The Offer

Company Overview

GDTC is a pre-clinical biopharmaceutical firm with the goal of developing innovative cell-based immunotherapies for the treatment of human malignancies by utilizing its licensed unique technology. The clinical effectiveness of existing CAR-T in treating hematological malignancies as well as the present clinical constraints and commercial obstacles in transferring the CAR-T principle into therapy of solid tumors have served as inspiration for the development of its unique technologies.

Key Highlights

Primary Offering: The firm is issuing 2,412,369 shares along with an additional 361,855 shares to the underwriter, who will have a 45-day option to acquire all these extra shares at the initial offering price less the underwriting discount.

Use of proceeds:

Following the completion of the remittance process, GDTC plans to use the net proceeds of the offering in the following ways:

• Approximately USD 2 million or 21.5% to advance the clinical development of CTM-N2D, including the CTA application, the beginning of a Phase I clinical trial, and up to the stage of commencing a Phase II clinical trial.
• Approximately USD 2 million or 21.5% to continue technology development of iPSC-gdNKT.
• About USD 1 million, or 10.7% of the total, will be used to advance the clinical development of CTM-GDT, including the CTX application, for a Phase I clinical trial in Malaysia.
• The remaining money will be used to finance additional R&D initiatives, manufacturing expansion, working capital, and general corporate goals.

Dividend policy: On its ordinary shares, GDTC has never declared or paid any cash dividends, and it presently has no plans to do so soon either. To finance the expansion and improvement of its company, GDTC now aims to keep all cash on hand and any potential future earnings. Any future decision to declare and pay cash dividends shall be determined at the discretion of the Board, subject to applicable laws and organizational documents. If there are any cash dividends on the common shares, they will be paid in US dollars.

Cell Therapy Industry in Singapore and Malaysia: There are now just a few biopharmaceutical firms operating in the field of cellular immunotherapy for the treatment of cancer in Singapore and Malaysia, where the cell therapy sector is still in its infancy. In March 2021, Singapore authorized Kymriah®, a CAR-T therapy developed by Novartis (Singapore) Pte Limited. This is the first and only CAR-T treatment that has received commercial approval in Singapore, and it is now being used to treat certain types of B-cell malignancies.

Financial Highlights (Expressed in USD):

• Pre-revenue status: Since its establishment, GDTC has not made any money and does not anticipate doing so anytime soon via the selling of goods in commerce. GDTC has no medicinal treatments that have been authorized for commercial sale as of the date of this prospectus. In the future, GDTC may make money from a mix of product sales and payments from collaborations, depending on whether the development activities for one or more of its product candidates are successful and lead to regulatory clearance or whether GDTC has entered partnership with third parties.
• Increased other operating income: Other operating income increased from SGD 49,405 for the six months ended June 30, 2021, to SGD 149,570 (approximately USD 107,581) for the six months ended June 30, 2022. This increase was primarily brought on by an increase in the government grant income of SGD 50,000 (approximately USD 35,963) from Enterprise Singapore under the Startup SG Tech - Proof-of-concept, a program to aid the Company in developing and commercializing its innovations.

Key Management Highlights

Risk Associated (High)

Investment in the IPO of “GDTC” is exposed to a variety of risks such as:

• Limited Business History: As of the date of this Prospectus, GDTC is a pre-clinical biopharmaceutical development stage firm without any drugs that have been authorized for commercial sale. The technology utilized by GDTC, which focuses on generating human cells as therapies, is new and untested. As a result, GDTC lacks a significant operating history upon which the company's operations and prospects may be assessed. As a result, predictions regarding the company's future success or viability might not be as accurate as they might be if GDTC had a longer operating history or a history of successfully developing and marketing pharmaceutical products.
• Failure of clinical trials risk: The outcomes of any early-stage clinical trials that GDTC initiates may not be indicative of the outcomes of later-stage clinical trials, and the outcomes of pre-clinical studies may not be predictive of the outcomes of clinical trials in the future. Pre-clinical models used for cell therapy in oncology, for instance, are not sufficiently representative of the clinical setting, making it difficult to always predict clinical activity accurately, identify all potential risks, and offer adequate guidance regarding the proper dose or administration schedule for a given therapy. Moreover, the findings of clinical studies that are initially successful might not be predictive of the outcomes of later trials.
• Over-dependence on current products candidates: The business of GDTC is heavily dependent on the performance of its product candidates, particularly CTM-N2D, iPSC-gdNKT, and CTM-GDT, and GDTC may not be able to effectively develop these products or secure regulatory clearance for them.

Conclusion

Cytomed Therapeutics Limited is a pre-clinical stage company and has not generated any revenue from the sale of its products. As of the date of this prospectus, GDTC has no medical therapies that have been approved for commercial sale.

Due to a rise in other operating income and a decrease in other losses, which were largely offset by an increase in operating expenditure, the net loss attributable to shareholders declined.

Further, there is a lot  of uncertainties around the outcome of the product testing. The performance of GDTC's product candidates, notably CTM-N2D, iPSC-gdNKT, and CTM-GDT, has a significant impact on the company's financial health in upcoming future, and there is risk associated that GDTC not able to successfully develop these products or obtain regulatory approval for them.

Hence, given the financial performance of the company, pre-revenue status, reduced net loss, industry analysis, use of proceeds, and associated risks “Cytomed Therapeutics Limited (GDTC)” IPO seems “Neutral" at the IPO price.