Stonegate Updates Coverage on Incannex Healthcare Inc. (IXHL) 2Q 2025

Rhea-AI Summary

Incannex Healthcare Inc. (NASDAQ: IXHL) reported its Q2 FY2025 financial results, showing R&D costs of $1.4M, down from $2.6M year-over-year. The decrease resulted from completing the IHL-42X safety and pharmacokinetics trial and shifting resources from the Phase 2 IHL-675A Australia study to a larger U.S. Phase 2 study.

The company recovered 68.3% of R&D costs through a tax incentive of $0.956M. Net loss increased to $5.9M from $5.2M in the same period last year. Notable developments include securing a $50M ELOC financing agreement with Arena Investors and positive top-line results from IHL-42X's pharmacokinetics study, confirming successful drug component delivery. Stonegate Capital Partners' probability-adjusted DCF model suggests a share valuation range of $5.08 to $5.96, with a $5.50 midpoint.

Positive

• Secured $50M ELOC financing agreement with Arena Investors
• Positive top-line results from IHL-42X pharmacokinetics study
• 68.3% R&D cost recovery through tax incentive ($0.956M)
• Reduced R&D costs by 46% YoY ($1.4M vs $2.6M)

Negative

• Net loss increased to $5.9M from $5.2M YoY

News Market Reaction

-8.47%

1 alert

-8.47% News Effect

On the day this news was published, IXHL declined 8.47%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Dallas, Texas--(Newsfile Corp. - February 18, 2025) - Incannex Healthcare Inc. (NASDAQ: IXHL): Stonegate Capital Partners updates their coverage on Incannex Healthcare Inc. (NASDAQ: IXHL). During the second quarter of fiscal year 2025, Incannex Healthcare Inc. reported R&D costs of $1.4M, a decrease from $2.6M in the same period of the previous year. This reduction was primarily due to the completion of the IHL-42X safety and pharmacokinetics clinical trial and the reallocation of resources from the Phase 2 IHL-675A Australia study to a larger U.S. Phase 2 study. The Company recovered 68.3% of these costs with an R&D tax incentive of $0.956 million. The net loss for the quarter was $5.9M, compared to $5.2M in the same period of the previous year.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Incannex secured a strategic financing agreement with Arena Investors, which includes a $50M ELOC with Arena Business Solutions.
• IHL-42X had positive top-line results from a pharmacokinetics(PK) and safety study. The study demonstrated the bioavailability of IHL-42X, confirming the delivery of both drug components.
• When we use a probability adjusted DCF model, it returns an estimated share valuation range of $5.08 to $5.96 with a midpoint of $5.50.

Click image above to view full announcement.

---

About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241380

FAQ

What was Incannex Healthcare's (IXHL) net loss in Q2 2025?

Incannex Healthcare reported a net loss of $5.9M in Q2 2025, compared to $5.2M in the same period of the previous year.

How much did IXHL reduce its R&D costs in Q2 2025?

IXHL reduced its R&D costs to $1.4M in Q2 2025, down from $2.6M in the same period of the previous year, representing a 46% decrease.

What is the value of IXHL's financing agreement with Arena Investors?

IXHL secured a $50M ELOC (Equity Line of Credit) financing agreement with Arena Investors.

What is Stonegate's target price range for IXHL stock?

Stonegate's probability-adjusted DCF model suggests a share valuation range of $5.08 to $5.96, with a midpoint of $5.50.

How much did IXHL receive in R&D tax incentives for Q2 2025?

IXHL received $0.956 million in R&D tax incentives, representing 68.3% of their R&D costs for Q2 2025.