Healthcare share Incannex Healthcare Ltd (ASX: IHL) was added to the S&P/ASX 300 Index (ASX: XKO) last month.
The company is a clinical-stage pharmaceutical company with a focus on developing medicinal cannabinoid products and psychedelic therapies to help those with unmet medical needs.
Speaking on the company's inclusion in the index, Incanncex CEO and managing director Joel Latham said:
We're delighted to be … listed among the largest and most-recognisable companies in Australia.
Being listed in the index is a precursory investment condition for many domestic and international investment institutions so we are excited for the possibilities this recognition may bring.
But does adding the healthcare share to the ASX 300 expand the index's unprofitable constituents? Let's take a look at the company's balance sheet to find out.
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Is ASX 300 healthcare share Incannex profitable?
Healthcare share Incannex is among 16 shares added to the ASX 300 in the September quarterly rebalance. And the company is one of many being included in the rebalance that isn't turning a profit.
Incannex brought in $788,654 of income in financial year 2022. However, that was nowhere near enough to cover the company's costs.
In fact, it wasn't even a third of the company's advertising and investor relations spend – sitting at $2.7 million. Incannex also forked out $5.3 million on research and development and $2 million on employee salaries and benefits.
All in all, the ASX 300 healthcare company posted a total after-tax loss of $14.9 million for financial year 2022.
Though, it ended the period with $37.5 million of cash and no debt, meaning it's not in dire need of capital.
Its cash position was bolstered back in April when it underwent a $24 million options exercise program. Additionally, the company listed on the Nasdaq in March.
Finally, Incannex finalised its acquisition of APIRx Pharmaceuticals in August.
Sadly, the company's productive year hasn't been reflected in its share price's performance.
The stock has fallen 51% in 2022 so far to trade at 32 cents right now, including a 14% gain on Friday. That's 0.6% higher than it was this time last year.
For comparison, the ASX 300 has slumped 11% year to date and 7% over the last 12 months.
