On May 14, 2020 IntelGenx Technologies Corp. (TSX V:IGX)(OTCQB:IGXT) (the "Company" or "IntelGenx") reported financial results for the first quarter ended March 31, 2020 (Press release, IntelGenx, MAY 14, 2020, View Source [SID1234558032]). 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.
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
2020 First Quarter Financial Summary:
Revenue was $202,000, compared to $416,000 in the 2019 first quarter
Adjusted EBITDA was ($1.9 million), compared to ($2.1 million) in Q1-2019
Cash and short-term investments totaled $4.4 million as at March 31, 2020
Recent Developments:
Announced a performance improvement program focused on generating near-term revenue, preserving the Company’s resources, extending its cash runway and accelerating the launch of RIZAPORT in Spain. The program also includes plans to meet with the U.S. Food and Drug Administration to discuss its recent Complete Response Letter – which requested additional information, but no new bioequivalence study – related to IntelGenx’s resubmitted 505(b)(2) New Drug Application for RIZAPORT.
Closed an offering of 16,317,000 units (the "Units") at a price of C$0.50 per Unit for gross proceeds of C$8,158,500.
Received a No Objection Letter from Health Canada in response to IntelGenx’s amended Clinical Trial Application for the ongoing Montelukast VersaFilm Phase 2a clinical trial in patients with mild to moderate Alzheimer’s Disease.
Announced that a cannabis-infused VersaFilm product has been finalized with its co-development partner, and all manufacturing scale-up work has been successfully completed.
Signed a binding term sheet with Orivas for the commercialization of RIZAPORT pursuant to which Orivas will obtain exclusive rights to market and sell RIZAPORT in Lithuania, Latvia, Estonia and Poland, with the right of first refusal for a predefined term to include the Republic of Belarus and/or Republic of Ukraine, as well as any of the Scandinavian countries (Finland, Denmark, Sweden and Norway).
"This quarter, we continued to make final preparations pending receipt of Health Canada’s micro-processing license, which is required to enable us to begin commercial production of cannabis-infused oral films for our partner," said Dr. Horst G. Zerbe, President and CEO of IntelGenx. "We also implemented the previously announced performance improvement program, which includes measures to reduce expenses, optimize our organizational structure and extend our cash runway. The expense reduction initiatives include a 20% salary deferral by senior management, a 20% board fee reduction, the cancellation of DSU grants to directors, as well as staffing reductions of 10%. These were difficult, but necessary decisions aimed at maintaining our financial stability during this uncertain time, while better positioning the Company for future success."
Financial Results:
Total revenues for the three-month period ended March 31, 2020 amounted to $202,000, a decrease of $214,000 compared to $416,000 for the three-month period ended March 31, 2019. The decrease is mainly attributable to a $214,000 decrease in Research and Development ("R&D") revenues.
Operating costs and expenses were $2.4 million for the first quarter of 2020, versus $2.7 million for the corresponding three-month period of 2019. The decrease for the three-month period ended March 31, 2020 is mainly attributable to a $10,000 decrease in R&D expenses and a $380,000 decrease in Selling, General and Administrative expenses.
For the first quarter of 2020, the Company had an operating loss of $2.2 million, compared to an operating loss of $2.3 million for the comparable period of 2019.
Net comprehensive loss for the three-month period ended March 31, 2020 was $2.9 million, or $0.03 per basic and diluted share, compared to net comprehensive loss of $2.3 million, or $0.03 per basic and diluted share, for the comparable period of 2019.
As at March 31, 2020, the Company’s cash and short-term investments totalled $4.4 million.
Conference Call Details:
IntelGenx will host a conference call to discuss these 2020 first quarter financial results today, Thursday, May 14, 2020, at 4:30 p.m. ET. The dial-in number for the conference call is (833) 231-8269 (Canada and United States) or (647) 689-4114 (International), conference ID 9608388. The call will be also be webcast live and archived for twelve months at www.intelgenx.com.