys have, i would have throught, a pretty easy job just to verify etc. So the schedule to complete should be fairly predictable.

Anyway....the rest of the Quartelry is pretty much the same as the AGM.

But this caught my eye:

"Exosome therapeutics During the quarter, INOVIQ commenced its in-house exosome therapeutics program including preparing data for its EXO-ACE technology for therapeutic exosome isolation, gaining its Office of the Gene Technology Regulator (OGTR) license to enable engineering of exosome-producing cell lines to target and treat cancer, and performing initial in vitro studies to evaluate the efficacy of engineered exosomes in breast cancer. Initial data showed over 75% killing activity of engineered exosomes to kill breast cancer cells."

Wow! This is a really new potential product line (only announced at the AGM). And i'm not sure that 75% is that great. But i'm sure they can refine it and make it better. But Exosomes are the future....and IIQ seem to be leading the field.

Cheers

Parko

So i listened to the IIQ AGM with David WIlliams as the new incoming Chair. Here is the link:

https://www.youtube.com/watch?v=ywW_4ANdfF8

Key Points:

• Everything tracking along with big annoucments by end of 2023 for SubB2M products (so very soon!)
• David Williams likely to do a Cap Raise and turbo charge IIQ
• New Theraputic Unit using new IIQ Tech called ExoAce. This could be massive.

And there was a bunch of stuff that was not in the presentation. So some notes from the meeting are as follows:

• David is great for IIQ. He provides IIQ with a way to communicate/market their complex technolgy into a financial/commercial language that the market likes.
• David spoke about M&A and Cap Raise. This was very interesting. He said like PNV, need to do a decent Cap Raise to have enough cash to do it properly.
• David asked...is IIQ a diagostic company or a theraputic compnay? And then what does the M&A market look like, given there could be some good opportunities to acquire.
• He spoke about how the board members contribute to management on other companies he is involved with. I think there will be some big board changes with IIQ.
• Leanne (the CEO) stated they have developed a new unit to IIQ!!! A Thereaputic unit...using a new tech called ExoAce using exosomes - This will be discussed more next year. This is HUGE. And ties in well with David's comments above regarding the type of business IIQ wants to be. Diagnotic or Theraputic or both. Exosomes obviously provide lots of information for diagostics, but to also use exosomes for transmission for theraputic outcomes is massive. So this is something to keep an eye on in 2024.
• Exosome market can be broken down into three parts. The collection of exosomes, diagnotics and theraputics. IIQ has the market leading product for collection (low cost and scalable), has multiple diagnositic using exosomes and now they have annouced a new theraputic tech they have developed. So again this is BIG news.
• She made the point that in all of their travels in the last year, nobody can match the ExoNet (the exosome capture product IIQ has in the market). The key point, is that anyone using ExoNet that develops a commercial dianostic, will have to pay a license fee to IIQ. So i think that is why it has not taken off so well to date. But as the market sees the opportunity of using ExoNet and the scaleability it provides, I think this product will start to take off in 2024. And then longer term license fee revenue!
• Other opportunites to enhance other types of cancer detection products. But IIQ will only look at this after commercialisation of their existiing products.

Again...nothing moves quick in Biotech. But there has been significant forward movement in lots of their products. And very shortly we are due an annoucement regarding the SubB2M breast cancer diagnostic commercialisation. This should see a bump upwards in the SP.

Parko

Today was the AGM for IIQ. Nothing new to report except that they continue to tick all the boxes with their products.

And there is likely to be an annoucement before Xmas that their SubB2M Breast Cancer monitoring test is ready for commercialisation! I would expect a decent jump in SP. Don't forget how tightly held this stock is.

For those interested, read today's presentation. Explains it all.

https://www.inoviq.com/site/pdf/f3605511-e6dd-418a-a566-4609b65f626f/2023-AGM-CEO-Presentation.pdf

Any questions ask me and I will try to answer.

Cheers

Parko

IIQ announced that David Williiams is the new Chairman.

