IGXT - Earnings call transcript Q2 2021 | IntelGenx Technologies Corp.

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Operator

Good day, ladies and gentlemen, and welcome to the IntelGenx Technologies Corp.

Second Quarter 2021 Call. [Operator Instructions]. At this time, it is my pleasure to turn the floor over to your host, Abby Hardy [ph]. Ma'am, the floor is yours.

Unidentified Company Representative

operator. you, Thank and call. everyone, for us joining Good thank today's on afternoon, you With are line me the on Dr. IntelGenx's our President Zerbe, and Horst CEO; CFO. and Andre Godin,

laws. forward-looking that to our in turn are to Horst? not made begin, on except and amounts be Details call otherwise securities statements, are filings the statements, Zerbe. may and we I U.S. subject information like our to change. update results of preparing today's remind Commissions. Before Canadian which undertake A us required forward-looking that Dr. found today materially. differ these forward-looking and represents accordingly, would with would call number the mentioned, risks of and do mentioned as were these may any now Securities U.S. in U.S. you today risks, to like any may Canadian by and assumptions are contain dollars, expectations assumptions obligation unless over I We to subject be as in to by all and, can

Horst Zerbe

afternoon, and and we've on Abby. call, Good Call. our will pipeline today's us corporate Quarter XXXX everyone, IntelGenx progress you, thank Conference On joining you I a projects. provide for discuss Thank the the update for Second key made

up partnership. Following line atai for QX review and I'll XXXX open with our we that, our will the will as your Andre financial results. always, Then, begin questions.

forward the biotechnology Management industries, behalf pleased currently we growth in contributions very Frank formulation Srini atai's other depression of in I'm of be with to agreement, and we Because and Board will A. this prototype IntelGenx psychedelics. exclusively is Under to the further metabolism, to agreement eliminates company, establishing psychedelic and entered a currently atai license, at provide agreement. for and clinical years atai. Life compound our therapeutic of atai film ATAI occurring pleased Salvinorin contemplated that likely this naturally a Officer health and/or will the the the Earlier XX Stegert the forward compounds today, everyone of application and an a work with not X welcome partnership our to our this in exclusive, during for work Salvinorin treatment the Srinivas of investigation. President commercialization mental being we novel extent agreement, second a further into to developed believe for atai's the delegates and formulation where This administration or indications. parties strategic development to with a represents Vice can significant strategy. Rao add treatment treatment-resistant expanded psychedelics time to to is of pharmaceutical reduces and is atai's continue to conduct at completely Co-Founder we Dr. sometimes for serves necessary, first-pass A oxidase monoamine novel concomitant programs into film which work the entactogenic of team, Our on film look on execute integrate and successful, to the they has experience enter inhibitors the quarter second feasibility Sciences we oneirophrenic Scientific and psychedelic, our disorders. another prevention pipeline IntelGenx leader royalty-bearing as technology If to involve while appointments for of field is as opportunity with the as over our development announce the Board would were Investment look technology. the We of as continuing existing development Directors. On of that Chief Operations. to Frank atai their and he professional value

RIZAPORT. to on Now moving

in work to has partner, Exeltis, commercial countries; to commercialization of continue prepare for and contract RIZAPORT in Germany-based the RIZAPORT with launch manufacturing European third to XX LTS, other partner, Difficulty] markets. early and quarter. LTS Spain most our our the the potential Union the We Exeltis' Consistent in European the [Technical with product for right other to capacity countries, European commercialize in

First, has the Exeltis been first RIZAPORT. the shipped for successfully was commercial Spanish manufactured Spain, batch and to launch.

is The matter are speak. Exeltis decided in has businesses practically during product manufactured to launch of as a of a the second fact, batch in most and September third as Spain we August, resume. business closed Spain being Since month the as are whole when activities closed,

and been meet first with batch upon X months successfully Batches resubmission on of we FDA and stability. of on completion being As was X testing, to are and agree X resubmission. to has the accelerated far the details placed plan U.S., stability completed as manufactured,

X to to the irritation study tadalafil. agency on The protocol for response in was that submitted the Moving study months. recently requested be letter revised the complete approved. Duration the FDA will of and

goal front, licensing and advancing, to finalize are our working our quarter agreement. prospective the and On parties partner sheet Term supply the the are with recently is discussions was deal the on signed, partnering and XXXX. commercialization third BD in a of definitive

