IntelGenx Q2 2023: Revenue Decline 67%, Operating Costs Rise, What About Net Loss?

IntelGenx Technologies Corp. IGX IGXT, a drug delivery company focused on the development and manufacturing of pharmaceutical films, reported its financial results on Monday for the second quarter ending on June 30, 2023.

IntelGenx: 67% Revenue Dip, Strategic Successes - Can It Turn The Tide?

During this period, IntelGenx reported total revenues of $133,000, marking a 67% decrease compared to the previous year's figure of $398,000.

The decrease primarily resulted from reductions in R&D revenues by $260,000 and royalties on product sales by $5,000.

"We've achieved a significant milestone this quarter, completing enrollment in our BUENA study," stated Dwight Gorham who was recently appointed CEO. "A Health Canada-approved design change will enhance study efficiency, allowing us to detect Montelukast VersaFilm effects with fewer patients.”

"We've also met our short-term commercial goals, signing a binding term sheet with a CDMO customer for oral film packaging services. This pact is set to yield around $9 million over three years, bolstering our revenue stream and advancing our growth strategy."

Operating Costs Increase Marginally

Operating costs and expenses for Q2 2023 totaled $2.7 million, slightly higher than the corresponding period of 2022 at $2.6 million.

The company reported this change is mainly due to increased R&D expenses by $27,000 and selling, general, and administrative expenses by $101,000. However, these were partially offset by decreases in manufacturing expenses by $45,000 and tangible asset depreciation by $1,000.

Consequently, IntelGenx reported an operating loss of $2.5 million for Q2 2023, compared to an operating loss of $2.2 million for the same period in 2022.

Net Comprehensive Loss, Cash and Investments

• The net comprehensive loss for the quarter ended June 30, 2023, amounted to $3.0 million, or $0.02 per basic and diluted share. This reflects a modest improvement from the net comprehensive loss of $3.2 million, or $0.02 per basic and diluted share, reported in the corresponding period of 2022.
• As of June 30, 2023, IntelGenx held cash and short-term investments totaling $1.3 million, highlighting the company's ongoing commitment to navigating the evolving pharmaceutical landscape while addressing financial considerations.

Price Action

IGXT's stocks were trading lower by 13.51% at $0.16 per share at the time of market close. 

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Photo: Steve Buissinne via Pixabay.