CannPal Shares Climb After Announcing Licensing Agreement With CSIRO

After an evaluation lasting 18 months, CannPal has secured a licensing agreement with the CSIRO to commercialize its microencapsulation of hemp-derived oils.

CannPal Animal Therapeutics Limited (ASX:CP1) has been granted exclusive global rights to commercialize patented MicroMAX® microencapsulation technology by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for use in the field of Animal Therapeutics.

MicroMAX® is CSIRO's patented microencapsulation technology platform designed to encapsulate microscopic droplets of oil in a special food grade material, to protect bioactive ingredients from oxidation and help deliver them to the gastrointestinal (GI) tract.

Microencapsulation is a process widely used in food and drug manufacturing that protects the integrity of functional ingredients and helps maintain the nutritional value, shelf-life and flavour of the finished product, while enhancing the delivery of the active compounds.

CannPal has been evaluating the Technology with CSRIO to develop new and innovative product formats using less regulated compounds from the hemp plant, as part of the Company's near-term revenue generation strategy to support its ongoing pharmaceutical research and development.

The 18-month evaluation demonstrated that MicroMAX® can successfully encapsulate CannPals oil formulations with superior protection capabilities and substantial improvement in oxidative stability, enabling CannPal to add hemp and cannabis oils to a wider range of innovative new product applications for companion animals.

The licence provides CannPal with the exclusive global rights to apply the Technology to proprietary oil formulations for the development and commercialisation of novel animal health products, using plant-derived compounds from hemp and cannabis.

The Company is also pleased to announce that it has confirmed significant anti-inflammatory activity in the hemp-derived oil formulation used during the evaluation of MicroMAX®.

Pre-clinical data from an in-vitro canine inflammation model confirmed the oil formulation significantly reduced the expression of pro-inflammatory biomarkers when compared to control (P value <0.0001). The data has been used to file a new patent application, strengthening the Company's growing IP portfolio.

Additionally, the formulation contains compounds from the hemp plant which are already approved for use in consumer products, providing CannPal with a path to market for complementary evidence-based product formats without the need for regulatory approval.

The Company will commence a small-scale commercial trial to market test a new product format combining MicroMAX® with the anti-inflammatory formulation, in a select consumer group in Q1 2020, to complement CannPals regulatory focused lead products which remain the Company's core priority.

After 18 months of due diligence, I'm delighted to announce that we've been granted the exclusive rights to CSIRO's patented MicroMAX® technology platform for use in the animal health market.

CannPal Managing Director, Layton Mills

Mills went on to say that "it's a highly effective technology with unmatched stability and protection capabilities, enabling us to deliver hemp and cannabis compounds to pets in a new and innovative way."

"Additionally, it's exciting to see significant anti-inflammatory activity in the hemp-derived formulation used during the evaluation. This gives us confidence to explore the ways in which we can commercialise complementary products for the animal health market with high quality evidence- based formulations using some of the less regulated compounds in the hemp plant, to support CannPals ongoing pharmaceutical development which remains our core focus," Mills concluded.

CSIRO project leader, Dr Netsanet Shiferaw Terefe stated that "with our experts in microencapsulation and bioactive delivery, and our patented Micromax® technology, we were able to transform CannPals therapeutic oil formulation into a format suitable for use as a bioactive ingredient in pet supplements. We're pleased that we were able to help CannPal on their commercialisation journey."

Disclaimer: Past performance is not an indicator of future performance.

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Louis O'Neill
Louis O'Neill

Louis is a writer based in Sydney with a focus on social and political issues. Having interviewed local politicians and entrepreneurs, Louis now focuses on cannabis culture, legislation & reform.

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