Australia. in few A Rather, We while the partner, Heritage. the for reported clarify, X product of Australian to through Canada. quantities Australia the is Heritage via going to on intended the we launch of those Heritage previously cannabis. not words manufacturing for in Manufacturing shipment manufacturing short partnerships the itself planned launch a our CBD And order they of companies. our commercialize product of in batches do with launch received ongoing. Now and from is that film of commercialization for ago, an

the bit due as weeks the study, to a regarding and introduction. of past COVID. little months, received of number on stakeholders over been on inquiries put from hold A our shareholders had Montelukast. We, you BUENA mostly and to resumption know, of moving Now which,

resume States of July money notes for XXXX. decided announced USD United that amount convertible to the the that for for amended protocol of X.X high-dose study. And We in study. continuation raising completion the the daily That plan and we the week, That Health the million be investors So the to the sole shelf of into and to dose resuming have from order film XX, principal money. the subscriptions obtain to for life due extension, under purpose approval to exclusively last will in study. earmarked the BUENA data continue we with higher is received look Canada study stability submitted was which we required X%

continue We with to are the the In of United are expansion in evaluate the trial's requested in in later the prepare of from recruitment and we via study discussions fall. IND the States filing, IND the to the involved FDA. [indiscernible] resumption the for the the monitoring an an also we to meantime, number

entered that, of successful, to over towards represents and as enter to We transfer oral with now a global health the a Andre establishing agreement veterinary with review And partner our we helps material an the turn film pets company Now to another into a position in VetaFilm If this for veterinary this on standard And the agreement will intend a evaluate veterinary the new who evaluation would cats. field. step at call results. like undisclosed forefront Andre? I field. for in financial IntelGenx animal with into platform is the our health. for VetaFilm agreement negotiations development of

André Godin

you, everyone. Good Horst. Thank afternoon,

in attributable the quarter is the minutes XXXX The discuss for XXXX. revenue revenues. expenses of total to second to I'll increase and to in take in million tangible the company's to attributable a second of expenses, Those the $XX,XXX depreciation increase in increase million performance XXXX. expense. R&D a increase to $XX,XXX $X.X X-month mentioned, XXX% corresponding and financial $XXX,XXX expenses few of were $XXX,XXX Horst for versus revenue of is $XX,XXX quarter SG&A period The were by offset $XXX,XXX amounts assets. XXXX QX in year. manufacturing costs $X.X the As amounted partially R&D in The mainly same compared for for last increase increase Operating $XXX,XXX in period decrease

for in of program XXXX. in the XXXX factors increase the in assistance was to but operating One expenses received not COVID-XX government the related

company EBITDA the to million negative million compared XXXX compared the an comparable QX year. for share for last operating QX $X.X for XXXX. $X.X the loss negative compared on net For $X.X period The for per of million per net XXXX loss comprehensive $X.X QX $X.XX an of a loss or operating comprehensive loss basic million was same to basis was and XXXX, for the million period $X.X had period Adjusted share XXXX. $X.XX of $X.X or to million comparable diluted of

million in XX, million initial our $XX.X investment short-term and gross includes purchase approximately of $XX.X the This June at XX.X of As and the company's million. stock common $XX.XX cash shares total million from atai XXXX, proceeds of warrants. totaled

result issued closed atai continue stock. XX% innovative portfolio and owns IntelGenx outstanding product and advancing a film to now of May, approximately us investment, this As funds products which These of common our of candidates. will enable in

submitted As subscription investors, Horst due XXXX. for is received a obtaining closing approval all note million in the quarter, $X.X TSX, the of IntelGenx Last Stock our X% and to end, to we to which and investors we Exchange. convertible U.S. of is from July the earlier, principal subject subsequent -- study, the finance Montelukast listing imminent. listing now application for of We requirements to debenture Toronto proceeds the meeting U.S. the sorry, the quarter use mentioned XX, intend an to

TSX While an has is for our shortly. longer Stock back Zerbe. will the initially will we the turn company the anticipated, believe there we long will answer necessary the that application. process now I listing term. structure the approved, That receive and Toronto graduation taken when progression than we company the believe assurance our approve increase much visibility If said, Dr. should that a to to and Horst? as call our no Exchange the is

Horst Zerbe

that, for strategy Andre. also and turn for our to remind closing, again I'd With execute call now you. apply and Board will to that shareholders the Thanks, Q&A. remarks our once following both our support. forward-looking our recognize in to questions. statements on to for like long-term over continuing Thank I'd their our the you Yes. like I continued our and And prepared team

