IGC Pharma Reports First Quarter Fiscal 2026 Financial Results; Company Accelerates Phase 2 Alzheimer's Trial

Rhea-AI Summary

IGC Pharma (NYSE American:IGC) reported Q1 fiscal 2026 financial results, highlighting progress in its Phase 2 CALMA trial for Alzheimer's disease treatment. Revenue increased 21% to $328,000 compared to Q1 FY2025. The company reduced its net loss to $1.6 million ($0.02 per share) from $2.3 million year-over-year.

Notable achievements include expansion of trial sites across North America for IGC-AD1, a cannabinoid-based treatment for Alzheimer's agitation, advancement of MINT-AD AI platform for early Alzheimer's detection, and extension of an undrawn $12 million credit facility with O-Bank. The company successfully reduced SG&A expenses by 28% to $1.2 million and raised $3.5 million through private placements and ATM offering.

Positive

• Revenue increased 21% year-over-year to $328,000
• Net loss reduced by 30% to $1.6 million from $2.3 million year-over-year
• SG&A expenses decreased 28% to $1.2 million through operational efficiency
• $12 million credit facility extended with O-Bank
• Successfully raised $3.5 million via private placements and ATM offering
• Expanded trial sites across North America for Phase 2 CALMA trial

Negative

• Continued operational losses of $1.6 million in Q1
• Dependence on external funding through equity raises, potentially diluting shareholders
• R&D expenses remain high at $851,000 despite cost-cutting initiatives

Insights

Biotechnology Financial Analyst

IGC shows improved financial efficiency with 28% lower SG&A expenses while advancing Alzheimer's clinical trials despite narrowing quarterly losses.

IGC Pharma's Q1 FY2026 results demonstrate encouraging financial discipline amid its clinical development programs. The company reported $328,000 in revenue, representing a 21% year-over-year increase driven by white label formulation sales. More significantly, management has implemented substantial cost-cutting measures, reducing SG&A expenses by $462,000 (28% reduction) to $1.2 million through headcount alignment, compensation restructuring, and improved vendor management.

The company's focus on capital preservation is evident in its narrowed quarterly net loss of $1.6 million ($0.02 per share), compared to $2.3 million ($0.03 per share) in the year-ago period. This 30% improvement in bottom-line performance suggests management is effectively extending its operational runway while maintaining critical R&D infrastructure.

R&D expenses decreased slightly by $38,000 (4%) to $851,000, though adjusting for a one-time expense in the prior year actually shows a modest increase in core research investment. The company has maintained its $12 million undrawn credit facility with O-Bank, providing significant financial flexibility. Additionally, IGC raised approximately $3.5 million through private placements and ATM offerings during and after the quarter, further strengthening its cash position.

The efficiency improvements are particularly notable as IGC accelerates its Phase 2 CALMA trial for IGC-AD1, its proprietary cannabinoid-based formulation targeting agitation in Alzheimer's patients. The expansion of trial sites across North America indicates management's commitment to advancing this key clinical program despite financial constraints. The dual focus on financial discipline and clinical advancement demonstrates pragmatic stewardship of shareholder resources while maintaining momentum in potentially value-creating programs.

Neuroscience Research Expert

IGC's multi-platform approach to Alzheimer's shows promise with accelerated clinical trials, but remains in early stages with significant hurdles ahead.

IGC Pharma is pursuing a scientifically diversified approach to Alzheimer's disease that warrants attention. Their lead candidate, IGC-AD1, targets agitation in Alzheimer's patients—a symptom affecting up to 76% of patients that significantly impacts quality of life and caregiver burden. The acceleration of their Phase 2 CALMA trial, with expanded clinical sites across North America, indicates confidence in the preliminary safety and efficacy data.

Beyond symptom management, IGC is simultaneously developing disease-modifying candidates. TGR-63 targets amyloid plaques—a hallmark pathology in Alzheimer's—though still in preclinical development. This dual approach of addressing both symptoms and underlying pathology is scientifically sound, as effective Alzheimer's management requires both components.

Their MINT-AD platform represents an innovative application of AI in Alzheimer's research. By increasing harmonized databases and training algorithms, IGC aims to create a tool for identifying and stratifying Alzheimer's risk factors and predicting cognitive decline. This approach aligns with the growing consensus that early intervention is crucial, potentially benefiting the estimated 400 million individuals with early Alzheimer's pathology.

