IGXT - Earnings call transcript Q3 2021 | IntelGenx Technologies Corp.

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Operator

Good afternoon, ladies and gentlemen, and welcome to the IntelGenx Third Quarter 2021 Financial Results. At this time, all participants have been placed on a listen-only mode and the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Stephen Kilmer, Investor Relations. Sir, the floor is yours.

Stephen Kilmer

Thank you. thank joining and call. on everyone, afternoon, you us for today's Good me Dr. are the With line on Horst CEO; Dr. Tommy Kenny, Zerbe, and our President IntelGenx's General and Andre Counsel and our Godin, CFO, Business Dana Company’s Matzen, Development. Vice of the and President Corporate

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

a SEC of is that close regard. quick The because Day. Memorial in today, administrative Finally, note

QX Zerbe. be So to for would over like SEDAR to that said, won't morning. filings accessible I now and on turn call the until Horst. our tomorrow Dr. EDGAR With

Horst Zerbe

update pipeline and our discuss Thank conference on IntelGenx corporate third joining the will call. I made thank you, quarter progress have key On afternoon, and Steve. us Good everyone, a provide XXXX for we you for the projects. today's call,

results. line we your for that, review Following XXXX open will questions. Andre will the up QX Then our financial

Frank Stegert Directors. Board On August Xth, First appointed on atai of we partnership. our the delegates two to atai

them was ownership provides Their industries. of is one representation the to Mr. stake and to - and a Rao as biotechnology in experience its board the Srinivas entitles of committee. our Dr. compensation Officer. proportional atai XX% that are they entitled in agreement process Life to on atai seats. pharmaceutical Scientific IntelGenx’s to serve Rao currently board As reminder refer partnership the He Sciences their as company. position Chief serves we two with improve cofounders

President Frank's Operation. an with Life financial amended which We very future conjunction We serves our to $X execute we in and support we meet needed requirements in restated Vice and our uplisting to atai's also to welcome to contributions on secured IntelGenx. loan September, Frank loan growth this Investment committee. strategies. Stegert, atai agreement with Sciences secure to forward as audit into Frank Srini's We continue on in our TSX. million entered Management In order much to of look certain the facility committed and

in to of an those swallowing. estimated countries the from to Now countries products versatile dysphasia are IntelGenx suffer suffer expected offers Union RIZAPORT, Exeltis and this Spain. in is migraine who pleased based well moving pill administration, continuing flavor drug is to neutral has as market. this approach first European nausea, launch attractive partner that in our the it earlier quarter in commercialization to favorable of additional VersaFilm and therapeutic RIZAPORT European a for milestone to major difficulties We for a especially forward not require to EXORDIA for launch by support migraine Spain as those RIZAPORT that as market global is patients does believe XX% in we future. on alternatives RIZAPORT The or This of consuming RIZAPORT billion XXXX, water. looking finally for swallowing in patients, US$X.X pharmaceutical related migraine the Because mode the announce XX from who launched were of we in European

licensing This supply for and Oral prostatic moving Therapeutics a for available benign approved health of is BPH. partner that to Tadalafil conditions. and an a hyperplasia co-development you leading with Aquestive Films or from important dysfunction for that the we announced agreement Oral make commercialization remember definitive undisclosed on as Tadalafil, to these Now men development company. entered in men's erectile an September, will Tadalafil, suffering - is Films help will Tadalafil treatment with Aquestive into

U.S. study. risk In in we with of mild continuing hold group notes looking will Now IntelGenx target because with oral we COVID-XX. August, severe film is a finance completed clinical closed work to offering commercial of placed XXXX, partnership company. which cannabis for be of million Heritage an to with from BUENA to initial And we CBX be August, Heritage cannabis films, of On in of used to $X.X Control helps Filmstrips IIa of to a Cannabis a from development patients condition Phase disease, the we forward QX with are shipment to in support CBD launch the In Alzheimer's higher This investors, the moderate on Montelukast, trial products. stage proceeds population brands considered Canada. Montelukast study convertible in our illness on

quarter, previously This a Canada. amended this by which higher we cleared with under is the proceeding Health daily for patient resumed dose study, protocol screening that was

financial And excited much trial now like the Andre. We with turn Montelukast call Andre that, for are resume of to and to this evaluate our as needed of treatment very Alzheimer results. disease to I review for potential the over patients. would

Andre Godin

Good Thank everyone. you afternoon, Horst.

