Stonegate Updates Coverage on Incannex Healthcare Inc. (IXHL) 3Q 2025 - Update

Core Insights - Incannex Healthcare Inc. (NASDAQ: IXHL) has made significant progress with its IHL-42X asset, achieving positive topline results from the Phase 2 study, with maximum reductions in Apnoea-Hypopnoea Index (AHI) of up to 83% for the high-dose group and 79% for the low-dose group [1][7] - The treatment was well tolerated, with no serious adverse events reported, and 57.6% of participants noted a perceived improvement in their obstructive sleep apnea (OSA) [1][7] - IXHL has eliminated approximately $347 million in potentially dilutive Series A Warrants through around $24.7 million in at-the-market (ATM) proceeds, enhancing financial flexibility for advancing IHL-42X towards commercialization [7] Clinical and Regulatory Developments - The Phase 2 trial of IHL-42X demonstrated statistically significant reductions in AHI and broad improvements in patient-reported outcomes, indicating both efficacy and safety [7] - Beyond IHL-42X, IXHL is advancing other assets, including PSX-001 for generalized anxiety disorder (GAD) with IND clearance in the U.S. and U.K., and IHL-675A, which is in Phase 2 for rheumatoid arthritis, with data expected in the second half of 2025 [7]