The Perth company Emyria reported a one-third drop in sales revenue during the opening half of the financial year, attributing the decline to a strategic shift toward drug development and away from data sales activities.
Net losses expanded to approximately A$3.7 million, representing a 77% increase over the same six-month period a year earlier. The company attributed most of this deterioration to unvested, options-based compensation costs totalling $1.55m.
Market reaction proved positive despite the negative headlines, with the company's share price climbing 5.6% to $0.28c, which valued the firm at $73m.
For the six-month period ending December 31, 2021, revenue totalled $782,000, a 32% decline that the company attributed to its "decreased emphasis on pursuing data deals and increased focus on drug development".
The company's development pipeline features EMD-RX5, an "ultra pure" CBD formulation designed for multiple therapeutic areas. Early-stage studies showed the compound achieves higher bioavailability than Epidyolex, which is among just two cannabinoid-based medicines approved by the Therapeutic Goods Administration.
The initial therapeutic application, designated EMD-003, aims to address general psychological distress symptoms that include anxiety, depression, and stress.
"Despite its high and growing prevalence, there is currently no registered over-the-counter treatment for psychological distress," the company said in its interim financial report. "A registered and effective OTC treatment could address a large and unmet need."
A separate development program, EMD-004, aims to treat irritable bowel syndrome.
The company is additionally investigating MDMA (commonly known as ecstasy) through a clinical trial in post-traumatic stress disorder patients that is advancing toward ethics committee approval.
The firm is evaluating additional therapeutic pathways within the novel psychedelic space.
