First Berlin – IntelGenx Technologies Corp. Research Update (07/01/2021)

First Berlin Equity Research has published a research update on IntelGenx Technologies Corp. (ISIN: US45822R1014). Analyst Christian Orquera terminates coverage of the company.

Abstract
On 27 March 2020, the US registration agency FDA did not approve IntelGenx' lead migraine drug candidate Rizaport and requested additional information. This application was already a resubmission to the FDA delivering the agency's previously requested data. After several filing setbacks in the past partly related to problems with its active ingredient provider, it was disappointing that the data did not satisfy all FDA requirements. A potential approval in the future is conditional upon a successful resubmission. Following Rizaport's setback, management took several measures such as lowering costs (e.g. cut headcount by about 10%) and pushing smaller short-term revenue-generating programmes to maximise cash reach (e.g. Rizaport can potentially launch earlier in the EU following IntelGenx' decision to let the originally registered contract manufacturer - the Spanish group Exeltis Healthcare SL- produce and commercialise the drug). The company also expanded its cash reach by closing a private placement of convertible notes in two tranches, raising USD 1.8m bearing interest of 8%. Regarding its second lead product, the cannabis-infused film, the commercialisation partner Tilray postponed the potential market launch. IntelGenx thus decided to cancel the license for exclusive distribution amending the terms of the agreement to a co-marketing. Subsequently, IntelGenx signed an LOI with Heritage Cannabis Holdings Corp for the commercialisation of cannabis film strips in the Canadian and Australian markets. Despite positive phase IIa results so far, the development of the Alzheimer's drug candidate Montelukast is temporarily on hold to protect patients from the threat of Corona. We terminate our coverage of IntelGenx effective with this report.