Down 25% in a month, the Incannex share price is now halted. Here's why

A key update awaits the market from Incannex.

| More on:
A dollar sign embedded in ice, indicating a share price freeze or trading halt

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Incannex Healthcare shares are on the backburner today pending a company announcement 
  • Prior to the halt they were resting at 38 cents apiece. The company intends to release readouts from a recent clinical trial 
  • In the last 12 months, the Incannex Healthcare share price has held a 24% gain 

Shares of Incannex Healthcare Ltd (ASX: IHL) are on ice today pending a company announcement. Before being placed on the backburner, the Incannex share price rested at 38 cents apiece.

Zooming out, shares of the cannabis player have faltered more than 39% this year to date, amid a violent selloff in growth-type shares in 2022.

In wider market moves, the S&P/ASX 200 Health Care Index (ASX: XHJ) has crumbled today and is now more than 3% in the red, bringing losses to 12% this year.

Meanwhile, in the US, the Nasdaq Composite Index (Nasdaq) fell sharply overnight, marking its largest single-day drop since 2020.

Investors sold off shares in the tech-biased Nasdaq after US Federal Reserve chair Jerome Powell raised the Fed's base interest rate by 0.5 percentage points, in an effort to control inflationary pressures.

Why is the Incannex share price halted?

The company requested its shares be put on ice in lieu of a market-sensitive announcement regarding upcoming study readouts.

"[Incannex] requests a trading halt to be applied to its securities…pending an announcement by the company regarding results of its extensive preclinical study assessing IHL-216A in a sports concussion model," it said in the filing.

"The Company requests that the trading halt remains in place until the earlier of the commencement of normal trading on May 10, 2022 or the release of the announcement."

Naturally the ASX awarded Incannex its request and, as such, investors must now wait until the company posts its next update on or before May 10.

Earlier in the year, investors appeared rattled by Incannex's decision to acquire APIRx Pharmaceutical USA, LLC for US$93 million.

Even though it now claims a total addressable market of more than US$400 billion globally, investors didn't appear as thrilled.

As such, losses have continued into May and shares have stooped from a high of 70 cents in March.

Incannex Healthcare share price snapshot

In the last 12 months, the Incannex Healthcare share price has held a 24% gain. However, it has collapsed into the red on each of the shorter time frames.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position 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.

More on Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

CSL share price leaping higher amid $1.9 billion funding news

ASX 200 investors are bidding up the CSL share price on Wednesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »

a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.
Healthcare Shares

Guess which ASX 200 healthcare share is jumping 7% on a guidance update

This healthcare share is performing better than expected in FY 2024.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

1 ASX healthcare stock that looks severely undervalued

I think this stock looks too cheap to miss.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Own Medibank shares? Here's why it's a rewarding day for you

Shareholders are getting a healthy boost today.

Read more »

Health professional looking at a laptop.
Healthcare Shares

Are CSL shares a must-buy in March?

Let's see what analysts are saying about this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

This ASX healthcare stock is up 72% on FDA news and 'historic moment'

Huge gains are been recorded by this stock on Tuesday. But why?

Read more »