Dimerix (ASX: DXB) Secures A$34 Million Clinical Funding Facility

Dimerix has secured binding loan agreements providing access to A$34 million from Australian and US-based lenders. The total includes its previously announced A$10 million facility with SKIPTAN.

The kidney-disease drug developer will initially draw 50% of committed funds, equal to A$17 million. Receipt is anticipated in September 2026.

Dimerix said existing cash and the loan commitments will fund its currently planned clinical activities. These include completing the ACTION3 Phase 3 trial of DMX-200 and advancing DMX-652 through a planned Phase 2 trial.

Funding Without an Equity Issue

The facility allows Dimerix to fund its development program without issuing shares under the current arrangements. However, the debt carries interest and gives lenders rights linked to future licensing milestones.

Interest is 10% annually, compounded each year, and applies only to funds drawn and received. Drawn principal and accrued interest must be repaid by January 17, 2028.

Dimerix can draw the remaining committed balance at its discretion before March 31, 2027. Any undrawn portion lapses after that date.

The company may also secure further commitments, lifting the facility total to A$50 million before March 2027. It said it currently has no plans to access that additional funding.

Chief Executive Officer Nina Webster said: “The successful entry into this facility provides Dimerix with the financial flexibility needed to execute our planned development activities without dilution for shareholders.”

Milestone Payments Form Part of the Cost

Lenders receive an unsecured aggregate right to 30% of each milestone payment under DMX-200 commercial licence agreements. That participation is capped at twice the amount Dimerix draws and receives.

Dimerix expects repayment to come from future licensee milestone payments, potential new licence fees, capital-market access, or a combination of these sources.

The company has five commercial partners across major markets. Those agreements have generated A$81 million in upfront payments and provide for another A$237 million in potential pre-launch development milestones.

Security applies to drawn principal and accrued interest for unrelated lenders. The SKIPTAN entities remain unsecured pending an ASX waiver or shareholder approval for equivalent security.

Clinical Programs Covered

DMX-200 is being tested in the fully recruited global ACTION3 Phase 3 trial for focal segmental glomerulosclerosis. The rare kidney disorder can progress to kidney failure, dialysis or transplantation.

DMX-652 is being developed for acute kidney injury following cardiac surgery. Its Phase 2 trial will assess whether the drug can prevent kidney injury and preserve renal function.

The funding assessment depends on Dimerix’s present spending plans, activities and exchange rates. Changes to those assumptions could materially affect the company’s stated cash runway.

The initial draw limits near-term interest expense because interest applies only to money received. Meanwhile, access to the undrawn balance preserves funding flexibility through March 2027.