Operator

our from And comes Ashaint question first Instructions]. [ph]. [Operator Rao

Unidentified Analyst

one the to do in So us drug to agreements or other to because money making when goofed again have and milestones what agreement, the last up than are we use was and more not per wanted probably the RIZAPORT. technology. earned tell any EU different been when If XXX(b) only when to like for tadalafil, our actually higher funding bring about than keep if RIZAPORT We've all on a revenue have. all to yet, you generating the We proclaiming are met understand, except not X start failed time. deadlines We we years, And years which in going They've would money, milestone. route [indiscernible], shifting not dollar we the start start X money? What pushed been we have currently lifestyles? now. for met. just We actually your being shareholders will X can making the

Operator

[ph]. question comes next from Our Sam Lynson

Unidentified Analyst

Andre announcement notes price noticed that convertible the missed stock just was convertible recent a late. and question was a that if about at bit of common call sorry the this I earlier joined notes $X.XX, had on, are the which little I to I the stock made. about believe the mentioned, I when I the I'm just but

depreciate of rate. seem or same or if time, an for stock. at the have the interest you're all to you the stock waiting And the owning so appreciate, And to upside while happens to X% get not of the appreciate stock they

the I given like the note attractive investment on much from seems the so why notes, question of for question to it raise my That's maybe are of not of we than a we much And buyers recent offering? the the not this for is, that a capital company. atai, so deal good deal terms a So deal able terrific or had more convertible had. not

Horst Zerbe

want you do that? to to respond Andre,

André Godin

had way if I to used will. no make with -- rate. see financing I subscription, standard. interest we there's also around, conversion. Yes. you guarantee an that on X% premium the you it's will convertible we're a you'll appreciated I companies. no often right received we is now, the that raise that is really mean mean, money. a Yes, actually in interest stock And there's And mean the that yes, I the look money instrument but has mean, I since privileged note is announced

than $X.XX. lower the stock was So

loan noteholder. So we have with note. for atai actually it's And but paid basically premium the -- get the interest also a the we stock subscriptor, not same to a mean good the I everyone, moving rate. for they see at that's to only up, good the

when million, source trying of And including invested we're is program, basically, our the program, was atai's all So to Montelukast initially our it. not financing. but part for that $XX.X atai diversify of

the investment big money proceeds there decided with feel the go to sufficient So Montelukast we we the use we didn't raise since the atai from And want to out with upside to is study. that that trial fund a resume to study, [indiscernible]. and

Unidentified Analyst

than that have as $X.XX money, okay. I lower to just next able whereas or felt of if than -- Yes. the I'm It it X% that to stock I but while X% just question, And that I convertible going was we But everyone. been or the that, giving should good for be needed stock, we for the don't me the appreciate, conversion. seems my standard, get to either we're maybe might be higher waiting to notes X% own but to since get you're holders do. appreciating is a the right, why advantage,

to just bid, get were able this terms able to right, So better and I was was befuddled we why not But as get. we was it were competitively assume, to obviously, that I terms.

André Godin

Yes.

forget X of that equity, raise stock. common comes it rarely not Let's unit a as we when

coverage. there's if almost So warrant every not often, a time,

it's case atai, either warrant, So full the was warrants. it half with warrant. XX% about a coverage In a of

so is via to not pay it's when there's no route convertible us warrants, part you and shareholders. tricky being a issue the always So dilution when dilutive stock to than note converted, much back you the for and because possibility it more the go

So much flexibility, we would a don't standard go be it public we for offering, us gives which if dilutive. the which have more

Operator

Levin Our comes question next from [ph]. Jeremy

Unidentified Analyst

Yes.

a when a line steps to the would time study there's had what on conclusion. Just comes quick I kind give any if to can of us the be know you question. to and wanted that VetaFilm next

Horst Zerbe

She over respond of that actually negotiations the VP Corporate the to Development, What be and Business has question I do would animal is Dr. that to like been on to all company. Dana call. with happens to Matzen. turn to health also she and our handling

you can that? to Dana, So respond

Dana Matzen

course, yes. Of

companies. and Horst So we we with as are expanding -- our on several are in discussion are we actually mentioned, in VetaFilm,

animals that the the running So company there, next we a some in how from the line cats. successful, would perspective, in time it's They out September, Cats But with cats if of are dose. expect need the performs imagine that of to see I some is the to -- can challenging coming And probably quarter. start would to October, doing study we see announcement we and in sort they're the in the very outcome platform negotiations. see trial. then would that also

see moment, we tuned. But stay nothing done the signatures. BD, at until in So is

Operator

Our next Colin from question [ph]. comes Taylor

Unidentified Analyst

two company's help the to a And I've long-time flow? over XX% make in objectives? question the And questions. is is a as the you me on that? cash giving have business. me what and Been Is maybe investor, away what My business shares took years, next Could years I year, objectives profit X the been are the first surprise. positive please of confused kind by on off it company's

