Incannex Healthcare Limited Sponsored ADR (IXHL) AI Stock Analysis

• Market Cap: $98.67M
• Dividend Yield: N/A
• Average Volume (3M): 6.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.70
• Revenue Growth: -86.05%
• EPS Growth: 24.17%
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.02
• Shares Outstanding: 346,225,500
• 10 Day Avg. Volume: 7,681,889
• 30 Day Avg. Volume: 6,805,628
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 86.42
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 829.71
• Enterprise Value/Gross Profit: 829.71
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.04
• Revenue Forecast (FY): $700.00K

• Rating: 47 Neutral
• Price Target: $0.31 ▼(-21.54% Downside)

The score is held down primarily by weak financial performance (large losses and negative free cash flow) and bearish technicals (price below key moving averages with negative MACD). Offsetting these are positive corporate developments (Fast Track designation and positive clinical progress) and a low-leverage balance sheet, while valuation is difficult to assess due to loss-making results and no dividend data.

Positive Factors

Regulatory momentum (IHL-42X Fast Track)

Fast Track status for IHL-42X institutionalizes more frequent FDA interactions and potential expedited review. That reduces regulatory timeline and oversight risk for the lead OSA program, improving the structural probability of progressing to pivotal/approval stages over the next 2–3 years.

Strengthened cash runway and balance sheet

Ending 2025 with >$70M, a $12.5M private placement, elimination of Series A warrants and a $20M repurchase authorization materially eases near-term financing pressure. This gives multi-year runway to complete later-stage programs without immediate dilution, enabling strategic execution.

Enhanced clinical governance reducing development risk

Adding prominent clinicians to a formal Clinical Advisory Board strengthens trial design, endpoint selection and regulatory engagement. This durable governance improvement lowers execution risk for PSX-001 and supports scientifically rigorous pivotal studies and regulatory interactions.

Negative Factors

Persistent negative operating and free cash flow

Sustained negative operating and free cash flow (about -$12.5M in 2025) means the business continues to consume capital to fund operations and trials. Even with improved burn, the company remains financing-dependent until commercialization or significant cash-generating milestones occur.

Ongoing loss-making with weak margins

Despite a revenue rebound, the income statement shows large net losses and deeply negative margins, producing negative returns on equity. This structural lack of profitability indicates capital is not generating returns and heightens the need for successful trial outcomes or partnerships to justify further investment.

Clinical-stage model with limited commercialization scale

As a clinical-stage biotech with nine employees and no marketed products, Incannex lacks internal commercial infrastructure. Even if clinical/regulatory milestones succeed, the company will likely need partners or to scale operations to capture commercial revenues, delaying durable revenue conversion.

Incannex Healthcare Limited Sponsored ADR Business Overview & Revenue Model

Company Description

Incannex Healthcare Limited engages in the research, development, and sale of medicinal cannabinoid products in Australia. It offers pharmaceutical grade cannabinoid products under the Incannex brand name. The company's products include IHL-42X, which is in Phase II clinical trials for obstructive sleep apnea; IHL-216A for traumatic brain injury; and IHL-675A, a combination of hydroxychloroquine and cannabidiol for the prevention and treatment of inflammatory lung conditions, such as acute respiratory distress syndrome, chronic obstructive pulmonary disease, asthma, and bronchitis, as well as rheumatoid arthritis and inflammatory bowel diseases. It has partnership with The Alfred Hospital and Novotech on IHL-42X clinical program for obstructive sleep apnea; and Monash Trauma Group at the Department of Neuroscience, Monash University to conduct a study on the protective effect of IHL-216A in sports concussion. The company was formerly known as Impression Healthcare Limited and changed its name to Incannex Healthcare Limited in June 2020. Incannex Healthcare Limited was incorporated in 2001 and is based in Sydney, Australia.

How the Company Makes Money

Incannex Healthcare generates revenue through the development and commercialization of its proprietary pharmaceutical products. The company's primary revenue streams include sales of cannabinoid-based medications and psychedelic therapies, which are developed to treat specific medical conditions. In addition to direct sales, Incannex may enter into licensing agreements, strategic partnerships, or joint ventures with other pharmaceutical companies, enabling them to leverage external distribution networks and enhance market reach. Revenue is also derived from potential milestone payments and royalties associated with these partnerships, as well as from government grants or funding related to clinical research. Key factors contributing to the company's earnings include successful clinical trial outcomes, regulatory approvals, and the expansion of its product portfolio.

Incannex Healthcare Limited Sponsored ADR Financial Statement Overview

Summary

Financials are constrained by very large ongoing losses and persistently negative operating/free cash flow despite a rebound in revenue. The balance sheet is a relative positive with low leverage and positive equity, and cash burn improved year over year, but the company is still dependent on funding until profitability improves.

