India Globalization Capital, Inc. (IGC) is a company that operates in two dimensions, the infrastructure section, and the life sciences section. Infrastructure section includes sales and purchase of different construction commodities, highway construction contracts, and renting out construction equipment. In the life sciences section, the company develops cannabinoid-based products used in the treatment of patients with anxiety, dementia, depression, and sleep disorders.
During the regular trading hours of December 8, 2021, the stock was traded at $1.28, while at the time of writing, the price of a share in the aftermarket slightly surged to $1.33 (3.91%).
On December 8, IGC announced the preliminary results for Phase 1 clinical trials of IGC-AD1 which is a patented cannabis-derived investigational new drug candidate to cure treat the symptoms of dementia in Alzheimer’s patients. The pharmacokinetics and genotyping insights will further be used to determine the optimal dose of the drug for moving into subsequent trials subject to the approval from US Food and Drug Administration (FDA). On December 2, IGC shared some other insights from Phase 1 clinical trials of IGC-AD1, mentioning Tetrahydrocannabinol (THC) as the most important constituent of the drug and it is used in microdose in the drug as low and high doses affect the physiological processes.
On October 30, 2021, IGC announced its financial output for the second quarter of the fiscal year 2022 which ended September 30, 2021. Some of the key financial features are:
Revenue, Total Current Assets, and Cash equivalents
Revenue generated by the company during Q2 2022 was $56 thousand as opposed to the same quarter of 2021 which was $125 thousand. The total Current Assets announced by the company for Q2 2022 were $21 million. The cash equivalents reported were $14 million.
Gross Profit and Operating Loss
Gross profit as mentioned in the balance sheet for Q2 2022 as opposed to Q2 2021 was reported to be $38 thousand versus $26 thousand, respectively. The operating loss reported was $4.3 million against $1.6 million for Q2 2022 as opposed to Q2 2021, respectively.
As expected from the India Globalization Capital, the stock price may further continuously rise in the future, because the Phase 1 clinical trials for the newly developed drug are showing positive results in Alzheimer patients and this may be a benefactor for the company in the health care sector.