Horst Zerbe

Yes.

think I answer that a is are We, simple. I good think, to the turn fairly the to company way around. on

Those film. We the film ongoing launch to mean launch migraine activities continue. and for I reported will our launch cannabis several I are expect for points. that imminent -- activities

response see be to and want in X-year Andre, we frame, to add but So to that. that, to my company you turned the -- would time profits. expect that if post around to the have

André Godin

that. the mean to I can I only thing Yes. add

were mentioned were is you the XX% that investment. things by one the you by surprised -- You surprised of

strategic it see a as For us, we partnership. really

of So the bring in a term. short, long pipeline atai mid- products and in will

that perfect generate, with. in with was would support margin. and and start time split us came and -- it they're and a us when long the to was the obviously, royalty with they when money, willing investment, the difficult, And I situation made also, the in us, probably So atai the and term. development at they eventually, timing work manufacturing revenue because will for mean, revenue But be commercial, to go of

So we for a company the saw really for best. as turning point the that

Horst Zerbe

to an important can doing If add what I we're that of here. briefly just it's aspect really because

For And competition. making company not a atai purpose through space. partnership them the IntelGenx, that, a the some defined drug clear can initial and have has in moving company ownership. that, psychedelic cheaper role The a is first as as we objectives And leadership mentioned us the challenge a and the occupy allows claim play plan to just atai we and company been strategic making become the I the where forward, around. the us with significant turn we delivery niche that The like than space. has films -- a little a before, for to and, as with to find investment, psychedelic

Operator

Our next Robert question [ph]. from comes Buzby

Unidentified Analyst

Horst. ago, you today, produce find bit you have confusing. Dr. with number to A exclusive still have to psychedelics. IntelGenx Cybin? Cybin partnership atai of with mentioned Yes, psychedelics. a an entered into you And partnership a Do that that months I relationship with produce

Horst Zerbe

formulation extent, we or can that use one. down Yes. at formulation is little glance, it line our deal atai the and limited I have with exclusive initial rights I'm that but property. that an that intellectual There have Thanks Cybin is agree, have sorry, no question. commercial have sounds there a -- clinical with for a relationship they that we the to situation. to are Cybin that atai would here To for evaluation. is The developing no with commitment a confusing, And is first to

enough? clear that make I did So

Unidentified Analyst

strips will Well, so Cybin? producing eliminate of that the the for possibility

Horst Zerbe

atai the the space. them deal into limited enter was Cybin had previously we're for to into that was entered experiment exclusivity a that the psychedelic we to that us feasibility Unfortunately, conducting. give we partnership with this Well, condition with for

Operator

Our next comes from question [ph]. Eric Herb

Unidentified Analyst

I had questions. two

the curious, just uplifting. was on I update First, TSX an

last this period outlook mentioned the that been what's holdup? During of a could Or a call, you at it the done be time. Has shorter in stage? there

André Godin

but initially Yes. told not were process we There no long. is holdup, that the as would take

qualified, since we those meet -- that you So especially need atai in to obviously the and criteria, uplist, investment. we order and criteria there's to after met

provided. overworked, it that really and now. to they're longer we're weeks. think I with taken last happy is just told to been processes has X think the maybe has application, we process they They X review going front be seem have little But we're to after close. to which they go than and you at the very So now, the of will take the that it But I which expected. they give everything But right little have don't. a bit or this the bit was uplist committee, Everything they in a stage very,

to X we X So then weeks days, it's and after trading everything that, could potentially after that. goes within probably according plan, start to few if a

would hopefully, accomplishment. a a were it definitely based as this So because we an what know to on the is I we mean to what be us told time not I surprised took. were the now, that's we that little by initially, quite this but but bit have respected admit came line time, it time surprise

Unidentified Analyst

large Zerbe, on large mentioned to that and it information to track. Well, order, second the was hear is? indicate able still and any the that's any Are a order. you And you second that how question that weren't you Dr. then it's there great order Heritage. on a more issues on said

Horst Zerbe

is obligation. a believe I Dana, there confidentiality

shipped. to not and is disclose the than be larger So initial it, that I comfortable very but significantly would order manufactured we it

Unidentified Analyst

market. to had and And that the those you end March, the order that Is shipped was still ones seen Are going I've said? Australia? what on first at that not of

