Executive Summary / Key Takeaways

• Propanc Biopharma, Inc. ($PPCB) is a pre-revenue biopharmaceutical company developing a novel proenzyme therapy, PRP, to combat recurring and metastatic solid tumors, particularly pancreatic, ovarian, and colorectal cancers, by targeting cancer stem cells.
• The company's core technological differentiation lies in its "differentiation therapy" approach, which aims to reprogram cancer cells to a non-malignant state without harming healthy cells, offering a potentially superior safety profile compared to conventional treatments.
• Propanc recently achieved a significant milestone by uplisting to the Nasdaq Capital Market in August 2025 and completing a $4 million public offering, providing crucial capital for advancing its lead candidate, PRP, into a Phase Ib First-In-Human clinical study in 2026.
• A bold strategic move involves the planned acquisition of $100 million in Ethereum over the next 12 months, aiming to diversify assets, address cash flow needs during the pre-revenue phase, and accelerate future growth by leveraging the potential of digital assets.
• Despite a substantial net loss of $58.92 million in fiscal year 2025, primarily due to stock-based compensation, and a "Going Concern Qualification" from its auditors, the company's future hinges on successful clinical trial progression, effective capital allocation, and the realization of its dual-track strategy in both biopharma and digital assets.

A New Frontier in Cancer Therapy: Propanc's Proenzyme Promise

Propanc Biopharma, Inc. ($PPCB) is carving a distinct path in the challenging oncology landscape, focusing on a novel proenzyme therapy designed to prevent the recurrence and metastasis of solid tumors. The company's lead product candidate, PRP, represents a unique approach to cancer treatment, aiming to target and eradicate cancer stem cells in patients battling pancreatic, ovarian, and colorectal cancers. This foundational mission, established since its inception in 2007 as Propanc PTY LTD, underscores a long-term vision for non-toxic, long-term cancer management.

The company's journey has been marked by strategic research collaborations and intellectual property development. Early on, a partnership with the University of Bath laid the groundwork for its proprietary proenzyme formulations, with Propanc securing full ownership of this intellectual property by 2012. Subsequent collaborations with the University of Jaén and the University of Granada have focused on the synthetic development of PRP and understanding its effects on the tumor microenvironment, reinforcing a commitment to scientific innovation. A significant regulatory achievement was the U.S. FDA's Orphan Drug Designation for PRP in pancreatic cancer in June 2017, acknowledging the critical unmet need for this rare and aggressive disease.

Technological Edge: Reprogramming Cancer, Not Destroying Cells

Propanc's core technological differentiation lies in its "differentiation therapy," a paradigm shift from conventional cancer treatments. Instead of aggressively targeting and killing rapidly dividing tumor cells, which often harms healthy cells and leads to severe side effects, PRP aims to induce cancer cell differentiation. This process "convinces" malignant cells to cease proliferation and return to a more normal, differentiated state, eventually leading to senescence—a non-proliferative state. This approach is designed to leave healthy cells unharmed, a significant potential advantage over chemotherapeutic drugs or radiation.

PRP, an intravenous injection combining trypsinogen and chymotrypsinogen, works by reversing the epithelial-mesenchymal transition (EMT) process, which is crucial for cancer cells to become invasive and metastatic. By inhibiting EMT and promoting cell differentiation and adhesion, PRP aims to reduce the metastatic potential of tumors and prevent their spread. The therapy also influences key intracellular pathways like TGFβ, Hippo, Wnt, and Notch, which are implicated in cancer stem cell survival and metastasis. Preclinical studies have demonstrated PRP's ability to reduce cancer cell growth, enhance cell adhesion, and improve patient survival without observable serious side effects. A synergistic ratio of 1:6 of trypsinogen and chymotrypsinogen has shown efficacy in inhibiting the growth of various tumor cells, including pancreatic, ovarian, and colorectal cancers.