manufacturing XXXX. licensing million depreciation by mainly versus in XXX,XXX it increases will performance of XXX,XXX agreement. to XX,XXX offset XX% tangible R&D a XXX,XXX mainly corresponding XXX,XXX revenue an to expenses, for I decrease increase in sales was the milestones of the is and financial few and SG&A were quarter partially amounted Operating XXXX the from period to of of and As XXX,XXX quarter of for third assets. period same for mentioned, was in revenue minutes increase to That revenues That a in in last XXXX. discuss million is compared XX,XXX. X.X in three The QX of attributable of attributable X.X month costs expenses increase XX,XXX of product expenses, for XXXX to Horst Total XX,XXX and Company’s third revenue year. take an the

factor for the One we just expense not assistance but operating programs the to was related here XXXX COVID-XX government XXXX. in receive of in in that the increase

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

short-term investments $XX XX, of As million. cash Company’s XXXX, September totaled and the

everybody As following turn million by uplifting Dr. IntelGenx will shares milestones broader the debenture to by which help X.X a last and conversion, among total this investors. of we increase issued the the no the end Zerbe the I debt month, our graduating has to were quarter, Canada's TSX. devices achieved call believe approximately institutional approximately reduced We and range knows will now back Horst. million. following X.X visibility premier of more exchange. major stock Also,

Horst Zerbe

to call Andre. And remarks our to would to for long-term I follow to you. In for remind our recognize our like you closing, continuing apply like forward-looking execute once over in turn team strategy. questions. that, and QA. will Thanks statements to I our both I the that with again would now Thank prepared

Operator

[Operator Instructions] Thank you.

Your first announce your your question. Steve. question coming is from Please pose affiliation and

Unidentified Analyst

pipeline of company is Steve. going future My question anticipation that this stuff in Good the the all have of is this this estimate your with you afternoon, price. What stock company? ahead

Horst Zerbe

you that. want to you do to share questions, price probably Andre, so have respond should asked related

Andre Godin

know, not on The going over discuss I to XX-months. the appreciation to the price Yes, I that might market at cap an where of the interest and are think the basically share focus we working has in the mean, past make company. execution. very go are But you we end day, drastically hard we

that I team next all proper their believe price this is execution the are we share appreciation discuss main price in which what be properly and execution, the company. able mandate committed appreciate. and see of IntelGenx But in done think what to kind is see years. with of this I the is we is wouldn't but position will that And share optimistic a be to obviously So we I that few appreciate should very have could to our

Unidentified Analyst

Okay, thank you.

Andre Godin

welcome. are You

Operator

pose is question question. next coming affiliation Your [Alan from Please announce your Taylor]. and your

Unidentified Analyst

Two questions. and Hi, is [Collin name longtime a my investor. Taylor],

team would question to answer. opposed the stock you can be, personally - the question my stock into first options? management That plan to And fine. second of does is company this The buy

Horst Zerbe

Yes.

the of doing that been stock to degrees. or quite to response have my some team, entire for would that So doing and executive we some are owns that we management be,

is member single shareholder. the So every in we therefore, the company believes company there of a strongly strongly and

Unidentified Analyst

more would and like I that price we at confidence buying, Okay. maybe see of especially this with just typical to at at are companies point. executives that for a of

books do And plan lot next to do just question. What be we my a on cash would have now. Second of the cash? with we that

Horst Zerbe

Andre.

Andre Godin

in reason position advance money where the obviously programs. why to can be we mean, all is a we our I lose

right have And So that. and are burn you we still this now, is rates. know, doing we we are what to as committed

expecting And money we we cash are use until get that to that happen So there. flow XXXX. to positive, to in get we

going basically to to bottom-line. flow help to to positive be which positive us generate is be cash able point. the there So, position, should We cash get at

Horst Zerbe

that. And maybe more specific and add to

cannabis possible that We is programs programs, we are efforts in support as the our focal extent, used the strategic besides a into have animal to get three quickly on these focusing advancing of large health, very those psychedelics, we available previously. that as market and money areas, discussed being development and

Unidentified Analyst

could States drugs, if allow has this Canadian been And one Is buy I a changer just in which game Because more law does there. if question Americans change? in does Okay. politics. that United to discussed throw not

Horst Zerbe

affect along so products wouldn't still us can and sell. I as and because and partner all much, doing supply U.S. distribution with been commercialization all partners have mean, with channels they that up we we their then that can our

market you discussing I of are is that to the think concerns customers. Canadian really the that purchase because not U.S. by applicable us, product intended is for what finished

that not with all. are dealing at We situation

Unidentified Analyst

your Thank Okay. you time and answers. for

Operator

question. your affiliation pose [David Mill]. Your next question coming is your announce Please and from

