IntelGenx Reports First Quarter 2021 Financial Results
SAINT-LAURENT, Quebec, May 13, 2021 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (TSX V:IGX)(OTCQB:IGXT) (the "Company" or "IntelGenx") today reported financial results for the first quarter ended March 31, 2021. All dollar amounts are expressed in U.S. currency, unless otherwise indicated, and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.
2021 First Quarter Financial Summary:
- Revenue was $286,000, compared to $202,000 in the 2020 first quarter.
- Net comprehensive loss was $2.3 million, compared to 2.9 million in Q1-2020.
- Adjusted EBITDA loss was $1.7 million, compared to $1.9 million in the 2020 first quarter.
First Quarter and Recent Developments:
- Entered into a second feasibility agreement with ATAI Life Sciences AG (“atai”) for the development of novel formulations of Salvinorin A, a naturally occurring psychedelic compound being developed for the treatment of treatment-resistant depression and other indications based on IntelGenx's polymeric film technologies.
- Completed the first shipment, consisting of 75,000 CBD Filmstrips, to Heritage Cannabis Holdings Corp. (CSE:CANN).
- Announced a strategic partnership with atai, including a proposed equity investment in IntelGenx by atai. The Company’s wholly owned subsidiary, IntelGenx Corp., also received a $2.0 million secured loan from atai, of which $636,000 was used to fully repay the Company’s outstanding credit facilities with the Bank of Montreal. Subsequent to quarter-end, IntelGenx Corp. receive a second secured loan of $500,000 from atai.
- Received a Notice of Allowance for US Patent Application 16/110.737, entitled “Film Dosage Form with Extended Release Mucoadhesive Particle,” covering novel disintegrating oral film formulations designed for the transmucosal absorption of drug, especially tetrahydrocannabinol (THC), which protects its DisinteQTM products.
- Filed a new provisional patent application at the United States Patent and Trademark Office entitled “High Loading Oral Film Formulation,” which covers the incorporation of high concentrations of active ingredients in products based on its VetaFilm™ proprietary veterinary oral film technology.
- Announced the appointment of Mr. Tommy Kenny as Vice President, Intellectual Property and Legal Affairs, General Counsel of IntelGenx Corp.
"We would like to take this opportunity to thank our shareholders for their support of our transformative strategic partnership with atai, demonstrated by the approval of all related proposals at our Annual Meeting held earlier this week,” commented Dr. Horst G. Zerbe, CEO of IntelGenx. “This transaction positions IntelGenx as a leader within the novel therapeutics field of psychedelics and also provides us with the financial resources needed to continue to advance our robust portfolio of other innovative pharmaceutical film product candidates towards commercialization. We look forward to updating investors as we progress.”
The atai partnership and investment are subject to the approval of the TSX Venture Exchange, in addition to certain customary closing conditions. The transaction is expected to close on or about March 14, 2021.
Financial Results:
Total revenues for the three-month period ended March 31, 2021 amounted to $286,000, an increase of $84,000, or 42%, compared to $202,000 for the three-month period ended March 31, 2020. The change is mainly attributable to an increase in product revenues of $160,000, partially offset by a decrease in research and development (“R&D”) revenues of $76,000.
Operating costs and expenses were $2.2 million for the first quarter of 2021, versus $2.4 million for the corresponding three-month period of 2020. The decrease for the three-month period ended March 31, 2021 is mainly attributable to a $379,000 decrease in R&D expenses, partially offset by a $143,000 increase in manufacturing expenses, an $83,000 increase in selling, general and administrative expenses, and an increase of $13,000 in depreciation of tangible assets.
For the first quarter of 2021, the Company had an operating loss of $1.9 million, compared to an operating loss of $2.2 million for the comparable period of 2020.
Net comprehensive loss for the three-month period ended March 31 2021 was $2.3 million, or $0.02 per basic and diluted share, compared to net comprehensive loss of $2.9 million, or $0.03 per basic and diluted share, for the comparable period of 2020.
As at March 31, 2021, the Company's cash and short-term investments totalled $2.0 million, which did not include the $500,000 secured loan granted to IntelGenx Corp. by atai in May 2021.
Conference Call Details:
IntelGenx will host a conference call to discuss these first quarter 2021 financial results today at 4:30 p.m. ET. The dial-in number for the conference call is (877) 876-9176 (Canada and the United States) and (785) 424-1670 (International). The call will be also be webcast live and archived on the Company's website at www.intelgenx.com under "Webcasts" in the Investors section.
About IntelGenx
IntelGenx is a leading drug delivery company focused on the development and manufacturing of pharmaceutical films.
IntelGenx’s superior film technologies, including VersaFilm®, VetaFilm™ and transdermal, allow for next generation pharmaceutical products that address unmet medical needs. IntelGenx’s innovative product pipeline offers significant benefits to patients and physicians for many therapeutic conditions.
IntelGenx's highly skilled team provides comprehensive pharmaceuticals services to pharmaceutical partners, including R&D, analytical method development, clinical monitoring, IP and regulatory services. IntelGenx's state-of-the-art manufacturing facility offers full service by providing lab-scale to pilot- and commercial-scale production. For more information, visit www.intelgenx.com.
Forward Looking Statements:
This document may contain forward-looking information about IntelGenx' operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about IntelGenx' plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. All forward looking statements are expressly qualified in their entirety by this cautionary statement. Because these forward-looking statements are subject to a number of risks and uncertainties, IntelGenx' actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in IntelGenx' annual report on Form 10-K, filed with the United States Securities and Exchange Commission and available at www.sec.gov, and also filed with Canadian securities regulatory authorities at www.sedar.com. IntelGenx assumes no obligation to update any such forward-looking statements.
Each of the TSX Venture Exchange and OTCQB has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: IntelGenx Technologies Corp.
For IntelGenx:
Stephen Kilmer
Investor Relations
(514) 331-7440 ext 232
stephen@intelgenx.com
Or
Andre Godin, CPA, CA
President and CFO
IntelGenx Corp.
(514) 331-7440 ext 203
andre@intelgenx.com