Income Statement

The company is still in a heavy loss-making phase despite a sharp rebound in annual revenue in 2025 (to $0.09M, up meaningfully from the prior year). Profitability remains very weak, with deeply negative operating and net margins and large net losses in both 2024 and 2025. Overall, the income statement shows early/uneven commercialization progress but no sustained path to earnings yet.

Balance Sheet

Leverage looks low, with total debt modest and debt-to-equity remaining very small in 2024–2025, which helps reduce financial risk. Equity is positive and has grown versus 2024, supporting balance-sheet stability. The key weakness is persistent negative returns on equity driven by ongoing losses, indicating the capital base is not yet generating shareholder returns.

Cash Flow

Cash generation is a clear pressure point: operating cash flow and free cash flow are negative across all years shown, including 2025 (about -$12.5M). Cash burn improved versus 2024 (less negative operating and free cash flow), but the business is still consuming cash to operate, implying continued dependence on financing until profitability improves.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	86.00K	86.00K	―	0.00	0.00	1.43M
Gross Profit	86.00K	86.00K	―	0.00	-4.36K	740.54K
EBITDA	-48.09M	-48.09M	-27.70M	-13.55M	-10.16M	-8.57M
Net Income	-45.09M	-46.88M	-27.63M	-48.81M	-10.25M	-8.54M
Balance Sheet
Total Assets	20.45M	20.45M	17.05M	23.78M	26.15M	7.00M
Cash, Cash Equivalents and Short-Term Investments	15.04M	15.04M	5.86M	22.12M	25.80M	6.84M
Total Debt	258.00K	258.00K	373.00K	521.00K	0.00	0.00
Total Liabilities	7.06M	7.06M	5.83M	2.96M	1.39M	566.17K
Stockholders Equity	13.39M	13.39M	11.22M	20.82M	24.76M	6.44M
Cash Flow
Free Cash Flow	-8.91M	-12.52M	-16.12M	-11.06M	-8.84M	-5.18M
Operating Cash Flow	-8.96M	-12.51M	-15.85M	-10.75M	-8.84M	-5.18M
Investing Cash Flow	54.00K	-8.00K	-277.00K	-316.00K	0.00	22.00K
Financing Cash Flow	21.45M	21.40M	0.00	8.18M	28.33M	9.30M

Incannex Healthcare Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IXHL, the sentiment is Negative. The current price of 0.39 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.38, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 24.40 is Positive, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IXHL.

Incannex Healthcare Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIOA	59 Neutral	$841.31M	―	-25.64%	―	―	-1.89%
DERM	57 Neutral	$280.02M	―	-47.05%	―	2.82%	60.26%
ASRT	53 Neutral	$76.04M	-2.51	-24.48%	―	9.21%	58.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CPIX	51 Neutral	$58.93M	-16.90	-13.08%	―	12.21%	69.91%
IXHL	47 Neutral	$98.67M	-0.26	-114.52%	―	-86.05%	24.17%

Incannex Healthcare Limited Sponsored ADR Corporate Events

Incannex Healthcare Expands Advisory Board for Psilocybin Program

On January 29, 2026, Incannex Healthcare Inc. announced the appointment of three prominent clinicians and researchers—Drs. Murray B. Stein, Andrew Cutler and Amir Kalali—to its recently formed Clinical Advisory Board to support the development of PSX-001, its synthetic psilocybin program for generalized anxiety disorder. The expanded board will provide independent guidance on clinical trial design, endpoint selection, regulatory strategy and overall development planning, a move the company positions as critical to managing the increasing complexity of PSX-001’s next clinical and regulatory phases, enhancing scientific rigor, reducing development risk and reinforcing the strategic and shareholder value foundations of this key pipeline asset.

The most recent analyst rating on (IXHL) stock is a Hold with a $0.33 price target. To see the full list of analyst forecasts on Incannex Healthcare Limited Sponsored ADR stock, see the IXHL Stock Forecast page.

Incannex Forms Clinical Advisory Board for Psilocybin Program

On January 22, 2026, Incannex Healthcare announced it has formed a Clinical Advisory Board to guide the ongoing development of PSX-001, its synthetic psilocybin program for generalized anxiety disorder, as it moves into its next clinical and regulatory phase. The board brings together leading experts in psychiatry, neurobiology and psychopharmacology, including C. Neill Epperson, Charles B. Nemeroff and Alan F. Schatzberg, and is expected to strengthen trial design, endpoint selection, regulatory strategy and overall execution for PSX-001, underscoring the company’s push to enhance scientific rigor, manage development risk and support long-term value creation as it advances a key asset in a therapeutic area with significant unmet need.

The most recent analyst rating on (IXHL) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Incannex Healthcare Limited Sponsored ADR stock, see the IXHL Stock Forecast page.