The recent presentations at the Alzheimer's Association International Conference (AAIC) and the 2025 Genetic Toxicology Association Meeting indicate engagement with the scientific community and peer review processes—essential steps in clinical development. The toxicology data presented for THC components is particularly relevant given the regulatory scrutiny around cannabinoid-based therapeutics.

While promising, these programs remain in relatively early stages, with significant clinical, regulatory, and commercial hurdles ahead. The company's multi-platform strategy spreads resources across several initiatives, which presents both diversification benefits and execution challenges for a company of IGC's size.

POTOMAC, MARYLAND / ACCESS Newswire / August 19, 2025 / IGC Pharma, Inc. ("IGC" or the "Company") (NYSE American:IGC), a clinical-stage biotechnology company leveraging AI to develop innovative treatments for Alzheimer's disease, reported its financial results for the quarter ended June 30, 2025.

Highlights in the quarter include:

• Accelerated progress on the Company's Phase 2 CALMA trial in Alzheimer's disease

• Progress in the development of MINT-AD

• Extension of its undrawn $12M credit facility

Ram Mukunda, CEO of IGC Pharma, commented, "We began fiscal 2026 with solid strategic momentum, advancing multiple programs that we believe position IGC for meaningful value creation this fiscal year. Our Phase 2 CALMA trial for IGC-AD1, a cannabinoid-based proprietary formulation with the potential to address agitation, a debilitating symptom affecting up to 76% of Alzheimer's patients, continues to progress toward critical milestones in the FDA clinical trial process. In parallel, our non-cannabinoid platforms, TGR-63 and IGC-M3, are moving through preclinical development with the goal of addressing underlying disease modification. We also made progress with MINT-AD, by increasing the number of harmonized databases and training algorithms. MINT-AD is our first-of-its-kind AI-driven physician's tool to help identify and stratify Alzheimer's risk factors and predict cognitive decline, which we believe can help the over 400 million individuals with early Alzheimer's pathology who are at risk for Alzheimer's."

Q1 FY2026 Company's Highlights:

Strategic & Operational Highlights

• During the quarter, IGC expanded trial sites across North America (Ontario, FL, RI, PR, OK) to support enrollment in the CALMA Phase 2 trial of IGC-AD1, a proprietary natural cannabinoid based investigational medication in trials for controlling agitation in Alzheimer's disease, with potential disease-modifying effects.

• On May 8, 2025, the Company presented genetic toxicology safety data for the IGC‑AD1's active pharmaceutical ingredients, including Δ-9 tetrahydrocannabinol ("THC"), at the 2025 Genetic Toxicology Association Meeting.

• On June 24, 2025, the Company and O-Bank agreed to extend the $12 million credit facility under substantially the existing terms, with minor adjustments to the facility fees and the interest rate. The facility remained undrawn at quarter‑end.

• The Company is moving aggressively to cut cost and shift more resources to completing the CALMA Phase 2 trail and completing implementing MINT-AD. During, and subsequent to the end of the quarter IGC Pharma raised approximately $3.5 million via private placements and at-the-market (ATM) offering.

Company Updates:

• On July 21, 2025, IGC's Principal Scientist Dr. Jagadeesh Rao received a Best Researcher Award at the 11th Annual World Neuroscience Awards.

• Between July 29 and 30, 2025, the Company presented multiple posters at the Alzheimer's Association International Conference (AAIC) in Toronto, an event attended by approximately 10,000 participants. Presentations included new data on MINT-AD, IGC's flagship AI model for the early detection of Alzheimer's disease.

Financial Summary

• During the three months ended June 30, 2025, the Company generated approximately $328 thousand in revenue, representing an increase of 21% compared to approximately $272 thousand generated during the three months ended June 30, 2024. The increase in revenue is attributed to white label sales of our over-the-counter formulations. The Company is committed to its current strategy of driving sales in formulations, both as branded and white-labeled products.

