The Incannex (ASX:IHL) share price is up 40% in a month. Here’s why

Incannex has been on an extended run lately. Here are the details.
The post The Incannex (ASX:IHL) share price is up 40% in a month. Here’s why appeared first on The Motley Fool Australia. –

The Incannex Healthcare Ltd (ASX: IHL) share price has been a winner on the ASX over the last few weeks and posted outsized gains.

Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped 2.7% into the red over the past month, Incannex shares have soared 42% in that time to now trade at 39 cents each.

Let’s dive in to see what’s behind Incannex shares lately.

A bit more on Incannex and the industry

Incannex is a biopharmaceutical company that has expertise in medicinal cannabis and psychedelics. There is a wealth of research that now exists to support the use of these compounds as prescription-type medicine.

For instance, Incannex’s labels are indicated in conditions such as sleep apnoea, traumatic brain injury (TBI), osteo arthritis and rheumatoid arthritis, and inflammatory bowel disease (IBD).

At the time of writing, Incannex has a market capitalisation of $432 million.

What’s been driving the Incannex share price lately?

Incannex has been on the good end of clinical and regulatory tailwinds that have impacted its share price.

Earlier in March, the company revealed its drug candidate IHL–675A, indicated for use in rheumatoid arthritis, was more effective at reducing symptoms associated with rheumatoid arthritis versus other labels on the market.

This is promising news for the company, given that its CBD based treatment avenues appear to be gaining steam in the domain of autoimmune/auto-inflammatory disorders like rheumatoid arthritis.

In fact, in a nice add-on to the study, the IHL–675A compound was also found to be effective in treating other inflammatory based conditions such as bronchitis, asthma and colitis.

Incannex also recently announced its intention to float on the NASDAQ using American Depositary Receipts under the ticker “IXHL”.

It announced the filing of a Form F-1 last month with the US Securities and Exchange Commission (SEC). The F-1 form is what non-US companies file if wanting to list onto a US exchange, such as the NASDAQ. It’s the same as an initial public offering (IPO) on the ASX.

Aside from this, Incannex also successfully filed several patent applications in the last few months. It completed applications in Europe, Japan and Australia for its IHL–42X development program.

Investors bought Incannex shares on the patent news as well as the company’s FY21 results where it grew revenue 214% year on year.

There has been no other market-sensitive information for the company lately so it appears investors are buying Incannex shares on the back of these catalysts.

Incannex share price snapshot

The Incannex share price has posted outsized returns since January and has climbed 152% this year to date. This extends the gain over the past 12 months to a mammoth 561%.

Both of these results have far outpaced the broad index’s return of around 25% over the past year.

The post The Incannex (ASX:IHL) share price is up 40% in a month. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Incannex Healthcare right now?

Before you consider Incannex Healthcare, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Incannex Healthcare wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Incannex (ASX:IHL) share price is rocketing 170% in 2021
Why the Incannex (ASX:IHL) share price leapt 9% today

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!