This ASX-listed cannabis biotech could be sitting on a billion-dollar formula.
Following on from decades of propaganda from the War on Drugs, the cannabis plant has largely been shrouded in mystery. Very little research could be done due to the plant's illegality, and as a result, the only information available was the propaganda like Reefer Madness.
Fast forward to today, as the Green Rush occurs in full force, and countries and states are moving at breakneck speed to legalize the plant for both recreational and medicinal purposes. The only issue? There still remains very little information surrounding cannabis – legalization has outpaced information.
This is why we're very focused on cannabis biotech companies, who focus on generating real-world clinical results in order to treat persistent health issues that people face daily.
One such cannabis biotech is Medlab Clinical (ASX: MDC)
Operating primarily out of Australia, with organic chemistry set up in Southern California and additional offices in Malta and London, Medlab Clinical is an ASX-listed cannabis biotech company with a focus on providing therapeutic pathways for chronic diseases.
The company's flagship drug, and the reason we're so excited about this stock, is NanaBis. NanaBis is the company's cannabis-based pain management product, comprised of a proprietary 1:1 blend of highly purified cannabidiol (CBD) and tetrahydrocannabinol (THC) molecules.
NanaBis was developed as a pain management alternative to traditional opioids—particularly for patients suffering from advanced types of cancer and chronic pain.
Most recently, Medlab has announced that they will be entering into a commercial agreement with Tasmanian Alkaloids, also known as TASALK, to transfer production Medlab's patented cannabinoid medicine NanaBis to Tasmanian Alkaloids.
The recently announced agreement will allow Medlab to ramp up production and manufacturing of Nanabis, as well as increasing product quality and compliance for TGA, FDA and EMA.
Why are we so excited about NanaBis?
First and foremost, NanaBis sits at the intersection of rising rates of chronic pain and cancer, as well as a worsening global opioid epidemic.
According to a report published by P&S Intelligence, the chronic pain treatment market is expected to reach $105.9 billion by 2024. Combine this with the fact that opioid deaths lead to 47,600 deaths in 2017 – over 130 deaths a day – and you can start to see the benefits that NanaBis may have.
Patients suffering from cancer or chronic pain are often treated with opioids, which are dangerous in and of themselves. Any company that can validate a safe alternative to opioids that effectively improves markers for such types of pain is sitting on a treasure chest to the tune of tens, if not hundreds of billions.
Medlab is entirely cognizant of the enormous potential that this market holds, which is why the company is taking the necessary steps to become an approved global drug for Cancer pain.
In order to pursue this end-goal of NanaBis's validation and approval and in addition to Medlab's recent announcement that the company would be entering into a partnership with TASALK to produce NanaBis, the company has been moving full-steam-ahead on its flagship drug trials.
NanaBis is currently being supplied under the Australian Government's Special Access Scheme (SAS) and is also part of an ongoing TGA approved Observational Study, which aims to recruit 2,000 patients.
The Phase 2 clinical trials for NanaBis were recently completed at the Oncology Department of the Royal North Shore Hospital, Sydney, led by Professor Stephen Clarke, with results slated to arrive in February 2020.
The company has already stated that the clinical trials have yielded "highly significant" preliminary data and that all patients involved in the study have reported a noticeable reduction in pain.
Furthermore, the data yielded from the RNSH trials will also be used to develop Phase 3 trial protocols which will be used across both Australia and in the US, as Medlab intends to seek out FDA approval in the United States later this year.
NanaBis is undergoing drug development with the specific end goal of being approved by the TGA, FDA and EMA.
Medlab's billion-dollar delivery platform
Medlab's flagship NanaBis formulation also utilizes the company's patented sub-micron delivery platform, NanoCelle, in the form of a buccal spray that is applied to the inner cheek, which has proven to be highly effective particle delivery method for cannabis-based medicines. Not only this, but the pharmaceutical delivery platform market which NanoCelle sits within was worth $1.2 billion in 2018 and is expected to increase at a CAGR of 6.4%.
Within the next month we will find out the results of Medlab's phase 2 trials for NanaBis from the Royal North Shore Hospital, and should the trial reveal promising results, investors can expect the stock to spike promptly after. This will lay the groundwork for MDC to begin its phase 3 trials in both Australia and the US.
Not only this, but positive results will bring Medlab one step closer towards a clinically-validated, FDA approved cannabis-based drug for pain relief, which could generate astronomical profits for the company.
Such results will not only put Medlab on the map but will also be revolutionary for the growing medicinal cannabis industry at large, as it will directly cut into the opioid industry while generating massive global enthusiasm.
If you want to learn more about Medlab Clinical, visit their company HQ here.
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