Animal health company CannPal Animal Therapeutics Limited (ASX:CP1) released its Quarterly Cash Flow Report for the period ending 30 June 2019, providing updates for its research into developing therapeutic pet products. CannPal seeks to study and produce products containing cannabis for the treatment of animals.
For the quarter, the company had a cash balance of $3.3 million and operating cash outflows reaching $836,000, with $722,000 dedicated to the research and development of the Company's cannabinoid product pipeline.
CannPal achieved several milestones this quarter, such as the CPAT-01 Phase 2A and B pilot studies and the announcement of the company's partnership with Jaychem Industries to develop DermaCann – a regulatory approved novel oral formulation to target canine skin health set to release in 2019.
The Company finished its analysis of blood samples during Phase 1B study for CPAT-01, which seeks to create an inflammatory control drug for dogs. Phase 1B was a follow up of Phase 1A, a trial involving 11 canines, 8 of which were given treatment while 3 were given a placebo. The test sought to identify the gene expressions of the CPAT-01 formula in the canine body.
Phase 1B involved 48 beagles and foxhounds of both sexes across various ages who were evaluated after receiving different concentrations of the target CPAT-01 formulation. The analysis in Phase 1B revealed new genes that were drastically influenced through treatment.
The results from the two trials will be used to file the Company's INAD (Investigational New Animal Drug) application with the FDA which is expected to be filed in August 2019.
Commencement of 2A & DermaCann
Cannpal announced it will be conducting an 8 week randomised, double-blind, placebo-controlled study with an expected 60 dogs to test CPAT-01's ability to alleviate osteoarthritis. Canine assessments have already begun in NSW.
The company is also expecting to commence the field safety and efficacy study for DermaCann, an oral liquid nutraceutical in development for skin health in dogs.
The study will involve 30 client-owned animals with dermatological issues such as atopic dermatitis or allergic dermatitis, and once completed the Company plans to apply for Complimentary Animal Health Product (CAHP) approval. This approval would permit veterinarians to prescribe DermaCann to pet owners across Australia, which would make it the first prescription animal medicine in the Asia-Pacific region to contain cannabidiol (CBD).
The Company has also been researching CSlRO-patented technologies to potentially enhance the delivery of hemp and cannabis-derived compounds among animals. CannPal entered into the agreement in 2018 thanks to CSIRO's Kick-Start program, which seeks to provide innovative Australian start-ups with financial aid and the access to CSIRO's research expertise and facilities.
The two companies will collaborate to research the efficacy of CannPal's cannabis-derived products, and they have already had a successful pilot nutraceutical run with Australian pet food manufacturer, Next Generation Pet Foods.
CannPal's Founder and Managing Director, Layton Mills also stated in the report:
"I'm extremely pleased with the key milestones achieved during the quarter, including the commencement of our Phase 2A study for CPAT-01, and our readiness to commence the field safety and efficacy study for DermaCann. Both of these trials are globally significant milestones, as they represent regulatory progress that is yet to be matched by an animal health Company developing cannabinoid-derived products for pets."
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