IGC Reports Financial Results for Fiscal Year Ended March 31, 2024
IGC Pharma, a clinical-stage pharmaceutical company, released its financial results for the fiscal year ending March 31, 2024. The company reported a revenue increase to $1.3 million, primarily from its Life Sciences segment. There was a notable decrease in SG&A expenses by 21% to $6.7 million. However, R&D expenses rose by 9% to $3.8 million due to ongoing clinical trials. The company had a net loss of $13 million, reflecting a $3.3 million one-time impairment. Significant achievements include positive interim results from the Phase 2 trial of IGC-AD1, promising preclinical data for TGR-63, and securing three new patents. Additionally, IGC signed a cooperation agreement with the University of Los Andes for AI research in pharmaceuticals. The company also raised $6 million through share purchases and secured a $12 million credit line to support expanded operations.
- Revenue increased to $1.3 million, up from $911 thousand in the previous fiscal year.
- SG&A expenses decreased by $2 million, or 21%, to $6.7 million.
- Positive interim results from the Phase 2 trial of IGC-AD1.
- Promising preclinical results for Alzheimer's drug candidate TGR-63.
- Secured three new patents related to CNS disorders and pain treatment.
- Signed a cooperation agreement with the University of Los Andes for AI research.
- Raised $6 million through share purchases.
- Secured a $12 million credit line from O Bank.
- Net loss increased to $13 million, compared to $11.5 million in the previous fiscal year.
- R&D expenses rose by 9% to $3.8 million.
- One-time impairment of PP&E amounted to $3.3 million.
Insights
IGC Pharma's fiscal year 2024 financial results provide a mixed picture for investors. On the positive side, the revenue increased to
The decrease in SG&A expenses by
The clinical developments reported by IGC Pharma are quite promising. The positive interim results from the Phase 2 trial for IGC-AD1 and preclinical studies for TGR-63 indicate potential breakthroughs in Alzheimer’s treatment. Alzheimer's disease has long been a challenging area, with limited effective treatments available. The ability of IGC-AD1 to reduce Alzheimer's agitation, if confirmed in final trials, could be a significant advancement.
Moreover, TGR-63's success in reducing amyloid-beta plaques in preclinical studies shows promise for future clinical trials. These advancements are vital as they address critical aspects of Alzheimer's pathology, which could make these drugs strong candidates in the market. However, it's essential to bear in mind that these are interim and preclinical results. The path from these stages to market approval is long and fraught with potential obstacles, including regulatory approval and larger-scale efficacy trials.
From a market perspective, IGC Pharma's strategic moves, such as focusing on core pharmaceutical activities and divesting non-core assets, align well with industry trends towards specialization. The partnership with the University of Los Andes on AI research is a forward-thinking approach that could yield significant efficiencies and innovations in drug development. AI's potential to optimize clinical trials and create early detection models is particularly relevant in the high-stakes field of Alzheimer's research.
However, the commercial success of their drug candidates will be a determining factor. With Alzheimer's being a rapidly growing market due to demographic trends, there's substantial potential if IGC Pharma's products prove effective and gain regulatory approval. Investors should watch for updates on the Phase 2 trials and any progress in AI applications, as these could significantly impact the company's valuation and market position.
Full Fiscal Year Highlights
- In March 2024, the Company announced positive interim results from its ongoing Phase 2 trial for IGC-AD1. The interim data have shown promising results in reducing Alzheimer’s agitation, which is a major challenge for patients and their caregivers alike. This development marks a significant step forward in the fight against Alzheimer’s and brings hope to millions of people affected by this devastating disease.
- In January 2024, the Company announced details about its drug candidate TGR-63, which specifically targets amyloid-beta plaque, which has the potential to significantly improve the treatment of Alzheimer’s disease. Subsequently, on February 1, 2024, the Company announced further positive results from preclinical studies of TGR-63, demonstrating its potential as an effective treatment for Alzheimer’s disease. These studies demonstrated that TGR-63 was successful in reducing plaque burden in Alzheimer’s cell lines and animal models, making it a promising therapeutic candidate for the disease.
