Why Invion (ASX:IVX) is leaning on director loans and partner funding as its Photosoft skin cancer trial widens

Sonal Goyal

16 October 2026 11:02 PM AEDT

Why Invion (ASX:IVX) is leaning on director loans and partner funding as its Photosoft skin cancer trial widens

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

A Safety Review Committee approved extending Invion's non-melanoma skin cancer trial into basal cell carcinoma.
Invion held A$592,000 in cash at 30 June 2026 and reported a FY2026 loss of A$5.63 million.
On 29 September 2026 the company announced two unsecured director loans of up to A$200,000 each.

Invion (ASX:IVX) is an Australian biotechnology company developing Photosoft, a photodynamic therapy platform in which light-activated compounds are used to treat or image diseased tissue. Its scientific progress and its funding are moving in parallel, but not at the same pace. A skin cancer trial has been widened, yet Invion's cash balance is small, and on 29 September 2026 it arranged loans from two of its own directors to cover working capital.

What Invion does and its stage

Invion's lead compound, INV043, is a topical photosensitiser. Its FY2026 annual report, lodged on 26 August 2026, states that the company holds a perpetual, exclusive global licence to Photosoft for agreed human and animal health uses. No product has been approved by a regulator, and Revenue is small, at A$384,707 for FY2026 compared with nil a year earlier.

Latest developments

By 22 April 2026 a Safety Review Committee had approved extending the non-melanoma skin cancer trial from squamous cell carcinoma into basal cell carcinoma. Preliminary data from six squamous cell patients showed no adverse effects or pain and a statistically significant reduction in lesion size, with some lesions fully resolving; durability is still being assessed. Results from such a small group are early signals rather than proof of efficacy.

On 19 May 2026 Invion announced a Partnership with South Korea's SANGMYUNG Innovation, which will fund and run preclinical proof-of-concept work on Photosoft compounds in retinal vascular disease, including wet age-related macular degeneration. Invion retains all Photosoft rights. The Annual Report also records funding of up to A$2 million from Hanlim Pharm and Korea's KDDF for preclinical and regulatory work on intravenous INV043 in oesophageal cancer.

Cash, burn and funding

The June 2026 quarterly report, released on 31 July 2026, showed cash of A$592,000, up from A$395,000 a quarter earlier. Net operating outflow was A$441,000, or A$2.34 million for the year to date, with customer receipts of A$183,000. Financing inflow of A$662,000 came from the second Tranche of a convertible note offering. The company said it expects at least about A$440,000 from R&D tax incentive claims and can slow clinical progress to match its cash. The Appendix 4C implied about 1.34 quarters of funding, based on cash divided by operating outflow.

The annual report shows a FY2026 loss of A$5.63 million, down from A$8.81 million, and includes an auditor's paragraph on material uncertainty relating to going concern.

The two loans announced on 29 September 2026, each of up to A$200,000, come from Executive Chair and CEO Prof Thian Chew and non-executive director Alan Yamashita. They are unsecured and carry 8 per cent annual interest, a 2 per cent upfront fee and a four-month maturity. The lenders may elect to convert into shares at A$0.05 each, subject to Shareholder approval. Milestone shares under the Photosoft licence, up to 36.7 million in total with 12.2 million issued in June 2026, add to potential dilution.

Sector context and risks

Early-stage oncology developers typically face long timelines and repeated capital raisings. The annual report also notes that the 2026-27 Federal Budget proposed changes to the R&D Tax Incentive from 1 July 2028. These are not legislated, but the refundable offset is a material funding source for Invion.

What's Next

A planned anogenital trial with Peter MacCallum Cancer Centre has been described as a future milestone, with no start date given. The company has not announced other confirmed dates, leaving the director loans, R&D tax refunds and partner funding as the main supports for its near-term program.

FAQs

Q:What is Photosoft?

A:Photosoft is a photodynamic therapy platform in which light-activated compounds are used to treat or image diseased tissue. Invion holds a perpetual, exclusive global licence to it for agreed human and animal health uses.

Q:What are the terms of Invion's director loans?

A:Two unsecured loans of up to A$200,000 each carry 8 per cent annual interest, a 2 per cent upfront fee and a four-month maturity, and may be converted into shares at A$0.05 each subject to shareholder approval.

Q:How much cash did Invion hold at 30 June 2026?

A:Invion reported cash of A$592,000 at 30 June 2026, up from A$395,000 a quarter earlier.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.