Incannex Healthcare Holds 2025 Annual Stockholders Meeting

Incannex Healthcare Inc. held its 2025 Annual Meeting of Stockholders on January 15, 2026, via a virtual live audio webcast, with a quorum representing approximately 34.38% of the company’s 347.7 million eligible common shares present or represented by proxy. At the meeting, shareholders elected Dr. George Anastassov and Robert Clark as directors to serve until the 2028 Annual Meeting, and ratified the appointment of Grant Thornton Audit Pty Ltd as the company’s independent registered public accounting firm for the fiscal year ending June 30, 2026, decisions that confirm continuity in board leadership and external audit oversight for the coming period.

The most recent analyst rating on (IXHL) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Incannex Healthcare Limited Sponsored ADR stock, see the IXHL Stock Forecast page.

Incannex Wins R&D Award for Sleep Apnea Therapy

On January 15, 2026, Incannex Healthcare Inc. announced it had won the Research and Development Award in the Respiratory Disorders category of the 2025 Clinical Trials Arena Excellence Awards, recognizing its work on IHL-42X, an oral fixed-dose combination therapy in development for adults with moderate-to-severe obstructive sleep apnea. The award highlights industry-wide recognition of Incannex’s science-driven approach and late-stage development strategy for IHL-42X, which is supported by a robust Phase 2 program showing favorable safety and tolerability and aims to provide a non-invasive pharmacologic alternative for patients who cannot tolerate or adhere to device-based therapies, reinforcing the company’s broader positioning as an innovator in combination therapies for chronic, underserved diseases.

The most recent analyst rating on (IXHL) stock is a Hold with a $0.37 price target. To see the full list of analyst forecasts on Incannex Healthcare Limited Sponsored ADR stock, see the IXHL Stock Forecast page.

Incannex Highlights Pivotal 2025 Clinical and Financial Milestones

On January 14, 2026, Incannex Healthcare reported that 2025 was a “defining” year, marked by positive Phase 2 clinical readouts in two central nervous system programs and significant strengthening of its balance sheet. The company achieved statistically significant efficacy and patient-reported benefits for its obstructive sleep apnea candidate IHL-42X in the RePOSA Phase 2 trial and secured FDA Fast Track designation for the therapy, underscoring both the unmet need in OSA and the perceived potential of its oral combination approach. Incannex also delivered positive Phase 2 results for its psilocybin-assisted therapy PSX-001 in generalized anxiety disorder, showing clinically meaningful improvement on the primary HAM-A endpoint and supportive safety and tolerability data, and it established an Obstructive Sleep Apnea Clinical Advisory Board to guide later-stage development. Financially, the company ended 2025 with more than $70 million in cash, raised $12.5 million via private placement, eliminated all outstanding Series A warrants, and authorized a $20 million share repurchase program, giving it an operating runway well into 2027 and easing near-term financing pressure as it advances its pipeline in 2026.

The most recent analyst rating on (IXHL) stock is a Hold with a $0.38 price target. To see the full list of analyst forecasts on Incannex Healthcare Limited Sponsored ADR stock, see the IXHL Stock Forecast page.

Incannex Healthcare Adjourns 2025 Annual Stockholder Meeting

Incannex Healthcare Inc. reported that its 2025 annual meeting of stockholders, held on December 18, 2025, could not proceed due to the absence of a quorum, which was primarily attributed to its transfer agent mistakenly classifying the auditor ratification proposal as non-routine and thereby limiting discretionary broker voting. As a result, the company adjourned the meeting to January 15, 2026, to be held virtually, and is working with its transfer agent and other parties to have the auditor ratification proposal reclassified as routine, while continuing to solicit additional proxies, with previously submitted proxies remaining valid unless revoked.

Incannex Healthcare Gains FDA Fast Track for IHL-42X

On December 3, 2025, Incannex Healthcare Inc. announced that it received Fast Track designation from the U.S. Food and Drug Administration for its IHL-42X product, aimed at treating obstructive sleep apnea. This designation, supported by successful Phase 2 trial results, allows for more frequent FDA interactions and potential expedited review processes, highlighting the significance of IHL-42X in addressing unmet medical needs in sleep apnea treatment.

Incannex Healthcare Highlights Clinical Progress in Shareholder Update

On October 30, 2025, Incannex Healthcare Inc. provided a shareholder update highlighting significant clinical progress and strategic focus for the end of 2025. The company reported successful Phase 2 trial results for IHL-42X and PSX-001, demonstrating substantial efficacy and safety in treating obstructive sleep apnea and generalized anxiety disorder, respectively. Incannex emphasized its strong financial position, maintaining capital discipline without further equity dilution, and outlined priorities for regulatory engagement and strategic partnerships to advance its clinical programs. These developments position Incannex for sustained growth and potential transformation in the treatment landscape for these conditions.