- The Company had significant achievements in our foreign intellectual property rights as the Company received three (3) patents. One (1) patent relates to Method and Composition for CNS Disorder and two (2) patents relate to Method and Composition for Treating Pain.
- In July 2023, IGC Pharma and the University of Los Andes (Faculty of Engineering) signed a Master Cooperation Agreement to conduct innovative research in Artificial Intelligence (“AI”) applied to the pharmaceutical industry. We are harnessing the power of AI to develop early detection models, optimize clinical trials, and explore new applications for our drugs.
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During fiscal year ended March 31, 2024, the Company entered into Share Purchase Agreements (the “SPAs”) with multiple investors, resulting in approximately
$6 million $2.5 million $12 million - In May 2024, subsequent to Fiscal 2024, the Company announced patient enrollment at Neurostudies, Inc., in a Phase 2 trial investigating IGC-AD1, a partial CB1r agonist with anti-neuroinflammatory properties and an inflammasome inhibitor, to treat Agitation in dementia due to Alzheimer’s disease.
Ram Mukunda, CEO of IGC Pharma, commented, “During the fiscal year we accomplished multiple key milestones and significantly advanced our strategy to bring to market treatments to fight Alzheimer’s – a devastating disease affecting a growing patient population around the globe. The most important achievement in our development pipeline was the positive interim results on IGC-AD1, a significant development in the fight against Alzheimer’s and a reflection of our commitment to advancing our product portfolio and delivering value to all stakeholders. Furthermore, the positive results from preclinical studies of TGR-63 demonstrated its success in reducing plaque burden in Alzheimer’s cell lines and animal models, making it a promising therapeutic candidate for the disease. Looking ahead, we are increasingly optimistic about our prospects to build upon these positive results and deliver long-term value to stakeholders. We appreciate the dedication and hard work of our team, whose efforts have been instrumental in achieving these results. We remain focused on executing our strategic initiatives and are excited about the opportunities that lie ahead.”
Financial Summary
In Fiscal 2024, the Company generated approximately
The Company reported selling, general, and administrative (“SG&A”) expenses for Fiscal 2024 at approximately
In Fiscal 2024, the Company reported research and development (“R&D”) expenses of approximately
To streamline operations and dedicate resources to our core pharmaceutical business, we strategically divested non-core assets. This resulted in a positive impact on our focus and a one-time impairment of PP&E of approximately
Net loss for Fiscal 2024 was approximately
About IGC Pharma, Inc.
IGC Pharma Inc. ("IGC") is focused on Alzheimer’s disease, developing innovative solutions to address this devastating illness. The Company’s mission is to transform the landscape of Alzheimer’s treatment with a robust pipeline of five promising drug candidates. IGC-AD1 and LMP target the hallmarks of Alzheimer’s disease, including neuroinflammation, Aβ plaques, and neurofibrillary tangles. IGC-AD1 is currently undergoing a Phase 2 clinical trial for agitation in dementia associated with Alzheimer’s (clinicaltrials.gov, NCT05543681). TGR-63 disrupts the progression of Alzheimer’s by targeting Aβ plaques. IGC-M3, currently in preclinical development, aims to inhibit the aggregation of Aβ plaques, potentially impacting early-stage Alzheimer’s. IGC-1C, also in preclinical stages, targets tau protein and neurofibrillary tangles, representing a forward-thinking approach to Alzheimer’s therapy. In addition to its drug development pipeline, IGC Pharma seeks to leverage artificial intelligence ("AI") for Alzheimer’s research. Their AI projects encompass various areas, including clinical trial optimization and early detection of Alzheimer’s.
