Algorae Pharmaceuticals Driving Expansion with Innovation and Commercialisation

Algorae Pharmaceuticals (ASX: 1AI) has reported a period of significant expansion as it broadens its operations to include complementary commercial activities.

In the three months to end September, the company advanced its dual-track strategy of AI-driven innovation and pharmaceutical commercialisation, securing two landmark deals to expand its presence across Australia and New Zealand.

Algorae also advanced its proprietary AI drug discovery platform and therapeutic pipeline.

Cadila Pharma Partnership

Algorae secured a deal with India-based Cadila Pharmaceuticals during the quarter for the launch of two generic medicines in the Australian and New Zealand markets, targeting cardiovascular and metabolic disorders.

Negotiations with Cadila to finalise a definitive licencing and supply agreement are advancing, with regulatory submissions to follow.

The partnership represents a step forward in establishing a sustainable revenue base through Algorae’s wholly-owned subsidiary AlgoraeRx, and followed the execution of an exclusive licencing deal with Sakar Healthcare that will enable the launch of five oncology generics across the region.

Collectively, the Cadila and Sakar partnerships expand Algorae’s portfolio to seven initial medicines, reinforcing its strategy to combine AI-powered drug discovery with commercial pharmaceutical distribution.

AlgoraeOS 2.0 Upgrade

Algorae continued to strengthen its scientific foundations through the development and validation of Version 2.0 of its proprietary AI drug discovery platform AlgoraeOS.

The upgrade introduces high-performance multi-GPU processing and multi-modality data integration, incorporating gene expression and pathway activation datasets with enhanced cross-validation protocols to improve predictive accuracy and generalisability.

It is expected to accelerate the identification of synergistic drug combinations and expand the applicability of AlgoraeOS across multiple therapeutic areas.

Therapeutic Pipeline

Algorae’s “lab-in-the-loop” validation program with the Peter MacCallum Cancer Centre in Victoria continued to evaluate 21 AI-predicted drug combinations generated by AlgoraeOS Version 1.0 across brain, breast, pancreatic and prostate cancer models.

The company expects the results to provide empirical validation of the platform’s predictive accuracy, guiding subsequent model refinement.

Dementia candidate AI-116 remains in pre-clinical development following earlier results which demonstrated superior efficacy to current standard therapy Donepezil and the filing of an international PCT patent application to protect associated intellectual property.

Cardiovascular program AI-168, conducted in partnership with the Victorian Heart Institute at Monash University, is being further developed based on previously-reported cardioprotective effects which exceeded those of existing FDA-approved beta-blockers.

Strong Cash Position

Algorae held cash reserves of $1.92 million at end September, compared with $2.32m in the previous quarter.

Net operating cash outflow of $394,957 reflected continuing investment in the development of AlgoraeOS, as well as pre-clinical research and initial commercial setup costs associated with emerging revenue partnerships.

Research and development expenditure for the period totalled $78,023 while payments to directors and related parties was $80,000, consistent with prior quarters and in line with the company’s governance framework.

Algorae said it would continue the prudent management of its capital base, directing expenditure toward programs with near-term value inflection while maintaining eligibility for research and development tax rebates and exploring additional non-dilutive funding pathways as commercial revenues commence.