Business · Singapore Bureau
iX Biopharma clarifies Pentagon ketamine deal unaffected by partner issue
The Singapore-listed biopharmaceutical company has reassured investors that its US$41 million Pentagon contract for ketamine wafers remains intact, despite regulatory queries from the Singapore Exchange regarding a partner's licensing status.
LSN Singapore ·
iX Biopharma has moved to allay investor concerns by clarifying that a licensing matter involving one of its business partners will not impact its lucrative defence contract with the United States Department of Defence. The company's response to the Singapore Exchange came after queries about the partner's regulatory standing, prompting the disclosure.
The company said the US$41 million agreement to supply ketamine-infused wafers to the Pentagon is unaffected by the separate licensing issue. This ketamine wafer programme represents a significant commercial opportunity for the biopharmaceutical firm, which is developing innovative drug delivery solutions for the US military.
Market confidence in the company's position appeared strong following the disclosure. iX Biopharma's shares rose more than 1 per cent on November 4 after the SGX response was released, adding to strong year-to-date performance. The stock has more than tripled in value since the beginning of 2024, reflecting growing investor appetite for the company's pipeline and commercialisation progress.
The clarification underscores the importance of the Pentagon contract to iX Biopharma's near-term revenue prospects and longer-term strategy in the specialised pharmaceutical space.