Incannex To Acquire APIRx Pharmaceuticals USA, LLC
Incannex Healthcare Ltd (IHL. ASX) (Nasdaq: IXHL) announced that it has executed a binding term sheet to wholly acquire APIRx Pharmaceutical USA, LLC (‘APIRx’). APIRx is an innovative biotechnology company focused on research, development, and production of prescription pharmaceutical cannabinoid medicines. It has twenty-two (22) active clinical and pre-clinical research and development projects utilising proprietary technologies. The acquisition of APIRx brings to Incannex a diverse portfolio of promising therapeutic candidates targeted at treating an extensive range of conditions with significant addressable markets.
Key Highlights:
- APIRx has twenty-two (22) active clinical and pre-clinical research and development projects
- Therapeutic candidates are targeted at treating pain, dementia, Parkinson’s disease, restless leg syndrome, gastrointestinal diseases, periodontitis, addiction disorders, skin conditions and ophthalmic conditions
- Therapeutic candidates are underpinned by extensive intellectual property portfolio that includes 19 granted patents and 23 pending patents
- Proposed acquisition price of US$93.3m in all scrip transaction
- The transaction ensures that Incannex is a global leader in the fields of cannabinoid, psychedelic, and combination pharmaceuticals.
Strategic Rationale
The acquisition of APIRx will significantly strengthen Incannex’s position as a market leader at the forefront of cannabinoid and psychedelic pharmaceuticals. It will:
- Add a large portfolio of intellectual property with approved and provisional patents granted.
- Expand Incannex’s addressable markets to over US$400bn per annum
- Further enhance Incannex’s technical and drug development capability by adding some of the industry’s longest standing and best-known scientists to the Incannex team.
- Expand the Company’s drug delivery capability to include APIRx’s patented delivery technologies.
Addressable Market OpportunitiesSome of the key addressable market opportunities that Incannex will be uniquely placed to address include (refer to Appendix A in the ASX announcement for a full list):
- Pain and Spasticity in Multiple Sclerosis – $62 Bn USD in 2021
- Dementia – $23.9 Bn USD by 2028
- Gastro IBS – $40.0 Bn USD in 2021
- Addiction: Cannabis/Opioid – $64 Bn USD in 2021
- Addiction: Tobacco Smoking Cessation – $47.7 Bn USD by 2024
CEO and Managing Director of Incannex, Mr. Joel Latham says. “With sizeable addressable markets and intellectual property spanning a multitude of unmet medical needs, we’re positioning Incannex to be a significant player in the pharma sector of the future. I’m excited by the acquisition opportunity on multiple fronts and look forward to working with the APIRx team to deliver treatments which make a genuine difference to the lives of millions of people”.