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
< Financial Tables to Follow>
IGC Pharma, Inc. |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share data) |
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March 31, 2024 ($) |
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March 31, 2023 ($) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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1,198 |
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3,196 |
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Accounts receivable, net |
|
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39 |
|
|
107 |
|
Short term investments |
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|
- |
|
|
154 |
|
Inventory |
|
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1,540 |
|
|
2,651 |
|
Asset held for sale |
|
|
720 |
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|
- |
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Deposits and advances |
|
|
208 |
|
|
358 |
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Total current assets |
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3,705 |
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6,466 |
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Non-current assets: |
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Intangible assets, net |
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1,616 |
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1,170 |
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Property, plant and equipment, net |
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3,695 |
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8,213 |
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Claims and advances |
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688 |
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1,003 |
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Operating lease asset |
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198 |
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326 |
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Total non-current assets |
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6,197 |
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10,712 |
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Total assets |
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9,902 |
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17,178 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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773 |
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530 |
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Accrued liabilities and others |
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1,567 |
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1,368 |
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Total current liabilities |
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2,340 |
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1,898 |
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Non-current liabilities: |
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Long-term loans |
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137 |
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141 |
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Other liabilities |
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20 |
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21 |
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Operating lease liability |
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84 |
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|
207 |
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Total non-current liabilities |
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241 |
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369 |
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Total liabilities |
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2,581 |
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2,267 |
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Commitments and Contingencies – See Note 12 |
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Stockholders’ equity: |
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Preferred stock, |
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Common stock and additional paid-in capital, |
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124,409 |
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118,965 |
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Accumulated other comprehensive loss |
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(3,423) |
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(3,389) |
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Accumulated deficit |
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(113,665) |
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(100,665) |
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Total stockholders’ equity |
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7,321 |
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14,911 |
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Total liabilities and stockholders’ equity |
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9,902 |
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17,178 |
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These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal year ending March 31, 2024, filed with the SEC on June 24, 2024.
IGC Pharma, Inc. |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
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(in thousands, except loss per share and share data) |
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Years Ended March 31, |
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2024
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2023
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Revenue |
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1,345 |
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911 |
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Cost of revenue |
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(612 |
) |
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(469 |
) |
Gross profit |
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733 |
|
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|
442 |
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Selling, general and administrative expenses |
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(6,758 |
) |
|
|
(8,552 |
) |
Research and development expenses |
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|
(3,773 |
) |
|
|
(3,461 |
) |
Operating loss |
|
|
(9,798 |
) |
|
|
(11,571 |
) |
Impairment loss on PPE |
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(3,345 |
) |
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- |
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Other income, net |
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|
143 |
|
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|
65 |
|
Loss before income taxes |
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(13,000 |
) |
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(11,506 |
) |
Income tax expense/benefit |
|
|
- |
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|
- |
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Net loss attributable to common stockholders |
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(13,000 |
) |
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(11,506 |
) |
Foreign currency translation adjustments |
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(34 |
) |
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(421 |
) |
Comprehensive loss |
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(13,034 |
) |
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(11,927 |
) |
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Net loss per share attributable to common stockholders: |
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Basic and diluted |
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$ |
(0.22 |
) |
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$ |
(0.22 |
) |
Weighted-average number of shares used in computing loss per share amounts: |
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58,839,868 |
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52,576,258 |
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These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal year ending March 31, 2024, filed with the SEC on June 24, 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240624423552/en/
Investors
IMS Investor Relations
Walter Frank/Rosalyn Christian
igc@imsinvestorrelations.com
(203) 972-9200
Media
JVPRNY
Janet Vasquez
jvasquez@jvprny.com
(212) 645-5498
Source: IGC Pharma, Inc.
FAQ
What were IGC Pharma's revenue figures for the fiscal year ending March 31, 2024?
How did IGC Pharma's SG&A expenses change in Fiscal 2024?
What was the net loss reported by IGC Pharma in Fiscal 2024?
What are the Phase 2 trial results for IGC-AD1?
What are the recent developments for IGC Pharma's drug candidate TGR-63?
How much did IGC Pharma raise through share purchases in Fiscal 2024?
What credit line did IGC Pharma secure in Fiscal 2024?
What new patents did IGC Pharma secure recently?
What agreement did IGC Pharma sign for AI research?
What was the impact of the one-time impairment on IGC Pharma's financial results?
