Incannex (ASX:IHL) share price flat after earnings report

Shares in the medicinal cannabis company remain in the starter block today despite progress detailed in its quarterly results.

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The Incannex Healthcare Ltd (ASX: IHL) share price has remained flat in this morning’s trade, without any excitement either way.

Incannex shares haven’t budged despite the healthcare company providing an update on its progress for the quarter ending 30 June 2021.

At the time of writing, the Incannex share price is 25 cents, in line with the market open.

Let’s take a closer look at what the company released.

Quick refresher on Incannex Healthcare

Incannex is a clinical-stage medicinal cannabis company. It has four significant clinical programs for its products underway in pursuit of regulatory approval in the US.

These programs cover conditions such as sleep apnoea (OSA), traumatic brain injury (TBI) and temporomandibular joint disorder (TMJD).

At the time of writing, Incannex has a market capitalisation of $267 million.

Quarterly results

Incannex achieved several progress points across the most recent quarter, as detailed in the report.

Firstly, it realised a total of $133k in cash inflow “associated with the sale of unregistered cannabinoid oils”.

This was offset by a net cash outflow of $2.175 million that was designated for research and development (R&D) expenditures.

Additionally, the company completed its clinical trial protocol for “psilocybin-assisted psychotherapy” in the treatment of generalised anxiety disorder.

Incannex advised that recruitment of therapists for this program would be finalised and their training commence in the upcoming quarters.

Moreover, the company engaged with the University of Western Australia “as an additional site” to its phase 2b clinical trial investigating its products in OSA.

Earlier in July, the company had filed an international patent application for these formulations in the United States, European Union, Japan and Australia.

In addition, Incannex also expanded its clinical program to examine the effects of its products in inflammatory conditions such as bronchitis, rheumatoid arthritis and inflammatory bowel disease.

Furthermore, the company is investigating the delivery of its oils via gel capsules in a clinical trial, engaging Procaps S.A, a “GMP compliant manufacturer”, to produce its capsules.

Incannex said Procaps had the capacity to “quickly ramp up production to commercial quantities” should the clinical trial be successful.

Finally, Incannex has also entered into a collaboration with Vectura Ltd to develop the “formulation” of one of its compounds, to be “used in clinical trials” against TBI.

Incannex share price snapshot

The Incannex share price has posted a year to date return of 61%, extending the previous 12 month’s return of 267%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of ~23% over the past year.

Additionally, the Incannex share price has climbed ~6 over the past 1 month.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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