Edward Wu

Edward Wu with Ascendiant Capital inquired about the possibility of another interim data analysis for the CALMA trial before its completion, the strategic rationale behind the recent divestiture of a manufacturing facility, and plans for parallel Canadian approval for IGC 81 alongside FDA approval.

Answer

Ram Mukunda, CEO of IGC Pharma, stated that no further interim readouts are expected, with focus now on the final readout. He clarified that the company divested its non-core Vancouver manufacturing facility, not the white label business, to eliminate operating expenses, redirect resources to the CALMA trial, and secure long-term supply rights with a 10% future sale upside. Mukunda also confirmed plans to seek approval for IGC 81 in both the U.S. and Canada.

Edward Wu sought clarification on the pro forma operating expenses and the anticipated distribution pattern for the $10 million investment allocated for the Exua launch throughout the fiscal year.

Answer

CFO Ryan Selhorn clarified that the pro forma annual operating expense is approximately $1,000 a month ongoing. He explained that roughly 50% of the $10 million Exua launch investment is expected to be spent in the December 2025 quarter (Q2 fiscal 2026), with the remaining 50% distributed across Q3 and Q4 fiscal 2026, covering sales representatives and marketing materials.

Edward Wu asked whether macroeconomic challenges, such as slowing GDP, were affecting Daxor's sales cycle for placing new devices. He also inquired about any supply chain disruptions or inflation-related cost issues the company has faced.

Answer

CEO & President Michael Feldschuh responded that in a cost-sensitive economic environment, Daxor's strong value proposition becomes more attractive to hospitals. He explained that the system's ability to shorten patient length-of-stay and serve as a lower-cost alternative to procedures like a right heart cath resonates with economically-focused hospital systems, supported by their partnership with MedAxiom. Regarding operations, he stated that Daxor has avoided significant supply chain problems for components due to its U.S.-based manufacturing but has experienced inflationary pressures related to rising staffing costs.