IntelGenx Reports Third Quarter 2017 Financial Results

November 09, 2017

SAINT-LAURENT, QUEBEC -- (Marketwired) -- 11/09/17 -- IntelGenx Technologies Corp. (TSX VENTURE:IGX)(OTCQX:IGXT) (the "Company" or "IntelGenx") today reported financial results for the third quarter ended September 30, 2017. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.

2017 Third Quarter Financial Highlights:

  • Revenue was $1.3 million, compared to $1.8 million in the same period last year
  • Adjusted EBITDA was ($340,000), compared to adjusted EBITDA of $311,000 in the same period last year
  • Raised gross proceeds of CDN$7.6 million (US$6.1 million) via a prospectus offering of convertible unsecured subordinated debentures
  • Cash and short-term investments totalled $6.9 million as at September 30, 2017

Recent Developments:

  • Announced that the Company, together with Redhill Biopharma Ltd., resubmitted the 505(b)(2) New Drug Application to the U.S. Food and Drug Administration for RIZAPORT® 10 mg
  • Announced that the U.S. District Court for the District of Delaware determined that the process used to manufacture IntelGenx' and Par Pharmaceutical Inc.'s buprenorphine/naloxone sublingual film product for the treatment of opiate addiction does not infringe MonoSol Rx U.S. Patent No. 8,900,497
  • Announced that in a separate decision requesting the judge to reconsider its June 28, 2016 decision finding that IntelGenx' and Par's product would infringe the asserted claims of U.S. Patent No. 8,603,514, the U.S. District Court for the District of Delaware denied IntelGenx' and Par's motion to reopen the case on procedural grounds. The decision on the motion to reopen the case allows IntelGenx' and Par's previously filed appeal to proceed forward

"With the completion of convertible debenture offering during the third quarter, we secured the necessary financial resources to continue executing our growth strategy," commented Dr. Horst G. Zerbe, President and CEO of IntelGenx. "Subsequent to quarter-end, we took importantsteps towards bringing our proprietary thin-film product for the treatment of acute migraines to the U.S. market through the resubmission of the RIZAPORT® 505(b)(2) NDA. The advancement of our product pipeline toward commercialization will continue to be a key priority throughout the remainder of 2017 and in 2018."

Financial Results:

Total revenues for the three-month period ended September 30, 2017 amounted to $1.3 million, compared to $1.8 million for the three-month period ended September 30, 2016. The decrease for the three-month period ended September 30, 2017 compared to the last year's corresponding period is mainly attributable to a decrease in licenses and other revenues.

Operating costs and expenses were $1.8 million for the third quarter ended September 30, 2017, versus $1.7 million for the corresponding quarter in 2016. The increase for the three-month period ended September 30, 2017 is mainly attributable to an increase in Research and Development expenses of $190,000, offset partially by a $109,000 decrease in Selling, General and Administrative expenses.

For the third quarter ended September 30, 2017, the Company had an operating loss of $569,000, compared to operating income of $88,000 for the comparable period of 2016.

Net comprehensive loss was $586,000 or $0.01 on a basic and diluted per share basis, for the period ended September 30, 2017, compared to net comprehensive income of $62,000, or $0.00 on a basic and diluted per share basis, for the comparable period of 2016.

As of September 30, 2017, the Company's cash and short-term investments totalled $6.9 million.

Conference Call Details:

IntelGenx will host a conference call to discuss its third quarter 2017 financial results today, November 9, 2017, at 4:30 p.m. ET. The dial-in number for the conference call is (833) 231-8269. The call will be webcast live and archived for twelve months at www.intelgenx.com.

About IntelGenx:

Established in 2003, IntelGenx is a leading oral drug delivery company primarily focused on the development and manufacturing of innovative pharmaceutical oral films based on its proprietary VersaFilm™ technology platform.

IntelGenx' highly skilled team provides comprehensive pharmaceuticals services to pharmaceutical partners, including R&D, analytical method development, clinical monitoring, IP and regulatory services. IntelGenx' state-of-the-art manufacturing facility, established for the VersaFilm™ technology platform, supports lab-scale to pilot and commercial-scale production, offering full service capabilities to its clients. More information about the company can be found at www.intelgenx.com.

Forward-Looking Statements:

This document may contain forward-looking information about IntelGenx' operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about IntelGenx' plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. All forward looking statements are expressly qualified in their entirety by this cautionary statement. Because these forward-looking statements are subject to a number of risks and uncertainties, IntelGenx' actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in IntelGenx' annual report on Form 10-K, filed with the United States Securities and Exchange Commission and available at www.sec.gov, and also filed with Canadian securities regulatory authorities and www.sedar.com. IntelGenx assumes no obligation to update any such forward-looking statements.

Each of the TSX Venture Exchange and OTCQX has neither approved nor disapproved the contents of this press release.

Source: IntelGenx Technologies Corp.

IntelGenx Technologies Corp.
Stephen Kilmer
Investor Relations
(514) 331-7440 ext 232
stephen@intelgenx.com
IntelGenx Technologies Corp.
Andre Godin, CPA, CA
Executive Vice-President and CFO
(514) 331-7440 ext 203
andre@intelgenx.com
www.intelgenx.com

Source: IntelGenx Technologies Corp.