The Incannex Healthcare Ltd [ASX:IHL] share price rose 5.5% in early trade after IHL engaged a firm to manufacture IHL-675A soft-gel capsules pending clinical trials.
The development of IHL’s anti-inflammatory multiuse drug product — IHL-675A — is progressing after Incannex hired Procaps to develop and manufacture soft-gel capsules using Procaps’ patented Unigel technology.
Shares in the pharmaceutical development company are up 300% over the last 12 months.
Incannex engaged Procaps to provide an end-to-end service.
This will include formulation development, clinical trial supply, and commercial manufacture if clinical trials are successful.
Incannex said the partnership with Procaps would grant it access to a range of proprietary technologies, including Procaps’ patented Unigel apparatus that encases solid dosages within capsules.
What is IHL-675A?
IHL-675A is Icannex’s proposed medical product containing hydroxychloroquine and cannabidiol.
Incannex recently expanded its development program to assess its potential to help with lung inflammation, rheumatoid arthritis, and inflammatory bowel disease.
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IHL Share Price ASX Outlook
As an end-to-end engagement, Incannex has also tasked Procaps with the commercial manufacture of IHL-675A if clinical trials succeed.
This may give investors a glimpse at IHL’s logistics strategy once its products are ready for commercial distribution.
As IHL CEO Joel Latham today commented:
‘Procaps offers Incannex a complete supply chain solution for a sophisticated, GMP-grade product.
‘Manufacturing at Procaps will support our clinical trial programs and can also quickly ramp up production for commercial supply upon successful clinical trial outcomes.’
That said, today’s update did not disclose the financial details of IHL’s engagement with Procaps nor the financial arrangements entailed in Procaps commercially supplying IHL-675A.
Of course, financial arrangements regarding commercial rollout were likely not discussed because Incannex has many hurdles left before contemplating commercial production.
The commercial supply of IHL-675A depends first and foremost on clinical success. And IHL-675A is still making its way through Phase 1 clinical trials.
If this phase succeeds, it will trigger three FDA investigational new drug applications. If these applications are approved, then IHL-675A will undergo Phase 2 and Phase 3 clinical trials.
No doubt, the market will track the product’s progress closely.
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