IGC Pharma Announces Q3 2024 Earnings: Strategic Patent Achievements Propel Forward Amid Losses

IGC Pharma Inc IGC, a pharmaceutical company based in Maryland, announced its financial results for the third quarter of fiscal year 2024 ending December 31st, 2023. 

The period was marked by significant intellectual property milestones, yet reflected a mixed financial performance with a notable net loss and a decrease in quarterly revenue.

Q3 2024 Financial Highlights

• Revenue was $204 thousand, a 38% decline from the $332 thousand reported in the same period last year.
• Net loss was $5.59 million or $0.09 per share, compared to approximately $2.25 million or $0.04 per share from Q3 2022.
• Adjusted EBITDA was not included in the earnings report.
• Gross profit was $133 thousand, increasing from the $102 thousand reported on the same period last year.

Despite the quarterly revenue dip, the nine-month revenue showed a 40% increase year-over-year, totaling approximately $1.05 million. This growth primarily stems from the Life Sciences segment, despite a strategic shift in resources towards accelerating Phase 2 trials and achieving pharmaceutical GMP certification.

The company also faced a significant net loss of approximately $5.5 million, widening from a loss of $2.2 million in the prior-year period. This escalation in loss was influenced by an impairment of PPE assets and additional non-cash expenses.

Patent Progress And AI Integration

The quarter was marked by strategic achievements, including the European Patent Office’s approval of a novel cannabinoid-based pain treatment and a Mexican patent for Alzheimer's therapy. Furthermore, IGC Pharma’s collaboration with the University of Los Andes underscores its commitment to leveraging artificial intelligence for advancing drug trials.

CEO's Outlook

IGC Pharma's CEO Ram Mukunda expressed optimism about the potential of IGC-AD1, currently in a Phase 2b trial for treating agitation in dementia due to Alzheimer’s, emphasizing its blockbuster drug prospects.

"We are working hard to obtain interim results in 2024. We estimate that in North America and Europe, about 11 million Alzheimer's patients have neuropsychiatric symptoms including agitation. With modest pricing and conservative market penetration IGC-AD1 can potentially be a blockbuster drug," said Mukunda.

IGC Price Action

IGC's shares were trading 1.18% higher at $0.30 per share at the time of this writing around 1:00 PM ET Monday.