IGC Pharma Reports Second Quarter Fiscal 2025 Results, Showcasing Progress in Its Alzheimer's Pipeline
POTOMAC, MD / ACCESSWIRE / November 14, 2024 / IGC Pharma, Inc. ("IGC" or the "Company") (NYSE:IGC) today announced its financial results and strategic advancements for the second fiscal quarter of 2025 ended September30, 2024. The quarter was marked by significant progress in the Company's pipeline, particularly in the development of potential treatments for Alzheimer's and other neurological and metabolic disorders.
Q2 FY2025 Company's Highlights
Crossing the Blood-Brain Barrier with TGR-63: July 9, 2024 - Preclinical analyses for TGR-63 demonstrated this compound's ability to cross the blood-brain barrier with a favorable safety profile, positioning it for further therapeutic exploration as a treatment for Alzheimer's disease.
GLP-1 Agonist Discovery with IGC-1A through AI modeling: August 20, 2024 - Using AI modeling IGC identified IGC-1A as a potential GLP-1 agonist. This discovery opens new avenues in metabolic and neurological treatment, enhancing our competitive edge and expanding market opportunities.
Innovative Alzheimer's Target with IGC-1C: August 22, 2024 - IGC announced promising preclinical results for IGC-1C, a small-molecule modulator that targets tau protein phase separation. This advance strengthens our Alzheimer's portfolio by addressing a major disease pathway with an innovative approach.
Dual-Action Potential of IGC-AD1 as a Disease-Modifying Alzheimer's Therapy: September 4 & 18, 2024 - Preclinical evidence on IGC-AD1 supports its advancement toward clinical trials as a disease-modifying treatment with a unique dual-action potential. IGC-AD1 significantly impacts both amyloid-beta plaques and tau pathology-two critical drivers in Alzheimer's progression-positioning it as a leading candidate in Alzheimer's disease treatment.
"IGC Pharma's second quarter of fiscal 2025 was a period of substantial innovation and strategic milestones," said Ram Mukunda, CEO of IGC Pharma. "Our preclinical successes with TGR-63 and IGC-1C, along with the identification of IGC-1A as a potential GLP-1 agonist, underscore the breadth of our pipeline and our commitment to advancing impactful therapies. Notably, we're excited about the progress of IGC-AD1 in its journey as a potential disease-modifying treatment, a critical step toward addressing Alzheimer's at its core. Additionally, our 42% revenue growth reflects our ability to drive financial and operational momentum alongside research. We remain focused on leveraging AI-driven research and development to enhance value for both patients and shareholders."
Financial Summary
Revenue Growth: Revenue for the quarter reached approximately $412 thousand a 42% increase over Q2 FY 2024, driven by growth in the Life Science Segment, including sales of over-the-counter products, white, and private label services. IGC is focused on expanding revenue and profitability in this segment.
Cost Control Initiatives: SG&A expenses decreased by 25% to approximately $1 million, compared to Q2 FY 2024, reflecting disciplined cost management and a strategic reduction in operational and corporate expenses.
R&D Investment in Core Programs: R&D expenses, in the quarter, were approximately $917 thousand, a 28% decrease over Q2 FY 2024 attributed to cost-efficiency strategies while advancing our Phase 2 trials on IGC-AD1 and preclinical research for our other platforms such as TGR-63. We anticipate increased R&D expenses as we accelerate the Phase 2 trial.
Reduced Net Loss: The net loss for the quarter decreased to approximately $1.7 million or $0.02 per share, compared to approximately $2.5 million or $0.05 per share for Q2 FY 2024.
As of September 30, 2024, the Company has not used any of the $12 million available under the Credit Agreement with O-Bank.
About IGC Pharma (dba IGC):
IGC Pharma is an AI-powered, clinical-stage biotechnology company focused on developing innovative treatments for Alzheimer's disease and transforming patient care with fast-acting, safe, and effective solutions. Our portfolio includes the TGR family, including TGR-63, which targets amyloid plaques, a hallmark of Alzheimer's. The IGC-C and IGC-M platforms are advancing in preclinical studies, focusing on metabolic disorders, tau proteins, early plaque formation, and multiple disease hallmarks. Our lead therapeutic candidate, IGC-AD1, is a cannabinoid-based treatment currently in a Phase 2 trial for agitation in dementia associated with Alzheimer's (clinicaltrials.gov, NCT05543681). Clinical data for IGC-AD1 demonstrated that it has the potential to transform patient care by offering faster-acting and more effective relief compared to traditional medications. Additionally, our AI models are designed to predict potential biomarkers for the early detection of Alzheimer's, optimize clinical trials, and predict receptor affinity, among others. With 28 patent filings and a commitment to innovation, IGC Pharma is dedicated to advancing pharmaceutical treatments and improving the lives of those affected by Alzheimer's and related conditions.
Forward-looking Statements:
This press release contains forward-looking statements. These forward-looking statements are based largely on IGC Pharma's expectations and are subject to several risks and uncertainties, certain of which are beyond IGC Pharma's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, the Company's failure or inability to commercialize one or more of the Company's products or technologies, including the products or formulations described in this release, or failure to obtain regulatory approval for the products or formulations, where required, or government regulations affecting AI or the AI algorithms not working as intended or producing accurate predictions; general economic conditions that are less favorable than expected; the FDA's general position regarding cannabis- and hemp-based products; and other factors, many of which are discussed in IGC Pharma's U.S. Securities and Exchange Commission ("SEC") filings. IGC incorporates by reference its Annual Report on Form 10-K filed with the SEC on June 24, 2024, and on Form 10-Q filed with the SEC on August 7, 2024, as if fully incorporated and restated herein. Considering these risks and uncertainties, there can be no assurance that the forward-looking information contained in this release will occur.
