Incannex Healthcare Inc. (NASDAQ:IXHL) said it currently holds about $75 million in cash and carries no debt following the completion of a recent financing round backed by healthcare-focused institutional investors, according to a company statement.
At current trading levels, the clinical-stage biopharmaceutical company has a market capitalization of roughly $46 million, implying what the company describes as a negative enterprise value when compared with its cash holdings.
The funds raised are expected to support the DReAMzz Phase 2 crossover dose-optimization study for IHL-42X, the company’s investigational treatment for obstructive sleep apnea. The trial is designed to refine the ratio between the drug’s two active pharmaceutical ingredients.
Incannex previously completed a Phase 2 clinical trial for IHL-42X that showed statistically significant improvements in outcomes for obstructive sleep apnea patients. The program has received Fast Track designation from the U.S. Food and Drug Administration, and the company has assembled a clinical advisory board made up of sleep apnea specialists.
“Following the completion of this financing, Incannex is in a strong financial position — approximately $75 million in cash, no debt, and well-funded through our DReAMzz study and into an optimized Phase 3 program,” said Joel Latham, President and Chief Executive Officer.
The company expects patient dosing in the DReAMzz study to begin in the coming months.
Incannex is also advancing PSX-001, an oral synthetic psilocybin therapy being developed to treat generalized anxiety disorder, which currently has an open investigational new drug application with the FDA.
In addition, the company maintains a board-approved share buyback program with remaining authorization. Incannex is developing combination therapies targeting conditions including obstructive sleep apnea, rheumatoid arthritis and generalized anxiety disorder.