Join our daily newsletter At The Bell to receive exclusive market insights
- Incannex Healthcare (IHL) signs a business deal to buy US-based APIRx Pharmaceuticals in an all-scrip transaction worth roughly $125 million
- The company first flagged its plans to buy APIRx back in March and has now signed a deal to issue the sellers over 218 million shares at 57.3 cents each
- This price is a premium of over 59 per cent to IHL’s last closing share price but a discount of more than 10 per cent to its March share price when the deal was first announced
- Incannex says once combined, the two companies will form the world’s largest portfolio of patented medicinal cannabinoid drug and psychedelic treatment protocols
- Shares in Incannex last traded at 36 cents each on Wednesday, April 11
Drug developer Incannex Healthcare (IHL) has officially signed a business deal to buy US-based APIRx Pharmaceuticals in an all-scrip transaction worth roughly $125 million.
Under the deal, Incannex will issue the APIRx sellers over 218 million shares at 57.3 cents each — a premium of over 59 per cent to IHL’s last closing share price of 36 cents.
The shares will be escrowed for one year following the completion of the transaction, which is currently expected in June.
Incannex first flagged its plans to purchase APIRx back in March, with a formal deal for the purchase now signed by both companies. IHL shares were trading at upwards of 66 cents when the deal was first announced.
Incannex CEO and Managing Director Joel Latham said the APIRx buyout presented IHL with clear long and short-term opportunities for “significant” value growth, particularly in light of APIRx’s 22 active clinical and pre-clinical research and development projects.
“Several drug candidates have shortened regulatory pathways to break into areas of patient need representing very large global markets. These candidates are our initial development priority,” Mr Latham said.
“Incannex’s strong cash position allows us to pursue these near-term product opportunities at the same time as moving at pace to develop the Incannex combination drug candidates.”
In a presentation to investors, Incannex said the APIRx portfolio of patented drug candidates covered a total addressable market of some US$400 billion (A$577 billion) a year.
The company said together, APIRx and Incannex would form the world’s largest portfolio of patented medicinal cannabinoid drug formulation and psychedelic treatment protocols.
APIRx’s portfolio includes a string of cannabinoid-based chewing gum and chewable tablet products.
The chewable drugs are designed to help with a range of conditions including atopic dermatitis, glaucoma and dry eye syndrome, and addiction recovery.
Shares in Incannex last traded at 36 cents each on Wednesday, April 11.
