Onconetix, Inc. (NASDAQ:ONCO), a pharmaceutical company with a market capitalization of $4.48 million, has reached a settlement agreement with IQVIA, Inc., a provider of advanced analytics, technology solutions, and contract research services to the life sciences industry.
The settlement, announced on Wednesday, resolves potential termination payments related to a previously disclosed Licensing and Services Master Agreement and associated statements of work between the two companies. InvestingPro data shows the company faces significant cash burn challenges, with a concerning current ratio of 0.06.
According to the terms of the settlement, which was finalized on January 15, 2025, Onconetix has agreed to pay IQVIA a sum of $150,000. This agreement also includes a mutual release of all claims connected to the Master Services Agreement. As a result of the settlement, Onconetix will record an adjustment of approximately negative $0.9 million in its accounts payable. While currently undervalued, the company's financial health score of 1.13 indicates significant challenges, according to InvestingPro analysis.
The original Master Services Agreement and the first statement of work were signed on July 21, 2023, followed by a second statement of work on July 29, 2023. However, these agreements were terminated on October 12, 2023. The specifics of the settlement agreement were included as Exhibit 99.1 in the 8-K filing.
In a separate development reported on the same day, Proteomedix AG, a wholly-owned subsidiary of Onconetix, highlighted a recent study on Linkedin.com regarding the potential clinical benefits of Proclarix. Proclarix is intended for detecting and stratifying the risk of clinically significant prostate cancer (csPCa). The Linkedin post, which aims to promote the study, has been filed as Exhibit 99.2 in the 8-K report.
In other recent news, Onconetix has addressed a Nasdaq notice by filing an overdue quarterly report, enhancing transparency with its investors and compliance with market regulations. The company has also expanded its portfolio through the acquisition of Proteomedix. In addition, Onconetix has restructured its forbearance agreement with Veru (NASDAQ:VERU) Inc., modifying payment terms to secure additional financial flexibility.
Onconetix has also raised approximately $2 million through a private placement for working capital and general corporate purposes, setting the stage for potential sales of up to $25 million in common stock with an institutional investor. Furthermore, to address compliance challenges with Nasdaq's listing standards, Onconetix has implemented a reverse stock split and issued additional equity.
The company has deferred payments on a $15 million debt to Veru Inc., as per an amended agreement. Changes in the executive team have seen the departure of former CFO Bruce Harmon and the appointment of Karina M. Fedasz as the interim CFO.
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