Further innovation is underway with the POP1 joint research and drug discovery program, which is developing Rec-PRP, a fully synthetic recombinant version of PRP. This initiative aims to produce large quantities of proenzymes with minimal lot variation, offering enhanced stability and a longer shelf life without refrigeration. Such advancements would be particularly beneficial for global distribution, especially in warmer climates and developing regions where cold chain logistics are challenging. The company anticipates commencing a pharmacology study for Rec-PRP in the first quarter of 2026, followed by safety toxicology studies to compare its efficacy and safety profile to the naturally derived PRP formulation.

Competitive Landscape and Strategic Positioning

The biopharmaceutical industry is intensely competitive, characterized by rapid technological advancements and significant resource requirements. Propanc faces formidable competition from major pharmaceutical and biotechnology companies such as Pfizer Inc. (PFE), Merck & Co., Inc. (MRK), Eli Lilly and Company (LLY), and Amgen Inc. (AMGN), all of whom possess substantially greater financial resources, established R&D infrastructure, manufacturing capabilities, and extensive market reach. These industry giants have broad oncology portfolios and a proven track record of bringing multiple cancer treatments to market.

Propanc's strategic positioning hinges on its differentiated scientific approach and its focus on unmet medical needs in aggressive solid tumors. While larger competitors often pursue broad-spectrum therapies, PRP's mechanism of inducing cell differentiation offers a unique value proposition, potentially leading to treatments with fewer side effects and a reduced likelihood of cancer cell resistance, a common challenge with conventional and targeted therapies. The company's research collaborations enable a more agile and focused R&D effort, potentially allowing for faster innovation cycles in niche areas compared to the resource-intensive approaches of its larger rivals.

However, Propanc's early-stage development and pre-revenue status represent significant competitive disadvantages. Its offerings are still in preclinical stages, while competitors have clinically advanced and widely available therapies. This necessitates substantial capital investment and carries inherent risks of clinical trial failures and delays. The company's ability to recruit and retain qualified scientific and management personnel, establish clinical trial sites, and secure patient enrollment also presents challenges when competing with well-resourced industry leaders. The global metastatic cancer market is projected to reach $111 billion by 2027, with the pancreatic cancer drug market expected to grow to $6.93 billion by 2030 and the ovarian cancer drug market to $13.90 billion by 2029. These substantial market opportunities underscore the high stakes and intense competition Propanc faces.

Financial Performance and Liquidity: A Development-Stage Profile

Propanc Biopharma operates as a development-stage company, reflected in its financial performance. For the fiscal years ended June 30, 2025, and 2024, the company reported no revenue, as its focus remains on research and development activities for market approval. This pre-revenue status is typical for early-stage biopharmaceutical firms, which require significant capital investment before commercialization.

The company reported a substantial net loss of $58.92 million for the fiscal year ended June 30, 2025, a significant increase from the $1.82 million net loss in the prior year. This amplified loss was primarily driven by a dramatic rise in administration expenses, which surged to $57.03 million in 2025 from $1.25 million in 2024. This increase of approximately $55.77 million was largely attributable to $37.80 million in stock-based compensation expenses to officers and an employee, and $18.17 million in stock-based consulting and legal services. Research and development expenses, conversely, saw a slight decrease to $223,721 in 2025, down by approximately $24,000, attributed to cost-cutting measures due to a lack of working capital.

As of June 30, 2025, Propanc's liquidity position was constrained, with cash totaling $12,088 and current liabilities of $5.58 million against total assets of $19.63 million. The company has an accumulated deficit of $125.62 million, highlighting the extensive investment required in drug development. The independent registered public accounting firm issued a "Going Concern Qualification" in its audit report for fiscal year 2025, indicating substantial doubt about the company's ability to continue operations for the next 12 months without additional funding.

Recognizing these capital requirements, Propanc successfully completed an underwritten public offering on August 18, 2025, selling 1.00 million shares at $4.00 per share, which generated $3.34 million in net proceeds. This capital infusion was immediately utilized to repay substantial outstanding promissory notes and related party loans, addressing immediate liquidity concerns.