• During the three months ended June 30, 2025, SG&A expenses decreased by approximately $462 thousand or 28% to approximately $1.2 million as compared to the three months ended June 30, 2024, from approximately $1.7 million. This significant decline in SG&A expenses is attributable to the Company's focused efforts to optimize corporate-level operational efficiency by lowering employee-related costs due to headcount alignment and compensation restructuring, implementing better inventory management systems, and reducing spending on legal and professional services through more efficient vendor management. These optimizations allowed the Company to preserve capital and extend its operational runway while maintaining the infrastructure necessary to support clinical development and strategic initiatives.

• During the three months ended June 30, 2025, the Company reported Research and Development ("R&D") expenses decreased by approximately $38 thousand or 4% to approximately $851 thousand during the three months ended June 30, 2025, from approximately $889 thousand. The decrease is primarily due to a one-time non-cash expense of approximately $100 thousand in three months ended June 30, 2024. One-time expense adjusted, there is an increase in R&D expenses by $62 thousand. The R&D expenses are primarily attributed to the progression of Phase 2 trials on IGC-AD1 and preclinical studies on TGR-63, indicating the Company's dedication to advancing its product pipeline.

• The net loss for the three months ended June 30, 2025, was approximately $1.6 million or $0.02 per share, compared to approximately $2.3 million or $0.03 per share for the three months ended June 30, 2024.

As of June 30, 2025, the Company has not drawn on the $12 million available under the Credit Agreement with O-Bank. IGC Pharma's financial statements for the quarter ended June 30, 2025, filed on Form 10-Q, are available on www.sec.gov.

About IGC Pharma (dba IGC):

IGC Pharma (NYSE American:IGC) is a clinical-stage biotechnology company leveraging AI to develop innovative treatments for Alzheimer's and metabolic disorders. Our lead asset, IGC-AD1, is a cannabinoid-based therapy currently in a Phase 2 trial (CALMA) for agitation in Alzheimer's dementia. Our pipeline includes TGR-63, targeting amyloid plaques, and early-stage programs focused on neurodegeneration, tau proteins, and metabolic dysfunctions. We integrate AI to accelerate drug discovery, optimize clinical trials, and enhance patient targeting. With 30 patent filings and a commitment to innovation, IGC Pharma is advancing breakthrough therapies.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements are based largely on IGC Pharma's expectations and are subject to several risks and uncertainties, certain of which are beyond IGC Pharma's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, the Company's failure or inability to commercialize one or more of the Company's products or technologies, including the products or formulations described in this release, or failure to obtain regulatory approval for the products or formulations, where required, or government regulations affecting AI or the AI algorithms not working as intended or producing accurate predictions; general economic conditions that are less favorable than expected; the FDA's general position regarding cannabis- and hemp-based products; and other factors, many of which are discussed in IGC Pharma's U.S. Securities and Exchange Commission ("SEC") filings. IGC incorporates by reference its Annual Report on Form 10-K filed with the SEC on June 27, 2025, as if fully incorporated and restated herein. Considering these risks and uncertainties, there can be no assurance that the forward-looking information contained in this release will occur. IGC Pharma, Inc. assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.

Contact Information

Rosalyn Christian / John Nesbett
IMS Investor Relations
igc@imsinvestorrelations.com
(203) 972-9200

SOURCE: IGC Pharma, Inc.

View the original press release on ACCESS Newswire

FAQ

What were IGC Pharma's Q1 2026 financial results?

IGC reported revenue of $328,000 (up 21% YoY), reduced net loss to $1.6 million ($0.02 per share), and decreased SG&A expenses by 28% to $1.2 million.

How is IGC's Phase 2 CALMA trial for Alzheimer's disease progressing?

IGC expanded trial sites across North America (Ontario, FL, RI, PR, OK) for the CALMA Phase 2 trial of IGC-AD1, their cannabinoid-based treatment for Alzheimer's agitation.

What is IGC Pharma's cash position and recent funding?

IGC has an undrawn $12 million credit facility with O-Bank and raised $3.5 million through private placements and ATM offering during and after Q1 FY2026.

What is MINT-AD and how is IGC using AI in Alzheimer's research?

MINT-AD is IGC's AI-driven physician's tool designed to identify and stratify Alzheimer's risk factors and predict cognitive decline, targeting over 400 million individuals with early Alzheimer's pathology.

How much did IGC reduce its operating expenses in Q1 2026?

IGC reduced SG&A expenses by 28% to $1.2 million and slightly decreased R&D expenses by 4% to $851,000 compared to Q1 2025.