IGC Pharma (NYSEAM:IGC) Q2 2026 Earnings Call November 17, 2025 11:00 AM ET Company ParticipantsRam Mukunda - CEORosalyn Christian - Head of Investor RelationsConference Call ParticipantsEdward Wu - Equity Research AnalystJames Malloy - Managing Director, and Biotechnology, and Specialty Pharmaceuticals Equity Research AnalystAdam Snyder - Senior Equity AnalystOperatorLadies and gentlemen, greetings, and welcome to the IGC Pharma mid-year fiscal 2026 shareholder update call. At this time, all participants a ...

IGC Pharma (NYSEAM:IGC) Q2 2026 Earnings Call November 17, 2025 11:00 AM ET Company ParticipantsRam Mukunda - CEORosalyn Christian - Head of Investor RelationsOperatorLadies and gentlemen, greetings, and welcome to the IGC Pharma mid-year fiscal 2026 shareholder update call. At this time, all participants are in a listen-only mode. Please note this conference is being recorded. Following management's remarks, the call line will be opened for questions. It is now my pleasure to introduce your host, Rosalyn C ...

Financial Data and Key Metrics Changes - The company reported a non-cash profit of approximately $1.1 million from the divestiture of a non-core manufacturing facility, which was sold for about $2.7 million [20][21] - The company has renewed its $12 million line of credit and is focused on minimizing dilution while maintaining a clean capital table [17] Business Line Data and Key Metrics Changes - IGC 81 is currently in a phase two trial, with over 50% enrollment completed, and the company is optimistic about finishing the trial in the first half of next year [4][9] - The CALMA trial, which focuses on agitation in Alzheimer's patients, has expanded to multiple sites in the U.S. and Canada, with a significant increase in patient recruitment [10][28] Market Data and Key Metrics Changes - The company is addressing a significant unmet need in the Alzheimer's market, with over 55 million diagnosed patients and 400 million at risk due to Alzheimer's pathology [5][16] - The company is developing an AI-based diagnostic platform, MINT-AD, aimed at early detection and prediction of cognitive decline in Alzheimer's patients [13][14] Company Strategy and Development Direction - The company is focused on advancing its multi-asset pipeline, particularly IGC 81, which is seen as a near-term opportunity to drive shareholder value [6][12] - The strategic divestiture of the Vancouver manufacturing facility allows the company to redirect resources and management attention towards accelerating the CALMA trial and advancing other small molecule assets [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in completing the CALMA trial and achieving significant milestones in the upcoming year, which they believe will enhance shareholder value [18][31] - The company is not expecting any impact from recent legislation affecting the hemp industry on its pharmaceutical development and FDA approval processes [24][25] Other Important Information - The company is in the semi-final round for a $1 million prize aimed at advancing Alzheimer's research through AI, with a presentation scheduled for December 5 [29][31] - The company has received recognition for its work, including awards from the National Institute on Aging, highlighting its commitment to Alzheimer's research [29] Q&A Session Summary Question: Will there be another interim data analysis before the trial completion? - Management indicated that they do not expect another readout and are focused on completing the trial and the final readout [20] Question: Why was the Vancouver manufacturing facility divested? - The divestiture was strategic to eliminate $600,000 in annual operating expenses and redirect resources to accelerate the CALMA trial [20][21] Question: Are there plans for Canadian approval alongside FDA approval? - Yes, the company plans to seek approval in both the U.S. and Canada as the trial is being conducted in both regions [23] Question: Will the recent government funding bill impact the phase two trial? - Management clarified that the bill targets the consumer hemp market and does not affect the regulatory pathway for prescription drugs like IGC 81 [24][25] Question: How is enrollment going for the CALMA trial? - Enrollment has significantly increased, with a rise from signing up four patients a month to 14, aided by online advertising and geotargeting [28]

