Medical Innovations and Portfolio Gains

• The Fund rose by 10.4% in July, driven by significant gains in several portfolio companies focused on medical advancements.
• The Fund invested in Oncosil Medical, whose shares rose 100% in July. Oncosil’s innovative radiation therapy for pancreatic cancer shows promising results in improving surgical resection rates and patient survival.
• Other key portfolio companies, such as Clarity Pharmaceutical and IperionX, saw significant gains due to strategic agreements and advancements in their respective fields, including prostate cancer treatment and titanium recycling.

Top Holdings (alphabetically)

Brazilian Rare Earths Ltd.

Australia

Materials

Brazilian Rare Earths Ltd. operates as a mineral exploration company. It focuses on the discovery and development of mineral resources in Brazil. The company was founded on March 3, 2021 by Bernardo da Veiga and is headquartered in Sydney, Australia.

Clarity Pharmaceuticals Ltd

Australia

Health Care

Clarity Pharmaceuticals Limited operates as a radio-pharmaceutical company. The Company focuses on the developing targeted therapies for the treatment of cancer and other serious diseases. Clarity Pharmaceuticals serves customers worldwide.

Genetic Signatures Ltd

Australia

Health Care

Genetic Signatures Ltd. is a research company, which engages in the identification and commercialization of individual genetic signatures for the diagnosis of infectious diseases. It is also involved in the sale of associated products into the diagnostic and research marketplaces. Its products include the treatment for gastrointestinal infections, respiratory, sexual health, anti-microbial resistance, meningitis, and tropical disease. It operates in the following geographical segments: Asia Pacific, Europe, Middle East, and Africa (EMEA), and Americas. The company was founded by Robert J. Birrell, Christopher M. Abbott, and Geoffrey Grigg on February 15, 2001 and is headquartered in Newtown, Australia.

IperionX Ltd

Australia

Materials

IperionX Ltd. engages in the development of low carbon titanium for advanced industries, including space, aerospace, electric vehicles and 3D printing. It produces titanium metal powders from titanium scrap at its operational pilot facility in Utah and intends to scale production at a Titanium Demonstration Facility in Virginia. The company was founded on May 5, 2017 and is headquartered in Charlotte, NC.

Iperionx Ltd. Sponsored ADR

United States

Materials

IperionX Limited focuses on sustainable mineral and material supply chains. The Company develops low carbon titanium for advanced industries including space, aerospace, electric vehicles, and 3D printing. IperionX serves customers worldwide.

Pancreatic cancer is an area that has seen little improvement in survival over the last 40 years. Two companies in our portfolio are focused on improving outcomes for patients with this terrible disease.  We invested in one of them, Australian-listed Oncosil Medical, during the month via a placement of shares and options. The shares subsequently rose 100% by month end, although the options were not received until the 8th of August when an updated prospectus was issued.

Oncosil has developed radiation therapy microparticles which are injected into pancreatic tumours under endoscopic ultrasound guidance. The particles emit radiation over an 80 day period. The objective is to shrink tumours enough to allow for surgical resection which leads to longer survival. Surgical resection rates have been shown to be about 24% in a small company study (but as high as 40% in hospital lead studies) compared to about 8.5% in a retrospective analysis of studies using chemotherapy alone, but further larger studies are required. Another benefit of the treatment is that it reduces pain which can be a significant issue for these patients. Oncosil’s treatment is only appropriate for patients with locally advanced cancer that hasn’t spread to other organs, which represents 20-30% of total patients.

The product is already approved in Europe but a new European label is expected this year along with humanitarian device exemption approval in the US. German health insurance subsidies for the product are also expected to be a major catalyst later this year.

Australian-listed prostate cancer radiation therapy company Clarity Pharmaceutical rose 17% after agreeing to an Actinium 225 isotope supply agreement with Bill Gates backed US nuclear firm Terra Power. Actinium 225 is considered an exciting medical isotope as it delivers a high amount of radiation but over very short distances, which should make it more targeted than other isotopes. So far Clarity is only the second customer whom Terra Power has signed. Clarity is currently focused on the Copper 67 isotope in its clinical studies but given the large amount of M&A recently in Actinium related therapeutic companies, this may make Clarity a more attractive acquisition.

IperionX rose 12% after signing a deal with Aperam, an affiliate of Arcelor Mittal the world’s largest steel producer, to recycle up to 12 tonnes of titanium scrap produced from the consumer electronics sector to be turned into titanium powder used in various products. We note that currently companies such as Apple, Samsung, and Huawei are all producing premium titanium cased smart phone models. The current Kroll process cannot easily recycle titanium so consumer electronic companies wishing to provide products that are recycled may need to consider partnering with IperionX in future. IperionX’s process is also less carbon intensive, which may also be desirable for companies wishing to market products with lower imbedded carbon emissions.

Australian listed molecular testing company Genetic Signatures rose 11% after releasing quarterly results, which highlighted strong sales of its influenza PCR test in Australia due to high levels of the virus circulating. We expect this strength to continue into the September quarter before flu season falls away. The newly FDA approved enteric (gut bug) test should ramp up in the US in the December quarter.

Australian heart valve producer Anteris fell 16% after completing a $30mln capital raising.  Brazilian Rare Earths, Opthea, and Alta Global also fell on little news.