Incannex Healthcare authorizes $20 million share buyback program

MELBOURNE/NEW YORK - Incannex Healthcare Inc. (NASDAQ:IXHL) announced Friday that its Board of Directors has authorized a share repurchase program of up to $20 million of the company’s outstanding common stock. The program represents a significant portion of the company’s $35.61 million market capitalization, according to InvestingPro data.

The clinical-stage biopharmaceutical company said it may repurchase shares through open market purchases, privately negotiated transactions, accelerated share repurchase arrangements, or other methods permitted under securities laws, including Rule 10b5-1 trading plans.

The timing and amount of repurchases will depend on market conditions, available capital resources, and other factors, according to the company’s statement.

"The approval of this $20 million repurchase program reflects our confidence in the strength of our pipeline, the resilience of our strategy, and the opportunities ahead," said Joel Latham, President and CEO of Incannex Healthcare. InvestingPro analysis reveals 14 additional key insights about IXHL’s financial health and market position.

Incannex is developing combination medicines targeting conditions including obstructive sleep apnea, rheumatoid arthritis, and generalized anxiety disorder. The company’s lead clinical program, IHL-42X, is an oral fixed-dose combination of dronabinol and acetazolamide designed for obstructive sleep apnea treatment.

The company stated the repurchase program demonstrates its commitment to driving shareholder value while maintaining discipline in capital allocation to support advancement of its late-stage clinical pipeline.

The announcement was made in a press release issued by the company.

In other recent news, Incannex Healthcare Inc. has reported promising outcomes from its Phase 2 clinical trial for its obstructive sleep apnea (OSA) treatment, IHL-42X. The RePOSA trial demonstrated statistically significant improvements, with the drug reducing the Apnea-Hypopnea Index (AHI) by up to 83% in the high-dose group and up to 79% in the low-dose group compared to a placebo. Additionally, exit interviews revealed that 57.6% of participants perceived improvements in their OSA condition, with 89.5% describing these changes as meaningful to their daily lives. Participants noted enhanced sleep quality and reduced daytime sleepiness, among other benefits.

Furthermore, Incannex Healthcare has filed for a substantial offering of common shares worth up to $100 million. This move is part of an Amended and Restated Sales Agreement with A.G.P./Alliance Global Partners and Curvature Securities LLC. The offering adds to previously sold shares with an aggregate gross sales price of approximately $63.47 million. These developments highlight significant progress and strategic financial maneuvers by Incannex Healthcare in recent times.

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