Incannex achieves record medicinal cannabis oil sales as pure play pharmaceutical company

Incannex (ASX: IHL) has reported its highest quarterly sales for the September period – beating its previous June quarter record.

For the three months ending September 2020, Incannex received $695,000 from cash sales of its cannabinoid products under Australia’s Special Access Scheme (SAS).

Incannex chief executive officer and managing director Joel Latham noted the September quarter sales figure was comprised exclusively of the company’s cannabinoid products, whereas the June quarter sales included cash inflows from the dental devices business before it was sold.

“Therefore, I am delighted to report that our most significant quarter of cash sales has come immediately after Incannex finalised its transition into a pure play pharmaceutical development company.”

Medicinal cannabis oils

“Incannex’s offering to shareholders is unique in that we have short and long-term pharmaceutical development goals.”

Mr Latham added the company’s short-term goal remained providing its medicinal cannabis oils to patients under the SAS, while the long-term goal involved advancing four therapeutic products to Food and Drug Administration registration and commercialisation.

To meet its short-term goals, Incannex has received an additional batch of 5,500 medicinal cannabis oils: Cannagesia, Releafia, Nutralesic and Inflammex, which offer relief for patients suffering from epilepsy, inflammatory bowel disease, migraine, insomnia, opioid reduction, arthritis and other complaints.

Incannex sells its oils through a supply and distribution agreement with Cannvalate Pty Ltd, which is the country’s largest network of cannabis medicine prescribers.

Dr Sud Agarwal, who is director and chief medical officer of Incannex is also chief executive officer of Cannvalate.

Longer-term strategy

Of the four therapies Incannex plans to commercialise, Mr Latham said three research programs have started, with more results anticipated “imminently”.

One of the company’s studies includes using its IHL-675A drug in advancing COVID-19 induced sepsis associated acute respiratory distress syndrome (SAARDS).

The drug is a combination of hydroxychloroquine and cannabidiol and has achieved positive results in pre-clinical animal studies against SAARDS.

Incannex has in vitro studies underway to uncover the optimal inflammation dampening response of IHL-675A.

To continue advancing this research, Incannex received another batch of hydroxychloroquine compound, which is equivalent to about 5,000 doses.