CannPal Animal Therapeutics updates investors on its fourth quarter 2019 business operations, including $650,000 the company received from the ATO.
CannPal Animal Therapeutics Limited (ASX:CP1) released its December 2019 Quarter results today, beginning with the company's cash runway.
The company had $2.42 million in cash and $366,000 in operating outflows for the quarter. Additionally, the company received $654,240 from the Australian Tax Office (ATO) under the Federal Government's Research and Development Tax Incentive Scheme.
CPAT-01 is CannPal's leading drug candidate which is being developed to treat the pain and inflammation which accompanies osteoarthritis in canines.
So far, 49 dogs have been screened for the Phase 2A pilot dose determination study which began in August 2019. 36 dogs have passed screening and commenced their treatment. The dropout rate for the group sits at 14%, which is less than the company predicted.
The recruitment process was greatly aided by a radio marketing campaign with radio channels 2GB and Nova FM, which produced an additional 50 potential cases.
The trial, which spans 3 months, evaluates high dose ranges of the CPAT-01 in order to assure a broad safety profile, and has already given CannPal enough pilot data that the company is requesting to open an Investigational New Animal Drug file (INAD) with the Food and Drug Administation, Centre for Veterinary Medicine and the Office of New Animal Drug Evaluation. This suggests that CannPal is confident in their drug candidate and wants to begin shipping its material to the United States for further studies.
CannPal will be meeting with the FDA soon to discuss further developments.
In December 2019, 30 dogs began dosing DermaCann, a drug designed to treat Atopic Dermatitis in canines, for a field efficacy study that lasts 8 weeks.
The company also announced within its report that it had completed finalising its protocol for a Target Animal Safety study for DermaCann, which will be commencing in the United States in the second quarter of 2020. This study will last 3 months and is expected to have 16 dogs enrolled.
Lastly, with regards to DermaCann, the company will be drafting an authorisation dossier for submission with the APVMA (Australia, Pesticides and Veterinary Medicines Authority) and the MPI (Ministry for Primary Industries) to push for approval of DermaCann to become an authorised medicine to be prescribed by veterinarians.
CSIRO Licencing Agreement
As announced recently, CannPal gained exclusive rights to commercialise MicroMAX microencapsulation technology by the CSIRO to be used in animal therapeutics. The technology encapsulates drops of oil in a food-grade material, which protects the active ingredients until they're delivered to the targeted regions of the gastrointestinal tract.
The company is considering utilizing the technology on its nutraceutical products which are primarily derived from hemp, as there are fewer regulations that may allow for short-term revenue generation.
Our team has continued to deliver progress across all of our major research programs.CannPal Managing Director, Layton Mills
Mr. Mills went on to say that CannPal "remain[s] well capitalised and focused on the completion of our pilot Phase 2 research program for CPAT-01 and the development of DermaCann for potential market authorisation as a veterinary medicine in New Zealand and Australia. We believe 2020 will be a transformational year for CannPal as we look to reach key milestones and continue to advance to commercialisation opportunities available to the company as a result of our high quality and focused research."
This could be one of the best investing opportunities of 2020
Legislative changes are blowing through the US, and with it, an ever-increasing number of states legalising cannabis for recreational use.
With the success seen in Illinois, which legalised for adult-use on January 1 and saw products moving off the shelf at an unprecedented rate, this company is primed to take advantage of the booming US recreational market.
They have secured partnerships with the biggest cannabis companies in the US, and their portfolio is second to none.
And with the sector-wide pullback of 2019, this company is now at a bargain-basement price.
& Keep Up to Date
Get the latest pot stock recommendations, cannabis news
and industry updates straight to your inbox!