IGC Pharma Revenue Declines 51% YoY Due To Completion Of Its Legacy Project In India, Highlights Important Milestones In Alzheimer's Research

IGC Pharma IGC reported its financial results Thursday for the first fiscal quarter of 2025 ended June 30, 2024. The Maryland-based pharmaceutical company disclosed revenue of $272,000, representing a decrease of 51% compared to approximately $555,000 in the first fiscal quarter of 2024.

The company attributes the decrease in revenue to the completion of its legacy infrastructure project in India and some white-label project in the U.S., both of which comprised approximately 50% of the June 2023 revenue.

"The first quarter of fiscal 2025 was marked by significant milestones in our Alzheimer's research portfolio, underscoring our strategic focus on our innovations," Ram Mukunda, CEO of IGC Pharma, stated. "The progress in our Phase 2 clinical trial for IGC-AD1, highlighted by interim data demonstrating a clinically significant reduction in agitation, validates the immense potential of our lead investigational drug. Additionally, the positive pre-clinical outcomes for TGR-63 underscore its promise as a transformative therapy for Alzheimer's, advancing us closer to delivering a novel solution for this critical unmet need. We are strategically positioned to continue expanding our clinical trial footprint and patient enrollment throughout fiscal 2025 as we continue to drive toward commercialization while maximizing operational efficiency and leveraging our unique vertically integrated model."

In April, IGC Pharma disclosed interim data from its Phase 2 clinical trial of IGC-AD1 for agitation in dementia associated with Alzheimer's. The company said that its cannabinoid-based drug candidate provides fast relief with fewer side effects for Alzheimer's-associated agitation.

Read Also: EXCLUSIVE: Revolutionary Alzheimer’s Drug By IGC Shows Early Success

Q1 FY2025 Financial And Operational Summary

• Net loss amounted to $2.4 million, or $0.03 per share, compared to a net loss of $2.1 million, or $0.04 per share, in the same period last year.
• Selling, general and administrative expenses reached $1.7 million, representing an increase of approximately $23,000, or 1%, compared to the three months ended June 30, 2023.
• Research and development expenses were $899,000, representing an increase of approximately $142,000 or 19% compared to the three months ended June 30, 2023. The increase is primarily attributable to the progression of Phase 2 trials on IGC-AD1 and pre-clinical studies on the other small molecule assets. We anticipate increased R&D expenses as the development of our other small molecule assets targeting Alzheimer's and the Phase 2 trial on Alzheimer's expand.
• As of June 30, 2024, the company has not used any of the $12 million available under the Credit Agreement with O-Bank.

Price Action

IGC Pharma shares closed Thursday's market session 1.30% higher at $0.39 per share.

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