IXHL Shares Plunge 17.76% on Record 428.65% Volume Spike as 283rd-Busiest Stock Sparks Market Doubts Amid Promising OSA Trial Data

Incannex Healthcare (IXHL) shares fell 17.76% on July 30, 2025, despite a surge in trading volume to $0.45 billion, a 428.65% increase from the prior day. The stock ranked 283rd in trading activity. The decline followed the release of positive Phase 2 clinical trial results for IHL-42X, a novel oral therapy for obstructive sleep apnea (OSA), which showed statistically significant reductions in apnea-hypopnea index (AHI) by up to 83% in high-dose groups. The drug candidate demonstrated robust efficacy and an excellent safety profile, with no serious adverse events reported.

The RePOSA trial involved 121 patients with moderate to severe OSA, randomized to receive low-dose, high-dose, or placebo IHL-42X. Both dosing groups showed clinically meaningful improvements in sleep metrics, including reduced wake after sleep onset (WASO) and oxygen desaturation index (ODI). Patient-reported outcomes also improved across multiple measures, such as the Epworth Sleepiness Scale and Functional Outcomes of Sleep Questionnaire. CEO Joel Latham emphasized the results as a “critical step forward” in validating IHL-42X’s potential as a best-in-class therapy for OSA, with no current approved oral treatments available.

Incannex is preparing for an End-of-Phase 2 meeting with the FDA to discuss regulatory pathways for Phase 3 trials. The company also plans to finalize its Clinical Study Report and advance commercial discussions. Despite the strong trial data, the stock’s sharp decline suggests market skepticism about near-term execution risks, including capital needs and regulatory hurdles. The drug’s success hinges on maintaining safety in larger trials and securing partnerships for commercialization.

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