Unidentified Analyst

is Could how afternoon, call. name happening, all within you us positive year, few an compensation, and months. question My part one at year? are now they is met QX from new involved board the of couple the I'm involved questions. milestones are a Two thank longtime for a how IntelGenx? the of compensation of QX executive may looking that last next in Mill have team, and or they second any especially give investor. early be them the with within or are this of and things Good of being you we And with With activity, and David members leadership the that compensation the idea the atai executive

Horst Zerbe

They treated every would being compensations entitled in the directors. other other place Board. direction for all same are be that to we our They scheme have for

Unidentified Analyst

can they Well, not any interrupt in if compensation Dr. I'm board so Zerbe. much executive have Do sorry, determining the I involvement compensation?

Horst Zerbe

be would our eventually compensation them our that board on have the is Yes. would doesn't executive sorry, we to involvement. audit, extent, alone, decide on said. committee I'm full then Particularly But committee which that of the comp comp is on one and serving it training

have direct, input both compensation. executive client yes, representatives So say a and in

Unidentified Analyst

any of terms more quarters? in milestones, do then And progress foresee in two the you you. next Thank

Horst Zerbe

Dana, comment do to upcoming want milestones? on you

Dana Matzen

comment that. on I Yes, can

programs be really milestones, on have, nothing questions, a where we things is still will you that announcement our batch programs but to to see got some hit answer requirements, So those but internal we much foresee will that forward, there we push milestones milestones, QX, certain meeting progress I during won't of lot submitting announcing.

Unidentified Analyst

you. Thank

Operator

coming is [Adams affiliation question. question your next please Tobero], and announce pose from Your your

Unidentified Analyst

cover for Hello, I longtime is my your on questions you a other on And Two name Tobero. stock media shareholder. Adams I'm guys. platforms. also social

continue PR? reading with that? Because the plan of is, it can very with up, on and give that any atai much is is, we going could so guys on clarity what but message? because that were on spreading be not deal, you and quiet terms understand question to that feel going might you second guys you atai? was And I through are I ramping point be or you the Cybin when you relationship first with what better like relationship the any seems up on question any of awareness might allowed evolving in guys do on at doing company, The end Cybin

Horst Zerbe

prototype, will extent in I very Andre, to agreement, development formulation I them. under to of probably a them have the clinical we Cybin with that relationship. any In a They PR, the It the completion the is study. for Phase are clear. the to development we to we Tommy, of them providing upon agreement let that place that formulation that rights comment. have regards And On a is is for to commercialize not the agreement end developed do supply material services and/or that we them development Dana of

For questions Tommy be answer to any regarding the would that relationships further General questions. Counsel or available for

Unidentified Analyst

relationship forward to would aside, put, you you continuing be and else. say then stop, that something that guys atai, to relationship, atai in you would for atai the anything the or stuff say, like the segment? a of doing conflict be once Where wants do the move Because with finish

Horst Zerbe

been that has but contractually, contract on comment Tommy The situation will addressed further.

Tommy Kenny

obligation current current discussed we Anything than agreement at But have is the to further time. which anything with Cybin. our currently with Cybin with that We this our are the atai. will in completing don't partner, with future foresee be

Andre Godin

In could been recently not it have working been are we over, disseminate [indiscernible] is hire And should the help And great during was to IR XXXX. But will COVID. travel better. though our are have road. story. maybe Even is And firms have as it Because able, ambition reduce well. us because of budget obviously, haven't probably to we more obviously, and we obviously exposure pandemic. that for to go obviously, disclosure but right, the the we regards on more you PR looking and back we we

you communication and is company is media and more that the hear addressing put at us. So level. will trying and I after more higher that will think see a that team more now us you of more we also and And of a really basically to have

I in IR our change XXXX So a approach. think big you will PR see

Unidentified Analyst

very you thank Alright, much.

Operator

Your Please next your [indiscernible]. affiliation your from and pose question announce is coming question.

Unidentified Analyst

regards into I'm light Investor. in I Horst, sales QX number saying. last Hi. and I’m to a quarter. [indiscernible], launch shed you guidance the question Could the and some on report on going the Private a the this had Congratulations XXXX?

