India Globalization Capital Inc. (IGC) shares rallied 52.03% in after-hours on Wednesday, June 23, 2021, and closed the day at $2.25 per share. in the morning session on Wednesday, IGC’s stock remained unchanged and closed the session at $1.48 per share. IGC shares have risen 153.95% over the last 12 months, and they have moved down 6.92% in the past week. Over the past three months, the stock has lost 13.95%, while over the past six months, it has declined 16.38%.
Let’s try to find out the reason behind its surge in the after-hours on Wednesday.
Completion of phase 1 clinical trial of IGC-AD1on Alzheimer’s Patients
On June 23, 2021, India Globalization Capital, Inc completed Cohort 3 of its Phase 1 clinical trial on IGC’s tetrahydrocannabinol (THC)-based investigational new drug, IGC-AD1, intended to ease the symptoms of individuals suffering from Alzheimer’s disease.
FDA provided the approval for Phase 1 trial of IGC-AD1, on Alzheimer’s patients on July 30, 2020. On June 8, 2021, IGC completed Cohort 2 of its Phase 1 clinical trial of IGC-AD1.
The Data and Safety Monitoring Committee of IGC’s clinical trial will review the data from Cohort 3, and IGC will report its findings from all three Cohorts to the FDA.
Recent financial results announcement
On June 14, 2021, India Globalization Capital, Inc. released its financial results for the Fiscal Year Ended March 31, 2021.
FY 2021 financial highlights
- India Globalization Capital reported revenue of approximately $898 thousand for FY 2021 compared to $4.1 million for Fiscal 2020.
- Selling, general and administrative expenses were approximately 7.9 million in FY 2021 compared to approximately $6 million for Fiscal 2020.
- Research and Development expenses were approximately $929 thousand for FY 2021 compared to approximately $1 million for Fiscal 2020.
- The company suffered a net loss of approximately $8.8 million or $0.21 per share in FY 2021 compared to approximately $7.3 million or $0.19 per share for Fiscal 2020.
- The company had total assets valued at $23.51 million on March 31, 2021, compared to $17.76 million on March 31, 2020.
Q3 2021 financial results
On February 12, 2021, India Globalization Capital, Inc released its financial results for the quarter ended December 31, 2020, which is the third quarter of its 2021 fiscal year.
The company earned a revenue of $108 thousand for Q3 2021 compared to $573 thousand for Q3 2020.
Selling, general and administrative expenses were $2,186 thousand for the three months ended December 31, 2020, compared to $1,413 thousand in Q3 2020.
The company suffered a net comprehensive loss of approximately $2,283 thousand or $0.06 per share in Q3 2021 compared to approximately $1,646 thousand or $0.04 per share for the September 2019 quarter.
The IGC stock skyrocketed after the company announced the completion of Cohort 3 of its Phase 1 clinical trial which is positive news and we can expect that IGC stock can further go up in the coming days.