Horst Zerbe

would commercialization At that Yes. as make whatever -- The of That think, Australian to the and requirements seen product require. Australian of that practically all quite now other regulatory partners practically almost, haven't with TMP you interacting it. process sure I well, completed. least as far GPP, reason meets Australian is any simple. are authorities is why The

the expect to market soon. we pretty So on a see product

Unidentified Analyst

Excellent. release in news release August. they've the And a from release I read the that then Cannabis had announced? that for about CBD film manufacturing of Are Heritage you

Horst Zerbe

so your Can repeat question. sorry. really you question? broke the I'm please off didn't You get I partially,

Unidentified Analyst

of we're Heritage website, about the release On for Cannabis that in news a the now? what film August. CBD was or there impending Is manufacturing release imminent

Horst Zerbe

any I'm anything you Dana, website. know aware about the I'm Can I'm know there Do such that? on about with not of to is, respond that. that? anything of you but that. that? not Do not familiar you just I'm sure note aware Heritage

Dana Matzen

Yes.

about So and our out launch they Heritage had brand, a product. already I the name note brand [quite the the business think have a they and update, I That's think mentioned sure]. for

in I mentioning is it. checked are Yes, yes, we for they So manufacturing this but the brand. announcing you correct that now. been they're have -- haven't it are this launching right that recently, and launch

has just Heritage So us. only CBD the from

Operator

comes Tyler [ph]. Our Hugh from next question

Unidentified Analyst

discussion quick talked Yes. couple of potential A that? about to Tilray. with call, in Dr. earnings follow-up on last questions. report Zerbe, the Anything you

Horst Zerbe

about talk ongoing ongoing, disclose with me let The, is that. about proceeding. an can't conversation I I That's say, but Tilray anything cannot that.

Unidentified Analyst

two and Is on partnership I table and your couple additional they'll think any initially, appreciate or -- products a for with there projects? four back other to coming pipeline other. chance the I that. migraine development Okay. to is quick chart, there one we're the with Insud, questions was be on And the down that requests

Horst Zerbe

right imminent. on I is but focus mentioned migraine mean which, the now, as possible, that is the film I quite is getting out, really before,

the That's expect And a follow-ups. very to also I potential right September market the which discuss don't -- it we then I in early in to on well. development U.S. think be product be would progressing have a is any focus think now. Spain. We quite ongoing subsidiary, with premature the

Unidentified Analyst

partners I Dr. The Okay. any And there, VevaDerm, product? that answer you potential last question. appreciate my Zerbe. on

Horst Zerbe

I'm sorry. Which one?

Unidentified Analyst

the for VevaDerm. transdermal the you The have, patch. on-patch patch

Horst Zerbe

that. in again, That the Yes. Dana, negotiations on Yes. are you is directly involved ongoing.

ahead. on comment status, want you the current go to so If

Dana Matzen

or would give moment, negotiations, Yes. I be to would At to who indications we we're -- it announce early further in to. too talking but any are this

the it's working we're So all works, but still in on it.

Unidentified Analyst

other real them? If chance any Or back gentleman's you a is Phase on locked up go that production IntelGenx Okay. the quick, VersaFilm, And to question there are by the successful IIb into would IIa that going with Cybin. atai? and is their agreement using

Horst Zerbe

an this point, not agreed you, all, to making contractually At do earlier what such study. is we But in situation a upon stands the is frankly, very first at for And a -- this point, what's of material now, the you correct that think for study, can but unlikely to Phase going it's II. -- as for right future, I you a we're what never happen know the have that we scenario.

Operator

Brent from comes question [ph]. next Our Gakey

Unidentified Analyst

was now early I seems quarter, It target date was I end back. in Earlier and it this you September. to confident the or launch is like going and getting RIZAPORT keeps June, year, the third think, that wondering it are was into we're just then how -- in September. moved of sometime

Horst Zerbe

Spain remarks closed so sense it one and no one That introductory only as the is reason launch launch, least That's that and -- to as is launch the but in we mentioned correct. whatsoever. the why that a is know, at in is are business occurring we as August. in Everybody and doesn't September. vacation, only reason my why I on that is certain the product simply in August. to in virtually Spain that is activities are make any There far

as can is our high repeat possibly you this at myself, confidence I level as point, think. So

Operator

to was back to closing question. turn That remarks. our Horst like over final for I'd it

Horst Zerbe

Yes.

and XXXX again, with we'd So to like on And to support. stakeholders thanks the our everybody. shareholders all call. to that, our for conclude call everybody your QX and continued Thanks

Operator

We for your you This call. participation. you. Thank today's concludes thank conference

may day. your great disconnect have and a You at time, this lines

IntelGenx Technologies (IGXT) 5 Aug 212021 Q2 Earnings call transcript