Horst Zerbe

to early with can comment numbers, on you It but is very meaningfully insight some Dana there. provide

Dana Matzen

Yes, yes, absolutely.

sets you, distributed we are ordered first the commercial distributed rights Spain. the can get patient to them for other day, European a in launched which It of first to Xrd, demand have kind now how so commercial sizes, RIZAPORT lot was So very September Union well full the they the the expand effect is we the received in of the the territories the port, into are we are best because up. to discussing a in during usually launch, you it. units being remaining fees, given quarter, But or goes be to as for pharmacies, the

the will more too moment. I insights it into and next the So to in think we are I commercial be we but phase really is quarter, turning, use this the know how at early at that full they in moment, have

Unidentified Analyst

you, with Okay, with you to company regards and QX? in another Dana, question going is the to that developments for partner that VetaFilm, are possibly in any the

Dana Matzen

agreement this having on, animal this working set further and develop and we We stage. because and to signed with active, mentioned, Horst as it company we are, a product disclose at several moment, with didn't very we an moment, early key a them. announce who is this So at are previous contracts, can't we health, have about R&D this program discussions a we companies are

I two how companies little discussion other we with until and development say. can for but So we can stage, you business and agreement companies. know are And as you disclose. is least we product U.S. are That at advancing science, late much have in on is the there

cause several on visible, our larger a show So be yes, we to more technology. consultant to also are us help acting hired animal we companies us really health give fronts, a

but in activity, of lot year. next hope announce a can is we there So early I something

Unidentified Analyst

guys to do to when to And In And back the Horst application patches How the that anticipate U.S. going? FDA? you the resubmission. regards to is Okay. manufacture that RIZAPORT the you. resubmit for you

Horst Zerbe

We literally, of go, those the as preparing three final stages speak. are in patches we

few that next over with that the will involved are wrap weeks We up.

on a you That The on I'm can put as is not the on, case first before it resubmission. response. first patches. several personnel It resubmit will stability throughout sure the already to We you be infection a generate stability, year. next need to patch months is response know, those or is data the complete

on sure. So and sometime will FDA resubmission for meet we happen the mid with decide next will which then year,

exactly, of it half to year, second too say. next the is when in Sometime early

Unidentified Analyst

And Okay. more questions. just two

So Heritage. to regards first in is question

that the quarter. light that How you had said and in larger and is from going on can a order with them QX, your some You guidance significantly further relationship the on shed you third them?

Horst Zerbe

like to deferring Yes. I would to Dana.

Dana Matzen

My pleasure.

didn't order, absolutely storage, launched at moment, in issues So had anymore. At some are have is we on launching interest both storage business. Heritage sites is space more. our Canada this which import that given could our a in they in their a from this we product, potentially or exploring but have for we back they that high future profits. rest right, still other this have large once It The and coming quite very delivered get that large would some territories Canada, order, other be they moment, companies territories, large good

quarter first other launched, relationship versions We waiting forms similarly and a launched, for to sales we are Spain, waiting film. for including of Australia for we But are for to of also in expanding report. our RIZAPORT the looking other the film Canada the at now,

well. it And so is far, doing

Unidentified Analyst

the in looking launching that Missouri? the launch when because U.S., And Heritage do the into I see cannabis it of heard in you product Okay. was

Dana Matzen

Yes.

export this into - products you at the U.S., So U.S. but shed too, not some are can know, the Canadian the as moment and in to we on Tommy light government allowed this cannabis

would have manufacture to locally. we So

at to a We a have been money lot of explored or we manufacturer make transfer always the our it has with on another the is market. discussions technology. that the of there board, and put sure we from move that want right option to and the company do do transfer involves facility, changes U.S. quite and to a do because bit It if legislation tech time for tech we because it

we So the case was wanted make right. to sure that business

Unidentified Analyst

and is the definitely to for is signed partnership deal definitive the in What Aquestive you you Horst in out agreement with and shed them my getting question and is Got this just that for IntelGenx regards on if can final this what your some light for like Cialis. agreement, of IntelGenx?

