IGC Pharma's research and development efforts are concentrated on the treatment of Alzheimer's disease with three compounds at various stages of development including IGC-AD1
IGC Pharma secures $12m to boost Alzheimer’s disease. (Credit: Robina Weermeijer on Unsplash)
Pharmaceutical company IGC Pharma has secured a $12m revolving line of credit from the Hong Kong Branch of O-Bank to support its working capital needs primarily related to research on Alzheimer’s disease.
IGC Pharma’s research and development efforts are focused on the treatment of Alzheimer’s disease with three compounds at various stages of development.
It has two investigational drug assets targeting Alzheimer’s disease, IGC-AD1 and TGR-63.
IGC-AD1, a low-dose tetrahydrocannabinol (THC) based formulation, is presently undergoing Phase 2 clinical studies as a possible therapy for agitation associated with Alzheimer’s-related dementia.
Of the targeted 146 patients for the Phase 2 trial, 16 individuals have already completed the trial.
The pharmaceutical firm has signed contracts with eight trial sites, and discussions are currently taking place with another seven locations.
To complete the trial in the first quarter of the calendar year 2024, the company anticipates that 13–15 trial sites will be able to recruit 15–20 patients every month.
IGC Pharma CEO Ram Mukunda said: “We are thankful to O-Bank for their support, and grateful for the continued support from Bradbury. Together, with our dedicated investors and partners, we are working towards our goal of developing innovative therapies for Alzheimer’s disease.
“With their support, we are focused on advancing IGC-AD1 and bringing hope and relief to millions of patients and families worldwide.”
According to the terms of the line of credit, IGC can draw up to $1m within a 30-day period on an interest rate of 1% plus the rate paid on certificates of deposits.
The facility has a 12-month initial term with the possibility of a 12-month extension with Bank approval.
IGC paid the Bank $120,000 as a charge for supplying the 12-month facility. In order to back the line of credit, Bradbury Asset Management has collateralised cash assets.
Bradbury is a financial institution with its headquarters in Hong Kong and roughly $2bn in assets under management.
This comes after four investment funds run by Bradbury recently disclosed investing $3m in IGC through a private issue of unregistered shares without warrants or other derivatives.