Invion (ASX:IVX) Surges 20% on Non-Dilutive Funding for Cancer Program

Invion Secures Non-Dilutive Backing to Advance Cancer Therapy

Invion (ASX:IVX) saw a sharp rerating today, with the share price rising 20% following the announcement of potential non-dilutive funding that meaningfully changes the near-term risk profile of the business.

Rather than issuing new shares to advance its oesophageal cancer program, Hanlim Pharm will fund the required preclinical and regulatory work, with part of these costs expected to be reimbursed through a grant from the Korea Drug Development Fund. The total work program is estimated at up to A$2M, and the possibility of progressing a key asset without an equity raise is a clear positive in our view.

For small-cap biotech companies, equity dilution is often the highest hidden cost for shareholders. Advancing assets without issuing stock not only extends cash runway, but also preserves per share value and improves long-term upside if clinical progress continues.

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How Photo Dynamic Therapy Works

Photo Dynamic Therapy (PDT) is a medical treatment that uses two key components, a light-activated drug (called a photosensitiser) and a specific wavelength of light.

Here’s how it works: the photosensitiser is administered to the patient, either applied to the skin or delivered intravenously (IV). This drug then naturally accumulates in cancer cells or infected tissue, where it remains inactive until exposed to light.

Doctors then shine a controlled light of a specific colour (wavelength) onto the targeted area. When the photosensitiser absorbs this light, it triggers a chemical reaction that produces a highly reactive form of oxygen. This oxygen effectively destroys the targeted cells, killing the cancer or infection while minimising damage to surrounding healthy tissue.

The 2-stage clinical trial

The announcement outlines a clear two-stage development pathway, which we view as both logical and appropriately paced for a program at this point. Stage one focuses on efficacy validation, where data is collected to assess how the drug performs and how cancer models respond to treatment.

The objective here is to demonstrate that the intravenously administered therapy is effective in oesophageal cancer animal models. This stage is expected to be completed by the first half of FY26 and represents the earliest step in establishing proof of concept, which is a critical inflection point for any biotech asset.

Stage two then moves into clinical trial preparation, shifting the focus from efficacy to readiness for human studies. This phase will cover stability and toxicity testing to understand how the body responds to the drug, alongside manufacturing and formulation work to ensure it can be produced to clinical standards.
Completion is targeted for the second half of next year. From an investor perspective, this staged approach reduces execution risk by breaking development into measurable milestones, while allowing Invion to progress toward human trials without the immediate need for dilutive capital.

Why does oesophageal cancer matter

Oesophageal cancer is frequently diagnosed at a late stage, and that reality drives both poor outcomes and a clear unmet medical need. Late diagnosis is associated with a survival rate of just 21%, largely due to the limited effectiveness of existing treatment options.

From an investment perspective, this underlines why the commercial opportunity is meaningful. The global market is estimated at around US$15B today and is projected to grow to approximately US$36B by 2035, reflecting both rising incidence and the lack of effective therapies.

This dynamic materially strengthens the opportunity for Invion. Areas of high unmet need tend to attract regulatory focus and clinical urgency, and programs that show credible early efficacy are often prioritised.

If Invion can demonstrate meaningful progress, it positions the company in a space where medical demand, regulatory support, and long-term value creation are closely aligned.

The Investors Takeaway for IVX

For investors, this remains a speculative opportunity. Invion is still at the proof of concept stage, and the upcoming efficacy results from stage one represent a clear inflection point for the stock. This will be the next major catalyst for any meaningful rerating, but it also sets a high bar.

The data will need to be clearly positive to justify increased confidence in the program. While the upside is undeniably large if efficacy is demonstrated, it is equally important to recognise the risks. Trial execution remains critical, and despite the benefit of non dilutive funding at this stage, the company is likely to require additional capital in the future to support ongoing operations and later stage development.

This is a classic early stage biotech risk reward profile, where potential returns are significant, but only if execution and clinical outcomes align.