Core Insights - IGC Pharma, Inc. reported a quarterly loss of $0.02 per share, consistent with the Zacks Consensus Estimate, and the same as the loss reported a year ago [1] - The company generated revenues of $0.19 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 56.59%, and down from $0.41 million year-over-year [2] - IGC Pharma's shares have increased approximately 6% since the beginning of the year, underperforming the S&P 500, which gained 14.6% [3] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [1] - IGC Pharma has topped consensus revenue estimates two times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $0.31 million, and for the current fiscal year, it is -$0.08 on revenues of $1.5 million [7] Market Outlook - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for IGC Pharma was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The Medical - Drugs industry, to which IGC Pharma belongs, is currently in the top 34% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Revenue and Profit - Revenue for the three months ended September 30, 2025, was approximately $191 thousand, a decrease of 54% compared to $412 thousand for the same period in 2024[130] - Gross profit for the three months ended September 30, 2025, was $99 thousand, down 50% from $198 thousand in the prior year[130] - Revenue for the six months ended September 30, 2025, was approximately $519 thousand, a decrease of 24% from $684 thousand in the same period in 2024[135] - Cost of revenue for the six months ended September 30, 2025, was approximately $266 thousand, resulting in gross margins of 49%, down from 53% in the same period of 2024[136] Expenses - Research and development expenses increased by 73% to approximately $1.6 million for the three months ended September 30, 2025, compared to $917 thousand in the same period in 2024[133] - Selling, general, and administrative expenses for the three months ended September 30, 2025, increased by 35% to approximately $1.4 million[132] - SG&A expenses decreased by approximately $93 thousand or 3% to approximately $2.6 million for the six months ended September 30, 2025, due to operational efficiency efforts[137] - R&D expenses increased by approximately $633 thousand or 35% to approximately $2.4 million during the six months ended September 30, 2025, primarily due to Phase 2 trials on IGC-AD1[138] Other Income - Other net income surged by 2,407% to approximately $1.1 million for the three months ended September 30, 2025, compared to $43 thousand in the prior year[134] - Other net income increased by approximately $1.3 million or 2,170% to approximately $1.4 million for the six months ended September 30, 2025, attributed to a tax credit and asset disposition profits[139] Cash Flow and Assets - Cash and cash equivalents increased by approximately $700 thousand to $1.1 million, representing a 173% increase from $405 thousand as of March 31, 2025[149] - Net cash used in operating activities was approximately $3.5 million for the six months ended September 30, 2025, compared to $2.7 million in the same period of 2024[151] - Net cash provided by financing activities was approximately $3.9 million for the six months ended September 30, 2025, an increase from $3.3 million in the same period of 2024[156] - The Company sold assets associated with its Vancouver facility for approximately $2.7 million, eliminating a recurring cash loss of approximately $600 thousand annually[144] Clinical Trials and Development - The company successfully enrolled over 50% of patients in the ongoing Phase 2 CALMA clinical trial for IGC-AD1, targeting agitation in Alzheimer's disease[127] - IGC-AD1 is expected to potentially act within two weeks, significantly faster than traditional medications that can take 6 to 12 weeks[118] - The company is developing MINT-AD, a diagnostic tool aimed at reducing false negatives and delayed diagnoses of Alzheimer's disease[119] Investments - The Company invested approximately $25 thousand in a U.S.-listed digital asset through an ETP during the three-month quarter ended September 30, 2025[145] Working Capital - Working capital decreased by approximately $149 thousand or 23% to $490 thousand as of September 30, 2025, from $639 thousand as of March 31, 2025[148]

Core Insights - IGC Pharma, Inc. has been granted U.S. Patent No. 12,465,589 for methods and compositions aimed at treating CNS disorders, specifically targeting Alzheimer's disease [1] Company Summary - IGC Pharma is a clinical-stage biotechnology company focused on leveraging Artificial Intelligence to develop innovative treatments for Alzheimer's disease [1] - The patent granted by the USPTO signifies a significant milestone for the company in its research and development efforts [1]

Core Viewpoint - IGC Pharma, Inc. is set to host a conference call and webcast to discuss its operational progress for the second quarter and mid-year period ending September 30, 2025 [1] Company Summary - IGC Pharma is a clinical-stage biotechnology company focused on developing innovative treatments for Alzheimer's disease using AI technology [1] - The conference call is scheduled for November 17, 2025, at 11:00 a.m. Eastern Time [1]

Core Insights - IGC Pharma is expanding its AI-powered in-silico drug discovery platform to enhance the development of treatments for Alzheimer's disease [1] Company Developments - The company is integrating additional methodologies such as retrosynthetic analysis, molecular docking, toxicology and genotoxic assessments, and predictive bioactivity modeling [1] - This expansion aims to accelerate the identification and optimization of therapeutic candidates for Alzheimer's disease and related disorders [1]

Core Viewpoint - IGC Pharma, Inc. has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive shift in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant buying or selling activity that affects stock prices [3]. Company Performance and Outlook - The upgrade for IGC Pharma, Inc. reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4]. - Over the past three months, the Zacks Consensus Estimate for IGC Pharma, Inc. has increased by 27.3%, indicating a positive trend in earnings estimates [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - IGC Pharma, Inc.'s upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Group 1: Avino Silver & Gold Mines Ltd. (ASM) - Avino Silver & Gold Mines Ltd. has a Zacks Rank 1 and its current year earnings estimate increased by 18.2% over the last 60 days [1] - The company's shares gained 43.1% over the last three months, outperforming the S&P 500's advance of 5.4% [1] - Avino possesses a Momentum Score of A [1] Group 2: IGC Pharma, Inc. (IGC) - IGC Pharma, Inc. has a Zacks Rank 1 and its current year earnings estimate increased by 27.3% over the last 60 days [2] - The company's shares gained 26.1% over the past six months, compared to the S&P 500's advance of 21.8% [2] - IGC possesses a Momentum Score of B [2] Group 3: Royal Bank of Canada (RY) - Royal Bank of Canada has a Zacks Rank 1 and its current year earnings estimate increased by 5.3% over the last 60 days [3] - The company's shares gained 11.7% over the last three months, in line with the S&P 500's advance of 5.4% [3] - Royal Bank of Canada possesses a Momentum Score of A [3]