Adelaide-based Bionomics (ASX:BNO) has reported strong revenue growth for FY2017 on the back of its agreement with MSD for the discovery and development of novel, small molecule drug candidates for the treatment of chronic and neuropathic pain.
The agreement originally signed in 2013 was subsequently extended with MSD also acquiring a US$9 million stake in Bionomics. The company could receive up to US$506 million for reaching pre-defined research and clinical development milestones.
The agreement involves the development of potential new treatments utilising Bionomics’ ionX and MultiCore drug discovery platforms.
Milestone payments from MSD were reflected in higher revenues during 2017 - $28.2 million compared with $21.7 million for the previous year - with a reduced operating loss after tax of $6.6 million.
It said the development of BNC210, currently in development for Generalized Anxiety Disorder, progressed during the year with positive Phase 2 clinical trial results.