Incannex Healthcare shifts from making an impression to setting sales records
Incannex recorded $671,000 in sales receipts in Q2 2020 with momentum “expected to continue” into Q3.
Cannabinoid development company Incannex Healthcare (ASX: IHL) has published provisional performance figures for the past quarter, declaring a “record” three months with sales momentum expected to continue going into the next quarter.
The company is also welcoming July with a name change, substituting its former name, Impression Healthcare, with Incannex Healthcare – a name that better reflects its ongoing development of unique cannabinoid products and research into treating obstructive sleep apnoea, traumatic brain injury, acute respiratory distress syndrome (ARDS) and temporomandibular joint disorder.
Crucially, the brand change also symbolises Incannex’s commitment becoming a “pure-play” biotech development company on a mission to develop a range of medicinal cannabis products it can market to patients that have little or no other alternative treatments.
In a statement to the market this morning, Incannex said it expects to report cash sales receipts of up to $671,000 for the second quarter of this year, up 97% year-on-year, when the company publishes its official quarterly results in the coming weeks.
The feat represents Incannex’s largest quarterly sales figure since listing on the ASX in November 2016. Coincidentally, the company’s surplus market torque coincides with a broad-based increase in medicinal cannabis product sales under Australia’s Special Access Scheme (SAS) which bodes well for medicinal cannabis adoption and sales for the entire industry.
IHL has also highlighted previously that it is pursuing FDA regulatory exclusivity for three of its products; a strategy that put the company on the path to being a pharmaceutical development company.
GW pharmaceuticals is the only recent medicinal cannabis company to achieve registration, and thus market exclusivity, for its CBD-based product “Epidiolex”. Epidiolex, which contains cannabidiol to treat severe forms of epilepsy, brought in a total of $296 million in sales in 2019 across the globe for the British pharmaceutical company.
Cannabinoid sales momentum
According to Incannex, the fastest-selling product this past quarter was the Cannagesia CBD oil tinctures and reported that it expects sales momentum to maintain current its pace going into Q3 after receiving a batch of 2,500 Incannex-branded Cannagesia CBD oil tinctures earlier this week.
The company’s cannabinoid products are mostly sold under its product supply and distribution relationship with Australia’s largest network of cannabis medicine prescribers, Cannvalate.
The network’s chief executive, Dr Sud Agarwal, is also a director and chief medical officer of Incannex with Cannvalate and Dr Agarwal both holding major shareholdings in Incannex.
Dr Agarwal presented and discussed Incannex’s portfolio at the company’s annual general meeting last year. In his presentation, he explained that Incannex’s program now facilitates a pathway to creating unique treatments for which registration will be sought from various regulators globally.
“After sourcing a great range of medicinal cannabis manufacturers, we have been unrelenting in our efforts to grow cash sales of the Incannex range of products,” said Incannex managing director and chief executive officer Joel Latham.
“I am delighted to report that the company has achieved its greatest quarter of cash sales receipts, being a 97% increase over the previous corresponding June 2019 quarter,” he added.