Analytica Quarterly Report: Cash Outflow Reduced by $824k, INOV8 Additional $500k Placement, FDA Clearance

Highlights:

• Cash outflow reduced by $824k on previous quarter
• INOV8 additional $500k placement
• FDA Over-the-Counter clearance for PeriCoach
• AutoStart Burette granted US patent

Analytica Ltd (ASX: ALT), manufacturer of the PeriCoach® System, is pleased to announce its Appendix 4C – Quarterly cash flow report for period ending 30 June 2016.

Analytica’s cost reduction measures have resulted in cash outflow of $881k for the quarter a reduction of $824k on the previous quarter. A share purchase plan and share placements in April increased capital by $2,105k. The company estimates a tax incentive R&D refund of approximately $1.3m next quarter. American Virgin Islands cornerstone investor INOV8 LLC has committed to further placements of $250k at the end of August and a further $250k at the end of September. This additional $500k in 2 tracts together with the cost reduction program extends Analytica’s cash well into the next calendar year. The loan facility of $400k from Chairman Dr Michael Monsour continues to be available.

Version 3 of the PeriCoach system has reached production and Analytica prepares to gather verification and validation data for this next gen device. Software development is on track as enhancements to the database are near completion and new features to the app, such as the Bladder Diary have been introduced. These user interface updates provide users with a comprehensive picture of treatment progress which motivates them to stay engaged. Compliance with the exercise programme is key to achieving positive results for pelvic floor exercise.

With FDA granting clearance, the PeriCoach System is a medical device with internationally accepted safety testing, supported by clinical papers and case studies and no longer requires a prescription. Analytica aims to ensure that the company’s commercialisation partner has a reduced time to market and support from the clinical community. This quarter, additional clinical papers and testimonials were collected along with case studies published in the peer reviewed Urologic Nursing Journal of the US Society of Urologic Nurses and Associates.

Analytica achieved a significant milestone this quarter after being granted patent protection for its AutoStart® burette. Obtaining this patent is another important step in the commercialisation of the AutoStart infusion system. The patent increases the market opportunity within the US and positions the company for additional license deals for the product.

Also in this period Analytica’s Australian partner, Medical Australia Ltd (ASX: MLA) also succeeded in having the AutoStart infusion system added to the Queensland Health tender list under their Tuta FirstFlow brand name. This permits any Queensland hospital or health clinic to buy the product.

“Reaching the US FDA over the counter clearance, launching new app features, garnering further clinical support and published evidence for PeriCoach in the first half of 2016 demonstrates our commitment to put Analytica in the best possible position for a partnership,” said Geoff Daly, CEO of Analytica. “The continued investment by our cornerstone investor INOV8 reflects confidence in our strategic direction.”