IntelGenx Technologies Corp. (PNK:IGXT) Q3 2023 Earnings Call Transcript

Andre Godin: I can answer that if you want. I mean, Gensco is also looking at China. And I mean, we also have obviously Exeltis distributing in Spain. Hopefully, the sales should pick up based on what Dwight just mentioned and they’re looking at…

Hugh Kelly: Congratulations on getting that resolve, Andre, congratulations with Exeltis getting that shelving issue, resupply issue resolved. So regarding that one, is there discussions on the way? What countries in the EU would be next in line or they’re just going to wait to see how Spain goes?

Andre Godin: I think in the first place they will wait to see how Spain goes. But there has been discussion for EU countries in the past with exeltis, so we’ll see how that goes. But we also have discussion with other countries. But this is really preliminary in terms of discussion. But obviously, we are fully aware how this RIZAFILM or RIZAPORT can be very successful. It’s the first migraine film in the U.S. and it will be in other countries. So I think we’re very excited about this launch and we’re definitely ongoing discussion for other countries.

Dwight Gorham: Yes, it’s Dwight back online. I’m sorry, I got cut off. We definitely as late as two weeks ago were speaking with exeltis about monitoring progress in Spain and looking to move that into other large markets in the EU, directly adjacent to Spain.

Hugh Kelly: Okay, that’s good. Last thing with the FDA and the pediatric RIZAFILM, is that still – is that ways off to be developed or do you see that in first half of next year, the end of the year or for the one of the year.

Andre Godin: That is in development and we have studies to do. So it’s not likely to be part of the sales line in 2024. It’s more likely a 25 line item.

Hugh Kelly: Okay. And then the new products that were introduced with Tilray, I know from a prior call talking to Tommy, there was a lot of development effort for cannabis, cannabis THC and whatever other products are. Do you see those – last call, there was some less excitement of the cannabis market. Do you think those will have an attractive peel in the marketplace with Tilray?

Andre Godin: I think that’s an open question, Hugh. I mean, we all know that the cannabis market has been problematic for most. This is medical cannabis. So the limitations will be a little bit more – will be a little tighter and I think it’s a wait and see. The good news is we’re making commercial product. The commercial product is going to market, so there’s some return on that investment. And they are very clear that they expect that they’ll make some traction with this. Although, I would say cautiously optimistic would be the expression I would use.

Hugh Kelly: And I was just wondering with their prior arrangement with rapid dose, is that still active as a competitor? Or is it basically aligned with IntelGenx? I don’t know if you’re allowed to say that, but I track these…

Andre Godin: Hugh, they did drop rapid though, they’re dealing with us now.

Hugh Kelly: Okay, thank you, Andre. No, thank you for that. I didn’t get on a little late there. Dwight, on the CDMO, this is the contract that was revealed before. Is it close to being finalized? I know you got the binding term sheet and some other issues to work out resolved to both companies satisfactory expectations. Would that be done in Q4 or that go into 2024?

Dwight Gorham: That’ll likely be early in 2024, Hugh. It’s not stopped us from progressing. The machine parts, which are the critical path item are on order, and they’re subject to the vagrancies of some of the subcontractors, but are expected to be in January. And we will then start doing line trials, et cetera, to get the line commissioned and run stability lots. So the definitive agreement I suspect will be completed sometime in Q1 2024.

Hugh Kelly: Okay, that’s a good answer, Dwight. And I was going to ask you about on the other products like that, DisinteQ or transdermal, before I bring up VetaFilm, does any of those – have any potential interest in the marketplace with new partners?

Dwight Gorham: Our focus and our conversations have all been on the film products, not transdermal.

Hugh Kelly: Okay. And then would you say, you have potentially one partner for VetaFilm is there any behind that? The first company that you may be able to bring to conclusion with a contract or is it just one for the present time for VetaFilm?

Dwight Gorham: It’s one. But there are other conversations on other pharmaceutical ingredients that might be good targets for conversion from the current dosing regime to VetaFilm.

Hugh Kelly: All right, one last question.

Dwight Gorham: Those are early conversations.

Hugh Kelly: Yes. Okay. No, I accept that. The discussions prior calls we had with the status of the power product, maybe the partner – being the power partnership being replaced, is that still on hold with the Endo bankruptcy. Or is that a potential future product that could be news on?

Dwight Gorham: I would say, the latter potential product that you may get news on. There’s discussions, but they’re in early stages.

Hugh Kelly: Okay, thank you. I’ll go back into the queue. Thank you, Dwight and Andre.

Dwight Gorham: Yes. My apologies for getting cut off, Hugh.

Operator: Thank you. The next question is coming from Abraham Shapiro [ph]. Abraham is a private investor.

Unidentified Analyst: Good afternoon, everybody, Andre, Horst, Dwight. I got the Tilray order. I didn’t hear any revenue numbers. What kind of revenue we expecting? Is IntelGenx expecting from that initial order?

Dwight Gorham: Okay, go ahead.

Andre Godin: The initial order is for $400,000.

Unidentified Analyst: $400,000. All right.

Andre Godin: That’s just an initial order.

Unidentified Analyst: That’s what kind of revenue. Okay. Being that it’s a medical product, is it allowed to export to the United States?