Incannex Stock Slides As $10 Million Capital Raise Funds Next Study For Sleep Apnea Treatment

Incannex Healthcare Limited (NASDAQ:IXHL) shares are tumbling on Thursday as the company announced a registered direct offering of $10 million.

• Incannex Healthcare stock is taking a hit today. What’s weighing on IXHL shares?

Seeks Equity Raise Of Up To $23 Million

The clinical stage biotech company will offer 2 million shares and accompanying warrants to purchase up to 2 million shares at a combined price of $5.

If the common warrants are exercised in full for cash, the company would receive up to an additional $13 million in gross proceeds.

Incannex will use the proceeds to complete the DReAMzz Phase 2 study for IHL-42X.

Additionally, Incannex has terminated its at-the-market facility and does not intend to utilize ATM financing in the near term.

Incannex Lead Drug In Sleep Apnea

On Thursday, Incannex announced an enhanced clinical development strategy for its lead drug candidate, IHL-42X, for obstructive sleep apnea (OSA), following positive phase 2 results.

The phase 2 RePOSA trial demonstrated statistically significant improvements across key endpoints, reinforcing the therapeutic potential of IHL-42X for the treatment of obstructive sleep apnea.

The low-dose patient group of 33.3% and the high-dose group of 41.2% achieved greater than 30% reduction in apnea-hypopnea index (AHI), while 13.9% of low-dose and 14.7% of high-dose experienced reductions exceeding 50%.

Incannex Streamlined Phase 3 Program

The company’s IHL-42X received Fast Track Designation from the FDA.

The updated strategy includes a Phase 2 crossover dose-optimization study, which aims to refine the drug’s efficacy and strengthen its clinical data package ahead of a streamlined Phase 3 program.

Incannex plans to initiate the DReAMzz Phase 2 crossover study to evaluate alternative ratios of its active ingredients, dronabinol and acetazolamide, with expectations to begin dosing patients soon.

IXHL Stock Price Activity: Incannex Healthcare shares were down 37.48% at $3.73 at the time of publication on Thursday, according to Benzinga Pro data.

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