IGC Pharma Reports Second Quarter Fiscal 2025 Results, Showcasing Progress in Its Alzheimer’s Pipeline

Rhea-AI Summary

IGC Pharma reported Q2 FY2025 results with significant pipeline developments in Alzheimer's treatments. Revenue grew 42% to $412,000, while net loss decreased to $1.7 million ($0.02 per share) from $2.5 million ($0.05 per share) in Q2 FY2024. The quarter highlighted progress in multiple compounds: TGR-63 demonstrated blood-brain barrier crossing ability, IGC-1A was identified as a potential GLP-1 agonist through AI modeling, IGC-1C showed promising preclinical results targeting tau protein, and IGC-AD1 advanced as a dual-action disease-modifying therapy. SG&A expenses decreased 25% to $1 million, and R&D expenses reduced 28% to $917,000.

Positive

• Revenue increased 42% to $412,000 in Q2 FY2025
• Net loss reduced to $1.7 million from $2.5 million year-over-year
• SG&A expenses decreased 25% to $1 million
• R&D expenses decreased 28% to $917,000
• $12 million credit line remains unused, maintaining financial flexibility

Negative

• Company continues to operate at a loss ($1.7 million in Q2)
• Revenue remains relatively small at $412,000 despite growth

Insights

Financial Analyst

IGC Pharma's Q2 FY2025 results show mixed signals. While the company achieved 42% revenue growth to $412,000, the low revenue base and continued net losses raise concerns about financial sustainability. The reduced net loss of $1.7 million ($0.02 per share) compared to $2.5 million in Q2 FY2024 stems from cost-cutting measures, with SG&A and R&D expenses down 25% and 28% respectively. The untapped $12 million credit facility provides liquidity runway, but the company needs substantial revenue growth to achieve profitability. The Alzheimer's pipeline developments, particularly IGC-AD1's dual-action potential, could drive long-term value but require significant R&D investment, which may pressure near-term financials.

Medical Research Analyst

The preclinical developments across multiple compounds demonstrate a diversified approach to Alzheimer's treatment. TGR-63's blood-brain barrier penetration and IGC-1C's tau protein modulation represent promising mechanisms of action. Most notably, IGC-AD1's dual targeting of amyloid-beta and tau pathology aligns with current scientific understanding of Alzheimer's pathophysiology. The AI-driven discovery of IGC-1A as a potential GLP-1 agonist is particularly interesting, given the recent success of GLP-1 drugs in metabolic disorders and growing evidence of their potential in neurological conditions. However, these are early-stage developments and success in preclinical studies doesn't guarantee clinical efficacy.

POTOMAC, MD / ACCESSWIRE / November 14, 2024 / IGC Pharma, Inc. ("IGC" or the "Company") (NYSE American: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.

IGC Pharma, Inc.

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
igc@imsinvestorrelations.com

< Financial Tables to Follow>

IGC Pharma, Inc
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)

		September 30, 2024 ($)				March 31, 2024 ($)
ASSETS
Current assets:
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
Non-current assets:
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
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
Commitments and Contingencies - See Note 12
Stockholders' equity:
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	)
Net loss per share attributable to common stockholders:
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
igc@imsinvestorrelations.com
(203) 972-9200

SOURCE: IGC Pharma, Inc.

View the original press release on accesswire.com

FAQ

What was IGC's revenue growth in Q2 FY2025?

IGC reported a 42% revenue growth, reaching $412,000 in Q2 FY2025 compared to Q2 FY2024.

How much did IGC reduce its net loss in Q2 FY2025?

IGC reduced its net loss to $1.7 million ($0.02 per share) from $2.5 million ($0.05 per share) in Q2 FY2024.

What are the key drug candidates in IGC's Alzheimer's pipeline?

IGC's key drug candidates include TGR-63, IGC-1A, IGC-1C, and IGC-AD1, each targeting different aspects of Alzheimer's disease treatment.

How much did IGC spend on R&D in Q2 FY2025?

IGC spent approximately $917,000 on R&D in Q2 FY2025, a 28% decrease from Q2 FY2024.