The action has been intense and remarkable in the cannabis space of late, particularly for certain stocks, and IntelGenx Technologies Corp. (OTCMKTS:IGXT) just entered that “certain stocks” group on Thursday, with shares rising well over 100% on 20x average volume in response to an announcement that it has signed an agreement with another member of that “certain stocks” group that everyone has heard more about than they may care to ever know over recent days.
Specifically, the company announced that it has executed a non-binding letter of intent with Tilray, Inc. (NASDAQ:TLRY) to co-develop and commercialize oral film products infused with recreational and medical cannabis in anticipation of amended cannabis regulations which would allow adult-use consumers to purchase edible products. While the action in TLRY has been absurd – verging on the comically ridiculous for such a minor “background” player in the cannabis space – the deal is certainly a big headline driver for IGXT given TLRY’s massive media visibility right now.
IntelGenx Technologies Corp. (OTCMKTS:IGXT) frames itself as a drug delivery company, develops novel oral immediate-release and controlled-release products for the pharmaceutical market.
It offers RIZAPORT, an oral thin film formulation of rizatriptan benzoate for the treatment of acute migraines.
The company’s products under development comprise INT0001/2004, an anti-hypertension drug; INT0004/2006, an antidepressant; INT0007/2006 for the treatment of erectile dysfunction; INT0010/2006 for the treatment of neuropathic pain and nausea in cancer patients; INT0027/2011 to treat opioid dependence; INT0036/2012 for schizophrenia; and INT0043/2015 to treat cognitive impairment and Alzheimer’s disease.
It is also developing various products, including INT0037/2013, INT0039/2013, INT0040/2013, INT0042/2015, INT0036/2013, and INT0044/2016 based on three delivery platform technologies, which consist of VersaFilm, an oral film technology; VersaTab, a multilayer tablet technology; and AdVersa, a mucoadhesive tablet technology. The company has co-development and commercialization agreements with RedHill Biopharma Ltd.; Par Pharmaceutical Companies, Inc.; Endo Ventures Ltd., licensing, development, and supply agreement with Chemo Group; and development agreement with Cynapsus Therapeutics Inc.
IntelGenx Technologies Corp. was founded in 2003 and is headquartered in Montreal, Canada.
According to company materials, “Established in 2003, IntelGenx is a leading oral drug delivery company primarily focused on the development and manufacturing of innovative pharmaceutical oral films based on its proprietary VersaFilm technology platform. IntelGenx’ highly skilled team provides comprehensive pharmaceuticals services to pharmaceutical partners, including R&D, analytical method development, clinical monitoring, IP and regulatory services. IntelGenx’ state-of-the-art manufacturing facility, established for the VersaFilm™ technology platform, supports lab-scale to pilot and commercial-scale production, offering full-service capabilities to its clients.”
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As noted above, while TLRY is in fact somewhat of a “bit player” in the cannabis space that has seen its shares driven to absurd mechanical bubble extremes through what one might reasonably call “nauseating irrationality by clueless momentum traders” (though perhaps more by too many shares locked up following the IPO and brokers now afraid to allow shorting – gee, tell us what you really think!), there’s no question that a tiny unknown stock like IGXT would see a major pop by being linked to the flavor of the day in such a remarkable manner.
Recent action has seen a bit less than 160% during the past month in terms of shareholder gains in the company. What’s more, the stock has benefitted from a jump in recent trading volume to the tune of approaching 1500% above the average volume levels in play in this stock over the longer term.
“Our proprietary VersaFilm™ drug delivery platform offers a number of proven advantages – including increased bioavailability, precision dosing, accelerated onset of action, reduced side effects, child-resistant packaging and easier, more discrete administration – all of which we believe have the potential to improve the way people may use and experience cannabis in the future,” said Dr. Horst G. Zerbe, President and CEO of IntelGenx. “This LOI marks the first step in forming an exciting partnership with Tilray, a global leader in the medical and recreational cannabis industry.”
At this time, carrying a capital value in the market of $116.42M, IGXT has a significant war chest ($3.7M) of cash on the books, which compares with about $2.7M in total current liabilities. IGXT is pulling in trailing 12-month revenues of $3.2M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -79.2%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $IGXT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $IGXT, either long or short, and we have not been compensated for this article.