Have Incannex Healthcare shares been a good investment in 2022?

We check what's been happening with the ASX cannabis share lately.

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Key points
  • The Incannex share price has taken a battering, losing half its value in 2022 so far
  • The ASX cannabis share is now included in the ASX 300 
  • In FY22, Incannex recorded a net loss of almost $15 million

The Incannex Healthcare Ltd (ASX: IHL) share price has had a tough 2022, losing 50% of its value year to date.

That's far lower than the S&P/ASX 200 Health Care Index (ASX: XHJ), which is down 5.24% for the same period.

However, Incannex is not alone among ASX cannabis shares. Emyria Ltd (ASX: EMD) has shed 42% while Creso Pharma Ltd (ASX: CPH) is down more than 60% so far this year.

Let's make sense of what may have impacted Incannex's performance lately

two men in formal business clothing closely inspect a bud from a cannabis crop.

Image source: Getty Images

What's going on with Incannex Healthcare?

The company is now included in the S&P/ASX 300 Index (ASX: XKO) as part of S&P Global's quarterly rebalancing that took place at the beginning of the month.

In August, Incannex also completed its acquisition of APRIx Pharmaceuticals for US$93.3 million after the companies reached an agreement in March this year.

When the deal went through, Incannex claimed it now held "the world's largest portfolio of patented medicinal cannabinoid drug formulations and psychedelic treatment protocols".

Earlier in August, Incannex released an investor presentation giving an overview of its operations and other aspects of the business.

At that time, it noted it had an estimated $290 billion total addressable market for its lead drug candidates and another $2 billion per year in potential revenue from psychedelic treatment therapies.

And finally, the company posted its results for FY22, noting that its net loss from ordinary activities increased 31% to $14.9 million from the prior reporting period while also recording no revenues.

Icannex share price snapshot

The Icannex share price finished 6.78% higher today at 31.5 cents, a long way from its 52-week closing high of 73 cents in early March.

The company's current market capitalisation is around $479 million.

Motley Fool contributor Matthew Farley 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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