IGC Pharma Announces Q1 Fiscal 2025 Results

IGC Pharma, Inc. (IGC) has released its financial results for the first fiscal quarter of 2025, ending on June 30, 2024. This period was marked by several significant developments for the company, particularly in its Alzheimer's disease research initiatives.

In April 2024, IGC Pharma integrated AI expertise into its operations by bringing on board Pablo Arbelaez, Ph.D., a distinguished AI researcher. This move aims to enhance the progression of the Phase 2 clinical trial of IGC-AD1, which targets agitation in Alzheimer’s patients. Shortly after, interim data from this trial indicated a noteworthy reduction in agitation at the two-week mark when compared with a placebo. This promising data was a key highlight for the company.

By late May 2024, IGC Pharma had initiated patient enrollment at Neurostudies, Inc. in Port Charlotte, Florida, further advancing the Phase 2 trial of IGC-AD1. Another milestone in June was the positive pre-clinical results for another investigational drug, TGR-63. This drug showed potential in fighting Alzheimer's disease in a pre-clinical mouse model.

Financially, IGC Pharma extended its Master Loan and Security Agreement with O-Bank, Co. Ltd. for an additional year, securing $12 million in funding effective from July 8, 2024. The company incurred a facility fee of $84,000 for this extension.

Ram Mukunda, CEO of IGC Pharma, highlighted the company’s strategic progress in his comments, focusing on significant advances in their Alzheimer's research portfolio. Mukunda emphasized the promising interim data from the Phase 2 trial of IGC-AD1 and the encouraging pre-clinical outcomes for TGR-63, positioning the company to expand its clinical trials and patient enrollment throughout fiscal 2025, with an eye on eventual commercialization.

During the quarter ending June 30, 2024, IGC Pharma generated approximately $272,000 in revenue, a 51% decline compared to the $555,000 reported for the same period in 2023. This decrease is attributed to the completion of legacy projects in India and the U.S. These projects accounted for nearly half of the previous year's revenue. Nonetheless, the company is committed to boosting sales in its life sciences formulations.

The company’s SG&A expenses for the same period were about $1.7 million, a slight increase from the previous year’s $1.67 million. R&D expenses rose to approximately $889,000, marking a 19% increase from the previous year's $747,000. This rise is primarily due to the ongoing Phase 2 trials of IGC-AD1 and pre-clinical studies of other small molecule assets. The company anticipates further increases in R&D expenses as its Alzheimer's-related projects progress.

IGC Pharma reported a net loss of approximately $2.4 million, or $0.03 per share, for the quarter, compared to a net loss of $2.1 million, or $0.04 per share, for the same period in 2023. As of June 30, 2024, the company had not utilized any of the $12 million available under its credit agreement with O-Bank.

IGC Pharma is focused on leveraging AI to develop innovative Alzheimer's treatments. Their portfolio includes TGR-63, which targets amyloid plaques, and other platforms like IGC-C and IGC-M, which are in preclinical stages. The lead therapeutic candidate, IGC-AD1, is a cannabinoid-based treatment currently in Phase 2 trials aimed at alleviating agitation in Alzheimer’s patients. Interim data suggests this drug could offer more effective and faster relief than existing medications. Additionally, IGC’s AI models are designed to predict biomarkers for early Alzheimer’s detection, optimize clinical trials, and explore affinities to other neurological disorders.

IGC Pharma remains dedicated to advancing their pharmaceutical treatments and improving the lives of those affected by Alzheimer's and related conditions.