Contact:
Rosalyn Christian
IMS Investor Relations
(203) 972-9200
[email protected]
< Financial Tables to Follow>
IGC Pharma, Inc
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
| September 30, |
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| March 31, |
| |||
ASSETS |
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|
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| ||
Current assets: |
|
|
|
|
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| ||
Cash and cash equivalents |
|
| 1,546 |
|
|
| 1,198 |
|
Accounts receivable, net |
|
| 44 |
|
|
| 39 |
|
Inventory |
|
| 1,510 |
|
|
| 1,540 |
|
Asset held for sale |
|
| 716 |
|
|
| 720 |
|
Deposits and advances |
|
| 434 |
|
|
| 208 |
|
Total current assets |
|
| 4,250 |
|
|
| 3,705 |
|
|
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| |
Non-current assets: |
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Intangible assets, net |
|
| 1,803 |
|
|
| 1,616 |
|
Property, plant, and equipment, net |
|
| 3,468 |
|
|
| 3,695 |
|
Claims and advances |
|
| 687 |
|
|
| 688 |
|
Operating lease asset |
|
| 161 |
|
|
| 198 |
|
Total non-current assets |
|
| 6,119 |
|
|
| 6,197 |
|
Total assets |
|
| 10,369 |
|
|
| 9,902 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
| 768 |
|
|
| 773 |
|
Accrued liabilities and others |
|
| 2,034 |
|
|
| 1,567 |
|
Total current liabilities |
|
| 2,802 |
|
|
| 2,340 |
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|
|
|
|
|
|
|
| |
Non-current liabilities: |
|
|
|
|
|
|
|
|
Long-term loans |
|
| 135 |
|
|
| 137 |
|
Other liabilities |
|
| 20 |
|
|
| 20 |
|
Operating lease liability |
|
| 35 |
|
|
| 84 |
|
Total non-current liabilities |
|
| 190 |
|
|
| 241 |
|
Total liabilities |
|
| 2,992 |
|
|
| 2,581 |
|
|
|
|
|
|
|
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| |
Commitments and Contingencies - See Note 12 |
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Stockholders' equity: |
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|
|
Preferred stock, $0.0001 par value: authorized 1,000,000 shares, no shares issued or outstanding as of September 30, 2024, and March 31, 2024. |
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; 76,636,419 and 66,691,195 shares issued and outstanding as of September 30, 2024, and March 31, 2024, respectively. |
|
| 128,578 |
|
|
| 124,409 |
|
Accumulated other comprehensive loss |
|
| (3,441 | ) |
|
| (3,423 | ) |
Accumulated deficit |
|
| (117,760 | ) |
|
| (113,665 | ) |
Total stockholders' equity |
|
| 7,377 |
|
|
| 7,321 |
|
Total liabilities and stockholders' equity |
|
| 10,369 |
|
|
| 9,902 |
|
These financial statements should be read in connection with the accompanying notes on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 12, 2024.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per share and share data)
(Unaudited)
|
| Three months ended September 30, |
|
| Six months ended September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
|
| ($) |
|
| ($) |
|
| ($) |
|
| ($) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Revenue |
|
| 412 |
|
|
| 291 |
|
|
| 684 |
|
|
| 846 |
|
Cost of revenue |
|
| (214 | ) |
|
| (117 | ) |
|
| (323 | ) |
|
| (417 | ) |
Grossprofit |
|
| 198 |
|
|
| 174 |
|
|
| 361 |
|
|
| 429 |
|
Selling, general and administrative expenses |
|
| (1,041 | ) |
|
| (1,397 | ) |
|
| (2,711 | ) |
|
| (3,044 | ) |
Research and development expenses |
|
| (917 | ) |
|
| (1,268 | ) |
|
| (1,806 | ) |
|
| (2,015 | ) |
Operating loss |
|
| (1,760 | ) |
|
| (2,491 | ) |
|
| (4,156 | ) |
|
| (4,630 | ) |
Other income, net |
|
| 43 |
|
|
| 40 |
|
|
| 61 |
|
|
| 104 |
|
Loss before income taxes |
|
| (1,717 | ) |
|
| (2,451 | ) |
|
| (4,095 | ) |
|
| (4,526 | ) |
Income tax expense/benefit |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Net loss attributable to common stockholders |
|
| (1,717 | ) |
|
| (2,451 | ) |
|
| (4,095 | ) |
|
| (4,526 | ) |
Foreign currency translation adjustments |
|
| (15 | ) |
|
| (63 | ) |
|
| (18 | ) |
|
| (54 | ) |
Comprehensive loss |
|
| (1,732 | ) |
|
| (2,514 | ) |
|
| (4,113 | ) |
|
| (4,580 | ) |
|
|
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| |
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic and diluted |
| $ | (0.02 | ) |
|
| (0.05 | ) |
|
| (0.06 | ) |
|
| (0.08 | ) |
Weighted-average number of shares used in computing net loss per share amounts: |
|
| 76,007,129 |
|
|
| 54,301,087 |
|
|
| 74,419,059 |
|
|
| 53,695,912 |
|
These financial statements should be read in connection with the accompanying notes on Form 10-Q for the quarter ended September 30, 2024, and was filed with the SEC on November 12, 2024.
Contact Information
Rosalyn Christian / Walter Frank
IMS Investor Relations
[email protected]
(203) 972-9200
SOURCE: IGC Pharma, Inc.
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