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FY26 results were below expectations. Revenue/Net Loss were 72%/170% of our FY26e forecast. The transfer of a machine from Australia to the US resulted in lower medicinal cannabis sales (~S$3mn). Additional expenses, such as professional fees (~S$1mn) and the performance share plan (~S$2mn), were not modelled.
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The US$40.9mn Wafermine Programme (funding the Phase 3 and EUA development of Wafermine) from the US Department of Defense has started, with S$1.2mn recognised as development services. We believe the EUA submission and preparation for the Phase 3 study for Wafermine are advancing according to schedule.
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We are incorporating higher upfront costs from the US wholesale compounding pharmacy operations and an increase in performance shares. The expected tripling of revenue in FY27e will be driven by compounding pharmacy (with partner Orion Speciality), Wafermine sales, and development services. Our DCF SOTP target price of S$1.00 and BUY recommendation are unchanged. The major milestones for iX Biopharma will be the Wafermine EUA submission (4Q26), EUA approval (1Q27), EUA production (2Q27) and Phase 3 trials approval (2Q27). We also expect the US production line to commence in 1Q27, with another three in 2Q27.
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