As most people know DW is Chairman of PNV. And in my opinion has done great things with PNV. Especially when there was a change of CEO and he stepped in for a while. Also he is great at explaining the technology and marketplace. I believe he is the second largest shareholder in IIQ (behind Merchant Fund).

This is great news. This also means we are getting close to the commercial part of the biotech process.

Cheers

Parko

Announcement from IIQ on 5 Sept 2023

This annoucement is another positive step on the exosome front. ReseachDX have been working with IIQ on their SubB2M products. So the relationship must be working well for IIQ to expand that contract to include the exosome products.

The RDX website explains what ReseachDX do and why we would want to partner with them:

https://researchdx.com/company/

"Although pharmaceutical companies have well-established pathways for drug development, none exist for the co-development of FDA-approved companion diagnostics. In order to acquire the diagnostics expertise needed, biopharma must either outsource to multiple vendors or a large diagnostic company. If they outsource to multiple vendors, they must manage a complex process that is neither flexible nor dynamic. If they outsource to a large diagnostic company, diagnostic development will be limited to the company’s existing technology, product lines, and platforms, which may not be best suited for the companion diagnostic. The choice of platform also affects deployment in the clinical laboratories that may offer the test.

The ResearchDx business model reduces an over-burdensome process by virtue of its organizational structure without competing interests and allows for consideration of emerging molecular technologies in the development process."

So this relationship means IIQ can find the best commercial platform to maximise their SubB2M and Exo-Net products.

No change in valuation for me...just another box ticked on their way to commercialisation and revenue!

Parko

PS - Would love for someone to interrogate my IIQ Bull Case Straw.

INOVIQ (ASX – IIQ) (Formerly BD1)

What they do:

• Developing a range of blood tests that can detect and monitor cancer.
• Their tests have so far shown greater sensitivity / accuracy than current products on the markets and their competitors. 
• The IIQ tests should be a game changer with a huge addressable market. 
• The earlier a cancer is found, the greater the chance of survival.

Products:

IIQ’s products can be split into three categories:

• hTERT – Detection of cancer from urine samples that works with existing tests to improve sensitivity and identify patients with increased risk of bladder cancer. This test has been around for a while and will not be a major revenue earner for IIQ. It came from other company (Sienna) that was acquired/merged. The revenue is helpful ($360k and growing) for IIQ to slow its burn rate whilst it progresses its other products. 
• SubB2M - Cancer detection products that are highly sensitive to a certain sugar found in cancers. Currently split into three products:
• Breast Cancer (SubB2M BC) – Used in Monitoring. This would be a game changer if women can simply perform a blood test rather than the evasive mammogram that are currently used and existing blood tests that have low accuracy. The market would be massive. They are performing the final clinical study and it is expected to be complete by the end of H1 CY24, with the test then expected to be market-ready for partnering/sales. 
• Ovarian Cancer (SubB2M OC) – Used in monitoring ovarian cancer treatment effectiveness and reoccurrence. Validation studies are expected to commence in H2 CY23 and complete within 6 months. Clinical validation of this test is expected to complete in H1 CY24. 
• Multi Cancer (SubB2M SPR test) – A blood test used for early identification of cancers (pre-screening). They have partnered with Nicoya Lifesciences Inc, to develop on their platform. We expect to hear about results late 2023. This would be a GAME CHANGER with a MASSIVE MARKET.
• Exosome - Exosomes are a relatively new field. Exosomes are sent by cells to other parts of the body to communicate about the status of the immune system, when certain cells are replicating out of control and when the body needs certain vitamins and nutrients. Exosomes show great potential for the early identification of diseases and other biomarkers. IIQ’s exosome products are currently split into two products:
• EXO-NET RUO – Helps isolate exosomes from blood samples. The current method to extract exosomes from a blood sample involves ultra-centrifugation for at least half a day. These centrifuges are expensive to buy and operate. The IIQ EXO-NET RUO product takes about 15-30 minutes and involves a quick shake and a magnet. At the moment this product would only be used by researchers. But if an exosome test for cancer detection is found, then this product will be used extensively in conjunction with the test in commercial labs and be a large revenue source. IIQ has valued this exosome research market at US$71 million in 2021 and is forecast to reach US$311 million by 2026. We should start to see sales for this product come through this FY. 
• EXO OC – A test using exosomes in blood for early detection of ovarian cancer in asymptomatic women. The reason ovarian cancer is such a killer, is that there are currently no tests for early identification. Once ovarian cancer is found it is usually too late. On the 9 Aug 2023 IIQ released to the market some news that was not taken very well and I think was misunderstood. IIQ basically said that their EXO OC test does not work well on old blood samples. So this will be ok for its intended use, but in the research phase, this will slow them down (6 months or so) while they source new verified samples. With the amazing results IIQ have had so far EXO OC will be another game changer. There is still a lot of work to be done to get this through to commercialisation, however the results are very promising.
• IIQ are also working on some other exosome products for the research field that I have not investigated. 

