Why is the Incannex share price spiking 8% on Tuesday?

The stock has caught a bid on Tuesday.

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Key points
  • Incannex shares have lifted today following the release of a company presentation
  • In it the company gave an in depth view of its assets and operations, including the value proposition at hand
  • In the last 12 months the Incannex share price has clipped a 5% gain

The Incannex Healthcare Ltd (ASX: IHL) share price has jumped from the opening gate on Tuesday.

At the time of writing, Incannex was trading nearly 8% higher at 28 cents a share following the release of a company presentation.

It's a welcome gain for the medicinal cannabis company which has seen its share price plunge 55% over the past few months.

The chart below shows the Incannex share price plotted against the S&P/ASX 200 Index (ASX: XJO) for the past 12 months of trading.

TradingView Chart
A Cronos Australia farmer and ASX cannabis shares investor stands in a field of cannabis plants and smiles at the camera

Image source: Getty Images

What did Incannex release?

The company posted an overview of its assets, operations, and unique value proposition in the presentation released today.

Incannex described its intellectual property's "six categories of opportunity".

The company said it covers a potential $290 billion addressable market estimate for its lead drug candidates and $2 billion per year in potential revenue from psychedelic treatment therapies.

One of Incannex's lead drug candidates is IHL-42X, indicated in the treatment of obstructive sleep apnoea (OSA).

The OSA devices market is valued at US$10 billion, Incannex said, and it's projected to grow at 6.2% annually.

The drug candidate has made inroads in providing a novel solution to OSA, with data from clinical trials holding up well from a safety and efficacy standpoint.

So much so, the patent application for the drug "was considered 'novel and inventive' by [the] international patent examiner", Incannex said.

Incannex also noted it had a cash position of $37.5 million as of 30 June 2022 after raising $24 million in an equity raising in Mary 2022.

Those shares were issued at 35 cents a piece, a decent notch above the company's current share price.

The Incannex share price has clipped a 4% gain these past 12 months.

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.

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