ASX Health Wrap: Licensing deals and milestones
The ASX healthcare sector posted gains of more than 13% in June following a difficult period, signalling a rebound in investor sentiment. Companies across the sector are reporting clinical and commercial milestones that could reshape their market value.
Dimerix secured its fifth regional licensing deal for DMX-200 with Everest Medicines, covering Greater China, South Korea, and key Southeast Asian markets. Under the terms, Everest will handle development and commercialisation in those regions, while Dimerix is eligible for up to approximately $481 million in development and sales milestones, plus tiered royalties on net sales. [1]Gold value often rises during geopolitical instability, mirroring the strategic financial moves seen in this deal.
This transaction boosts the aggregate potential value of Dimerix’s licensing agreements to roughly $1.9 billion in milestone payments, alongside ongoing royalties. The company also advanced its ACTION3 Phase II study for focal segmental glomerulosclerosis (FSGS). An external blinded statistical review confirmed the trial remains appropriately powered at greater than 90% to demonstrate a treatment effect for the primary proteinuria endpoint. With the adult cohort fully recruited, Dimerix and its partners elected to continue the study through to the final proteinuria endpoint, with 333 patients randomised and dosed across 21 countries.
Post-quarter, Dimerix expanded its kidney disease pipeline through the acquisition of DMX-652, a first-in-class USP30 inhibitor for acute kidney injury. The asset has completed Phase 1 studies and received US FDA clearance to proceed with Phase II development. A patent relating to DMX-652 was also granted by the United States Patent and Trademark Office. To support these activities, the company secured a $10 million non-dilutive funding facility. Combined with existing cash reserves and the expected Everest upfront payment, Dimerix is funded through the completion of ACTION3 and the initiation of the DMX-652 Phase II trial.
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The deal represents a significant shift in how drug development is financed, as smaller biotech firms increasingly rely on global partnerships to cover the high costs of clinical trials. By offloading the commercial risk to a larger partner, companies like Dimerix can focus resources on the science without depleting their cash reserves. This strategy allows them to push through the expensive Phase II and Phase III stages that often determine whether a therapy reaches the market, effectively turning potential future revenue streams into the fuel needed to get there.
Expanding the footprint of wireless pacing
EBR Systems continued to advance the limited market release of its WiSE wireless cardiac pacing system during Q2 CY26. The company completed 46 WiSE commercial implants, bringing total implants across the pilot phase and LMR to 117. Of these, 87 were performed during CY26 to 30 June. EBR signed 17 new purchasing contracts during the quarter, bringing total contracts signed to 52, while 26 additional physicians completed training. The company now has 90 trained physicians across 30 activated hospital sites.
As the limited market release matures, EBR is shifting its focus from expanding the number of sites and trained physicians towards increasing utilisation within existing accounts. More than half of activated sites have now completed three or more WiSE implants, supporting repeat procedural experience and commercial adoption. The company reported continued demand for WiSE, with encouraging patient identification and scheduling activity expected to support further implant growth in H2 CY26. EBR expects Q2 revenue of US$2.5m to US$2.6m, subject to final quarter-end adjustments.
During the quarter, EBR partially completed a fully underwritten $150m capital raise, with the final $35m tranche expected to be completed by August 24. Proceeds are supporting the US commercial expansion, manufacturing scale-up, cost reductions, ongoing R&D, and the pathway to cashflow breakeven. The company also made progress on reimbursement and hospital access, with CMS initiating the National Coverage Determination process for WiSE. EBR secured purchasing agreements with major US healthcare networks including HCA Healthcare, Advocate Health and CHRISTUS Health.
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Advancing a potential bio-defence countermeasure
Island Pharmaceuticals delivered significant progress across its Galidesivir program during the June quarter, advancing manufacturing, regulatory and development activities aimed at supporting its FDA Animal Rule pathway for Marburg virus disease. The company started GMP manufacturing of Galidesivir through global contract research organisation PI Health Sciences. The campaign supports planned key studies, regulatory submissions and future biodefence opportunities, including potential government procurement programs.
Island expanded its collaboration with the US Army Medical Research Institute of Infectious Diseases (USAMRIID) through an updated Cooperative Research and Development Agreement (CRADA). The agreement confirms a planned dose optimisation study, expected to commence this quarter, with topline results targeted for Q4 CY26. The USAMRIID study will evaluate different Galidesivir dosing regimens and treatment timeframes to identify the optimal dose for the FDA Animal Rule pathway. Post-quarter, Island executed a statement of work with Texas Biomedical Research Institute, establishing the second phase of its FDA-directed dose optimisation program. Combined, the programs will generate data from 32 non-human primates to strengthen future regulatory submissions.
During the quarter, the US FDA granted Orphan Drug Designation to Galidesivir for post-exposure prophylaxis of Marburg virus, which provides potential regulatory and commercial benefits, including eligibility for market exclusivity upon approval. Following quarter end, Island secured regulatory and government approvals to provide Galidesivir to patients under compassionate use during Uganda’s Bundibugyo Ebola outbreak under the World Health Organization’s MEURI emergency framework. Beyond Galidesivir, Island continued to advance its broader antiviral pipeline, including strengthening intellectual property around ISLA-101 with a Singapore patent covering treatment of flavivirus infections including Dengue and Chikungunya.
