'World's largest portfolio': Why this ASX cannabis share is up 36% in August

Investors have rewarded recent news.

Key points
  • Incannex shares have spiked in August following a key update
  • The company has executed a transaction outlined earlier in the year
  • Incannex is still down 56% on the charts this YTD

ASX cannabis share Incannex Healthcare Ltd (ASX: IHL) has caught a bid last week, reversing off 52-week lows to now trade 36% higher on the month.

Just after the open on Monday, Incannex is priced at 27.5 cents – not far off its yearly low of 19 cents on 1 August.

A little boy surrounded by green grass and trees looks up at the sky, waiting for rain or sunshine.

Image source: Getty Images

What's boosting this ASX cannabis share?

Last week Incannex advised it had finalised the acquisition of APIRx Pharmaceuticals after the pair signed binding terms back in March this year.

CEO and managing director of Incannex, Joel Latham, said the company was "excited" to get the ball rolling on the deal.

"After extensive due diligence and corporate strategy assessments of the APIRx assets," he said, "we are excited and readied to commence development activities over our newly acquired portfolio of drug candidates."

As a result of the transaction, 22 additional clinical and pre-clinical projects have been transferred onto Incannex's books.

The company says this represents an aggregate addressable market of US$400 billion per annum.

As a result, Incannex says it now has the "world's largest portfolio of patented medicinal cannabinoid drug formulations and psychedelic treatment protocols".

This involves an intellectual property portfolio covering 19 granted patents and 23 pending patents, the company says.

Incannex share price snapshot

Investors rallied behind the ASX cannabis share last week. They sent it surging back into the green, bouncing off its 52-week low in the process.

The Incannex share price has now jumped more than 36% in the first week of August. This brings total losses to the year back to 56%.

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 Scott Phillips.

More on Healthcare Shares

A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.
Healthcare Shares

ResMed vs Fisher & Paykel Healthcare: Which is better value?

How do ResMed and Fisher & Paykel compare on value, income, and share price momentum? Here’s my verdict on which…

Read more »

Happy doctor using her laptop.
Healthcare Shares

CSL unveils exclusive Alentis deal to advance rare disease treatments

CSL unveils a major partnership for rare disease drug development, enhancing its global nephrology strategy.

Read more »

Doctor sees virtual images of the patient's x-rays on a blue background.
Healthcare Shares

Could this ASX biotech really jump more than 80% in value?

This company's new technology has one broker impressed.

Read more »

Teamwork, planning and meeting with doctors and laptop for medical, review and healthcare. Medicine, technology and internet with group of people for collaboration, diversity and support in hospital
Healthcare Shares

CSL vs Pro Medicus: Which ASX healthcare share is better?

Both CSL and Pro Medicus have faced recent challenges but have enviable long-term track records. Here's which one I'd buy…

Read more »

Scientists working in the laboratory and examining results.
Healthcare Shares

This ASX biotech could rise almost 50%, Morgans says

Turning science into contracts could unlock value for this company.

Read more »

Doctor with stethoscope using a tablet in a hospital.
Healthcare Shares

Telix Pharmaceuticals wins FDA Fast Track for BiPASS prostate cancer imaging

Telix Pharmaceuticals shares are in the spotlight after the FDA granted Fast Track for its BiPASS pre-biopsy prostate cancer imaging…

Read more »

Three scientists looking at a laptop in a lab.
Healthcare Shares

What would it take for CSL shares to return to $250?

The shares have already recovered strongly, so I wanted to see whether $250 is realistic.

Read more »

Doctor with stethoscope typing on her computer.
Healthcare Shares

Is the ResMed share price a cheap buy?

I look at what the next few years of earnings growth could mean for today’s valuation.

Read more »