Strategic Initiatives and Future Outlook

Propanc's strategic roadmap is centered on advancing PRP through clinical development and exploring innovative avenues for corporate growth and financial stability. The company plans to initiate its Investigational Medicinal Product Dossier, study proposal, and Investigators Brochure in 2025, contingent on securing sufficient financing. The goal is to commence the study preparation process, including selecting contract research organizations (CROs), analytical labs, and trial sites, and to compile the Clinical Trial Application (CTA) for PRP in the first calendar quarter of 2026. Submission of the CTA is anticipated in the first half of 2026, followed by logistics and trial site initiation visits in the second quarter of 2026.

Subject to raising additional capital, Propanc aims to launch a First-In-Human (FIH) Phase Ib study in patients with advanced solid tumors in the second half of 2026, with an estimated completion within twelve months. This will be followed by two 18-month, open Phase II studies, each evaluating PRP's safety and efficacy in up to 60 patients with locally advanced or metastatic pancreatic adenocarcinoma and advanced epithelial ovarian cancer who have failed prior therapies. If Phase II results are clinically significant, the company intends to pursue a direct pathway towards filing a Market Authorization Application (MAA) and Biologics License Application (BLA). Propanc anticipates reaching the Phase IIa proof of concept milestone in approximately three to four years, subject to regulatory approvals in the US, Europe, and Australia.

A notable strategic pivot for Propanc is its plan to acquire $100 million of Ethereum over the next 12 months. This multi-faceted strategy aims to diversify assets, address current cash flow needs during the pre-revenue stage, and accelerate future revenue growth. Management believes Ethereum offers advantages over Bitcoin, including support for smart contracts and decentralized applications, and its transition to a "proof of stake" consensus mechanism, which allows for faster and more energy-efficient transactions. The company intends to allocate most of the proceeds from its recent offering to holding Ethereum, with the remainder funding pharmaceutical drug development and IP asset acquisition opportunities. This move reflects a bold attempt to leverage the potential of digital assets to support its long-term biopharmaceutical objectives.

Risks and Challenges

Investing in Propanc Biopharma entails significant risks, primarily due to its early-stage development and the inherent uncertainties of the biopharmaceutical industry. The "Going Concern Qualification" highlights the critical need for continuous financing to sustain operations and advance its drug candidates. The company's ability to raise additional capital on reasonable terms is paramount, as a failure to do so could materially impact its business plan and ongoing R&D programs.

Operational risks include the ability to successfully remediate material weaknesses in internal controls, particularly the lack of written documentation for policies and procedures and insufficient segregation of accounting duties. These weaknesses could affect the accuracy and timeliness of financial reporting. Furthermore, the high failure rate of experimental drugs in clinical trials—with only about 5% reaching the market—underscores the substantial scientific and regulatory hurdles Propanc must overcome.

The strategic move into digital assets, while potentially offering diversification and growth, introduces new risks associated with cryptocurrency market volatility and regulatory uncertainties in the digital asset space. The company's reliance on outsourcing for R&D activities also presents risks related to third-party performance and control.

Conclusion

Propanc Biopharma, Inc. stands at a pivotal juncture, poised between the high-stakes world of novel cancer drug development and an unconventional foray into digital asset diversification. The core investment thesis rests on the potential of its unique proenzyme therapy, PRP, to offer a safer and more effective treatment for solid tumors by targeting cancer stem cells through differentiation therapy. This technological leadership, backed by a growing patent portfolio, represents a compelling long-term opportunity in a vast and underserved oncology market.

The recent Nasdaq uplisting and capital raise provide a critical lifeline, enabling the company to advance PRP into human clinical trials. However, the path forward is fraught with challenges, including significant financial requirements, operational improvements, and the inherent risks of clinical development. The strategic acquisition of Ethereum, while a bold and potentially high-reward move, adds another layer of complexity and risk. For discerning investors, Propanc Biopharma represents a high-risk, high-reward proposition, where the successful execution of its dual-track strategy and the validation of its innovative proenzyme technology in clinical settings will be the ultimate determinants of its long-term value creation.