Financials:

• They have about $8m cash in bank with a burn of about $1m a quarter. So a runway of about 2 years. They need to get some decent sales of their SubB2M-BC in 2024 to avoid a capital raise. 

Other points:

• Legal proceedings were settled. This concerned an ex-employee who was not happy that her work was not being progressed (Lung cancer test). The IIQ Board decided to focus their resources on SubB2M and Exosomes. She had a large number of shares and I think was dragging the SP down by selling on market. The settlement is pretty good as IIQ gets a share of any revenue she may generate in the future etc. 
• We have some interesting major shareholders. The Merchant Fund with Andrew Chapman 15% and David Williams at 5% (also have some of PNV’s directors on the IIQ Board).
• Communication has not been great from IIQ. But I think they are improving. Their technology is complex and confusing. The way they name products etc. is terrible. But it is how the scientific community operates. I have been investing in IIQ for about 3 years and I still get confused sometimes with their announcements. I hope that as we near commercialisation next year, maybe David Williams could become Chairman. He is great at messaging tech to the market. 
• There are lots of competitors in this space, but I am yet to see any with a product that produces such sensitive / accurate results as IIQs. And IIQ is much more progressed. So I am hopeful we can capture the cancer detection market. I do note that many of our competitors seem to be able to get their company on the news. Every other night I see some news reports about some biotech company that have great initial results but have zero funding and are 10+ years away from commercialisation. I think this type of marketing would def help the SP in the short term. 
• I would also note that the path to commercialisation is a lot quicker for a diagnostic test than a medicine etc. All the approvals are a lot faster. 
• I have not investigated, but have been told that it is a very tight share registry. So when the SP starts to get momentum, it goes up quick, as evidenced by the Feb 2021 announcement of their great results for SubB2M BC/OC where the SP went to $5.60. 

Valuing IIQ:

• The current SP is around $0.70 with a Market Cap of about $64 million. 
• Valuing IIQ is hard, but even if they only get one of their products to market…that is probably a market cap of at least a billion which equates to a SP of around $14
• At the time of the merger in 2020, they had a slide that showed the potential….

• If IIQ can be the leader in cancer detection, then the Market Cap should be in the tens of billions with a SP like a CSL in the $100s. 
• In the next year, with some positive news, I think the SP should get up to about $4. 
• And then once sales start to come in around late 2024/Early 2025…the SP could spike with some good old fashioned irrational exuberance. $10, $20, $100....who knows.

Conclusion:

• IIQ often markets themselves as a company with ‘many shots on goal’ with a huge addressable market.
• These ‘shots on goal’ have been a long time coming, but I think later this year and early 2024 will be when IIQ actually takes some of those initial 'shots on goal' (SubB2M BC etc). 
• In particular, the SubB2M SPR test will be a game changer with much earlier detection of cancers. 
• With all this promising tech, I think we are a prime candidate to be bought out by a Big Pharma. Our market cap is ridiculously low. 

Disclosure – I took a big swing at IIQ and am currently down 50%. But I keep seeing positive steps towards IIQ fulfilling their potential and have never sold a share. 

Love to hear what others think of IIQ. 

Parko