Horst Zerbe

to Dana, is that programs. again would to because I her is like of refer that. handling She main Dana. one

Dana Matzen

Okay.

partnership program true partnership think the the proceeds years share two signed the So receiving also to Aquestive Tadalafil, ago, on is Meaning of point Meaning are we an agreement going are to we go we a from that from partner. any we I any we ago, related the program for, signed, we while XX/XX XX/XX. a forward. will are we costs are moving really that that share that that are But XX/XX. will

competitive right don't bit give found head right been longest away we commercial the a man's quite the they very disclose both so partner, being the closer understood. for We which product it that to for company. find a companies ready time advantage, So they We, to at to little wait the is allowed have commercial not partner. active are point this active to wanted launch,

have shared company come the the or and sales net of the us is XX/XX between commercial what will we partnerships royalties in Aquestive be for product financial, So to IntelGenx. launches months the if what

Unidentified Analyst

the get million IntelGenx of received? any they did that So X.X

Dana Matzen

we got Of our course portion.

Unidentified Analyst

And of luck, Alright so you I you. of that company wish thank the guys we bless progress proud much. the are making. and God the you best very is

Horst Zerbe

Thank you.

Operator

and coming your Please [David [Operator question. post question is your next Instructions] affiliation Your announce DeAngelo]. from

Unidentified Analyst

investor. private David Hi, DeAngelo,

or Aquestive current that follow-up received? the quarter Just from show Is that a will on the were proceeds quick next in that reflected royalties. up the that

Horst Zerbe

next the show quarter. up in Will

Unidentified Analyst

I do question. a actually And new have okay. a other questions on, quarter, my then all follow-up answered, Next were but

Regarding chart anything that the of them, ready the appreciated. the you or I two even be possible not on XXXX to pipeline say launch. or timeframe might say but possible in you coming There is or calendar undisclosed say both about terms XXXX is occur listed timeline what will about expectations expected your as know. of Can expectations launch up during you on during should be that do to dates much that they revenues the could products. launch or year? could pdufa Anything are in

Horst Zerbe

reason for obligation They a the reason confidentiality. that are undisclosed have for we contractual and is a

can programs but making with. is very very So on were I we dialogue is accommodate What that I'm say all in I apologizing that, are that really But can it. close for cannot qualitatively really say. close, those in we progress

Unidentified Analyst

Okay, alright.

it everything And I was think answered. than else that year. about is next looking to forward

I exciting be year. you. it a going think Thank very is to

Horst Zerbe

Thank you.

Operator

question question. is and from Your pose Announce affiliation next coming Lynson]. your [Sam your

Unidentified Analyst

press my question a releases Any and Spain. in about on kind RIZAPORT I a I I but Dana I it. of And missed number RIZAPORT to of but to CBD filmstrips has I'm Canada And because think touched Spain. being the maybe already, investor. this I something press being Hi, haven't seen confirm wanted just releases to a seen have private shipped about also shipped was that also Australia, about

to to there? and wanted distributed that we pharmacies just is I product So it have Spain being the confirm actually shipped

Horst Zerbe

Exeltis. couldn't as contract you IntelGenx are at our German ships our shipping product manufacturers is but product rather a because see manufacturing press or that release a it manufacturer done the being announcing to not that Yes, European possibly makes we and here by

Unidentified Analyst

I'm IntelGenx aware in wasn't that those royalty I And guess is said case, on a receiving I of sorry. I that. sales.

Horst Zerbe

That is correct.

Unidentified Analyst

see. I

clarification. for the you thank Okay,

Operator

coming [indiscernible]. affiliation question. from your your and you Please Your pose next announce question is

[Adams Your question from Tobero]. a your is next return Please question post question.

Unidentified Analyst

Tilray, relationship question. can Is conversations, is anything are again insight can me Hey Tilray say there there another any thanks the at all? any for you about with you or again on you letting give ask having conversations

Horst Zerbe

there any he sitting general is, a Very it ongoing. communication head. I'm little, But his to can't we unfortunately, really shaking details. next is is disclosing counsel and

it is really ongoing So that. comment negotiation. cannot on We unfortunately an

Unidentified Analyst

No Thank you problem. Okay. very much.

Horst Zerbe

welcome. are You

Operator

be this would Zerbe for turn There at appear the over queue back like closing time. any questions no to to comments. Dr. in I floor further to

Horst Zerbe

Thank you.

our this work of call. update its XXXX like team once us. team for for of to and investor our entire for to management continuing believe support and Board Like QX thank I would concludes goodbye. So Thank the supporting again their and dedication. hard and continued the to thank you IntelGenx Directors in finally, our investors

Operator

gentlemen and call. ladies conclude you, does conference Thank today's this

disconnect You participation. and at may for your day. this phone you wonderful a lines Thank time your have

IntelGenx Technologies (IGXT) 12 Nov 212021 Q3 Earnings call transcript