Percheron Therapeutics — HMBD-002 Phase II preparations remain on track

Percheron Therapeutics (ASX: PER)

Last close As at 24/08/2026

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Research: Healthcare

Percheron Therapeutics — HMBD-002 Phase II preparations remain on track

Percheron Therapeutics’ update for the quarter to 30 June confirmed that Phase II preparations for HMBD-002 (provisional name: minperstobart) remain on track. GMP drug substance manufacture is complete and final drug product is expected to be released in September 2026, supporting our Q4 CY26 Phase II initiation assumption. The A$2.2m entitlement offer lifted the end-Q2 CY26 cash to A$4.05m (end-Q1 CY26: A$3.10m), modestly ahead of our A$3.8m estimate. Quarterly operating cash burn was A$1.05m, including R&D expenses of A$0.43m. While the company reports a 3.9-quarter runway based on the pre-trial expenditure rate, this excludes the remaining US$1m (c A$1.4m) licence payment to Hummingbird Bioscience and the expected increase in spending once Phase II begins. We therefore continue to estimate funding into Q1 CY27, sufficient to initiate the trial, but with additional capital required to advance and complete the study. With no material change to our assumptions, we retain our A$84.4m, or 5.5c per share, valuation. We expect the September drug-product release and Q4 CY26 trial initiation to be the key upcoming catalysts.

Jyoti Prakash

Written by

Jyoti Prakash, CFA

Director, healthcare

Pharma and biotech

Quarterly update

4 August 2026

Price AUD0.003
Market cap AUD5m

US$/A$1.43

Net cash/(debt) at 30 June 2026

AUD4.1m

Shares in issue

1,522.4m
Free float 56.0%
Code PER
Primary exchange ASX
Secondary exchange N/A
Price Performance

Business description

Percheron Therapeutics is a clinical-stage biotech advancing HMBD-002, a differentiated VISTA-targeting checkpoint inhibitor with potential to address PD-1 resistance across a range of cancer indications. HMBD-002 has completed a Phase I clinical trial in patients with advanced cancer, with favourable safety and tolerability. The Phase II trial is expected to commence in Q4 CY26.

Analysts

Jyoti Prakash, CFA
+44 (0)20 3077 5700
Arron Aatkar, PhD
+44 (0)20 3077 5700

Percheron Therapeutics is a research client of Edison Investment Research Limited

Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (AUDm) PBT (AUDm) EPS (AUD) DPS (AUc) P/E (x) Yield (%)
6/24 2.4 (11.7) (1.33) 0.00 N/A N/A
6/25 1.4 (13.4) (1.31) 0.00 N/A N/A
6/26e 0.0 (5.8) (0.38) 0.00 N/A N/A
6/27e 0.9 (7.2) (0.47) 0.00 N/A N/A

Percheron’s quarterly activities report highlighted continued operational progress ahead of the planned start of the Phase II study. Completion of drug substance manufacture in June 2026 by Hummingbird (under the 2025 licence) removes a key manufacturing risk and Percheron will now undertake fill-and-finish activities, with final drug product expected to br released in September. This is consistent with previously communicated timelines and supports our assumption of Phase II initiation in Q4 CY26. Importantly, future manufacturing responsibility transfers to Percheron, so successful delivery of this final step would demonstrate growing operational ownership as the programme enters mid-stage development.

The report recapped data presented at the American Association for Cancer Research (AACR) and the American Society of Clinical Oncology (ASCO). At AACR, Phase I analyses had supported a 720mg once-weekly Phase II dose, and the ASCO preclinical data showed that VISTA expression increased following chemotherapy and PD-1/PD-L1 blockade. This strengthens our expectation that triple-negative breast cancer will be prioritised in the adaptive basket study.

Supported by the A$2.2m raise in April 2026, Percheron exited the quarter with a net cash balance of A$4.05m (slightly ahead of our A$3.8m estimate). The reported 3.9-quarter runway is based on the pre-trial expenditure rate, and we believe this does not reflect the remaining US$1m (c A$1.4m) upfront licence payment to Hummingbird, which we model in July 2026, or the anticipated increase in spending following Phase II initiation. We therefore continue to estimate a cash runway into Q1 CY27. This makes capital availability and potential partnering important sensitivities. Nevertheless, timely Phase II initiation would represent a meaningful near-term inflection point and could support a re-rating. With the update broadly in line with our expectations, we maintain our valuation of A$84.4m, or 5.5c per share.

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