IntelGenx Reports Second Quarter 2021 Financial Results

SAINT LAURENT, Quebec, Aug. 04, 2021 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp.
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SAINT LAURENT, Quebec, Aug. 04, 2021 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (TSX V:IGX)(OTCQB:IGXT) (the "Company" or "IntelGenx") today reported financial results for the second quarter ended June 30, 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 Second Quarter Financial Summary:

  • Revenue was $162,000, compared to $42,000 in the 2020 second quarter.
  • Net comprehensive loss was $2.5 million, compared to $1.3 million in Q2-2020.
  • Adjusted EBITDA loss was $1.7 million, compared to $1.5 million in the 2020 second quarter.

Second Quarter and Recent Developments:

  • Strengthened Board of Directors with the appointments of Srinivas G. Rao, M.D., Ph.D. and Frank Stegert pursuant to the purchaser rights agreement by and between the Company and ATAI Life Sciences AG ("atai").
  • Received subscriptions from investors in the United States for $2.1 million principal amount of 8% convertible notes due July 31, 2025. IntelGenx intends to use the proceeds to finance its Montelukast study.
  • Entered into a Materials Transfer Agreement with an undisclosed global veterinary health company, which will evaluate IntelGenx's proprietary VetaFilm™ platform in cats.
  • Completed the $12,346,300 investment in IntelGenx by atai. As a result of the investment, ATAI now holds approximately 25% of the issued and outstanding common stock of IntelGenx.
  • Received a second secured loan of $500,000 from atai.
  • Entered into a second feasibility agreement with 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.

"During the second quarter, we executed two agreements that further solidified IntelGenx's position as a leader in oral films," commented Dr. Horst G. Zerbe, CEO of IntelGenx. "The expansion of our strategic partnership with atai to include an additional psychedelic compound is a testament to the benefits of our technology, while our agreement with one of the world's fastest growing animal healthcare companies represents another step toward establishing VetaFilm TM as a new standard for pets. In addition, since the beginning of the quarter, we significantly strengthened our balance sheet, which well positions us to continue advancing our portfolio of innovative film products and product candidates."

Financial Results:

Total revenues for the three-month period ended June 30, 2021 amounted to $162,000, an increase of $120,000, or 286%, compared to $42,000 for the three-month period ended June 30, 2020. The change is mainly attributable to an increase in research and development ("R&D") revenues of $120,000.

Operating costs and expenses were $2.1 million for the second quarter of 2021, versus $1.8 million for the corresponding three-month period of 2020. The increase for the three-month period ended June 30, 2021 is mainly attributable to a $158,000 increase in manufacturing expenses, a $132,000 increase in selling, general and administrative expenses, and an increase of $23,000 in depreciation of tangible assets, partially offset by a $37,000 decrease in R&D expenses.

For the second quarter of 2021, the Company had an operating loss of $1.9 million, compared to an operating loss of $1.8 million for the comparable period of 2020.

Net comprehensive loss for the three-month period ended June 30, 2021 was $2.5 million, or $0.02 per basic and diluted share, compared to net comprehensive loss of $1.3 million, or $0.01 per basic and diluted share, for the comparable period of 2020.

As at June 30, 2021, the Company's cash and short-term investments totalled $12.1 million.

Conference Call Details:

IntelGenx will host a conference call to discuss these second quarter 2021 financial results today at 4:30 p.m. ET. The dial-in number for the conference call is (844) 602-0380 (Canada and the United States) and (862) 298-0970 (International). The call will 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 ®, DisinteQ™, VetaFilm™ and transdermal VevaDerm™, 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 KilmerInvestor Relations (514) 331-7440 ext 232 stephen@intelgenx.com

Or

Andre Godin, CPA, CAPresident and CFOIntelGenx Corp.(514) 331-7440 ext 203 andre@intelgenx.com