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

Investors are seemingly optimistic on the healthcare company.
The post Why the Incannex (ASX:IHL) share price is rocketing 170% in 2021 appeared first on The Motley Fool Australia. –

The Incannex Healthcare Ltd (ASX: IHL) share price is having a year to remember.

At the time of writing, shares in the company are up 170% in 2021 and 3.7% today to 42 cents each. It’s an impressive feat with many factors behind it.

Let’s take a closer look and see why the company’s shares are so high.

Company profile

Incannex is a pharmaceutical company that specialises in medicinal cannabinoid and psychedelic products. It sells worldwide, with a particular focus on the United States. The company, however, does not have regulatory approval to sell its products in the US.

The company claims its medicines can be used to treat a range of ailments, including anxiety, sleep apnoea, traumatic brain injury, respiratory illnesses such as asthma, arthritis, and inflammatory bowel disease.

Why the Incannex share price is blazing in 2021

The Incannex share price has been absolutely rocketing in 2021 — for a variety of reasons.

For example, in March, shares in the company leapt 10% on the news a clinical trial by the company proved its treatment to be more effective in treating rheumatoid arthritis than currently available medications.

The company’s announcement at the time said the drug was up to 3.5 times more effective at reducing arthritis than common treatments currently on the market.

At present, the main treatment for rheumatoid arthritis is hydroxychloroquine (HCQ), marketed as Plaquenil. The company noted long term use of HCQ has been linked to increased cardiovascular mortality. HCQ has been in the news recently over debunked claims the drug could treat COVID-19.

Another reason for the rising Incannex share price is the company’s ongoing process to navigate the regulatory framework of the world. In July, for example, Incannex filed a patent application for use in Europe, Japan, and Australia for its IHL-42X development program. Its share price increased on the news.

As well, in August, the Incannex share price rose 9% when the company announced it was taking the first steps to list American depository shares (ADS) on NASDAQ. 1 share of the ADS would be equivalent to 50 shares of Incannex on the ASX. Shareholders still need to approve of this decision.

Incannex FY21 results

For financial year 21, Incannex reported the following:

Revenue from ordinary activities up 214% to $1.9 million.
Losses for the year jumped 73.8% to $8.2 million.
Basic loss per share of 83 cents – up from a 69 cent per share loss in the prior corresponding period (pcp).
Net cash from operating activities outflow of $6.9 million which is higher than the $3.9 million outflow in the pcp.

The Incannex share price rose 7.79% on the day of the results announcement.

Incannex share price snapshot

Since listing on the ASX, the Incannex share price has fallen 91.3%. However, over 5 years, it is up 406% and over 12 months, it is 710% higher.

The company has a market capitalisation of around $453 million.

The post Why the Incannex (ASX:IHL) share price is rocketing 170% in 2021 appeared first on The Motley Fool Australia.

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

Before you consider Incannex, 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 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 leapt 9% today

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!