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Medicinal cannabis, also known as medicinal marijuana, has gone from a criminalised drug to a multibillion-dollar global boom in a short period. Cannabis is used in more than 20 countries, either for improving the symptoms of disease or treating various medical conditions.
Marijuana stocks in Australia are on the edge of a green rush. As the countries liberalise legislation for medical as well as recreational use of marijuana, it is predicted that the industry would develop sharply in the future. According to some research reports, the global cannabis market stands at around $8 billion, and it is anticipated to hit nearly $22 billion by 2022.
Also Read: What's happening in the Cannabis space?
The cannabis industry is one of the disputed sectors at a worldwide level, and significant progress has been seen in this industry. Countries are focusing on developing useful regulations and guidelines to ease the access to medicinal cannabis. In Australia, Medicinal cannabis products must be developed under a Good Manufacturing Practice (GMP) license. The Australian Government, through the Office of Drug Control and the Therapeutic Goods Administration (TGA), regulates medicinal cannabis industry.
To know more, Do read: A Deep Dive Into The Australian Cannabis Market
What does the COVID-19, the disease caused by this new coronavirus have to do with pot stocks?
The coronavirus outbreak could impact some of the companies that are into the selling of vaping products developed in China. There is a possibility that retail sales of cannabis could be adversely affected if customers prefer to remain at home because of worries about getting infected by the fast-spreading coronavirus.
The investors are concerned that the COVID-19 epidemic could lead to a recession in the economy. Thus, they are choosing to divert their money to cash and other related assets that are regarded as safer options, compared to stocks.
In this article, we are highlighting recent updates for two pot stocks – MDC, MXC -that have a well-planned clinical trial pipeline for the upcoming years.
Interesting Read: Investing in Pot Stocks: Cannabis Industry 2020 Outlook
An Australia-based medical life science company, Medlab Clinical Ltd is into developing therapeutic pathways for obesity, depression and pain management. The Company is also engaged in the sale of nutritional products in the US and Australia.
For pain management, the Company is developing medicines based on cannabis. NanoCelle™, a medicine delivery system (nano-particle) of Medlab, is being applied to its medicines, nutritional products as well as off-patent medicines such as statins.
NANABIS™ advanced cancer trial results:
On 09 March 2020, Medlab Clinical announced the results of the NanaBis™ advanced cancer pain clinical study. The clinical trial was conducted at the Royal North Shore Hospital under the Investigation of Professor Stephen Clarke.
NanaBis™ is a drug formulation that comprises Delta–9–Tetrahydrocannabinol (THC) and cannabidiol (CBD) in a ratio of 1:1. It is a highly purified, standardised blend in a patented submicron particle delivery platform (NanoCelle™) optimised for buccal delivery. NanaBis™ is used for bone pain treatment in patients of breast and prostate tumour with bone metastasis.
Director of Medical Research at MDC on the positive results from the trial commented that the completion of MCD’s SAD/MAD clinical trial with NanaBis™ in pain management advanced cancer has demonstrated safe. Moreover, he also mentioned that the findings relevant to pain management offer data to allow progression to the next phase of development of NanaBis™.
Going ahead, the Company would commence secondary assessment of the information while investigating with several regulatory agencies across the globe in preparation of the upcoming Phase III clinical study.
Phase III study is estimated to be completed by December 2022, and the filing for NanaBis™ is due for end 2023 to mid-2024.
Stock Information:
On 11 March 2020, MDC stock ended the day’s trade at $0.210, in line with the previous day’s close. The market capitalisation of the stock was noted at approximately $48.98 million. The stock has nearly 233.22 million shares outstanding with the 52-weeks low and high price of nearly $0.200 and $0.560, respectively.
MGC Pharmaceuticals Ltd (ASX:MXC)
A European biopharma company, MGC Pharmaceuticals Ltd is a leader in supplying medicines derived from GMP Phytocannabinoid for the patients worldwide. MXC has partnerships with universities, academia, and companies globally to perform extensive research and to develop the highest quality of therapeutic formulations.
MGC Pharmaceuticals has a strong product offering for three prevalent diseases - Irritable Bowel Syndrome (IBS), epilepsy and dementia. The Company has additional products in the development stage.
CogniCann® Phase II Clinical Study
On 09 March 2020, MGC Pharmaceutical, unveiled about the commencement of the CogniCann® Phase II clinical study.
- The treatment in first patients began on 09 March 2020 in MGC Pharma’s Phase II Clinical Trial in partnership with the Notre Dame University of Australia in Perth.
- This study is for the investigation of the effects of CogniCann®, which has been developed with the specific objective to treat dementia and Alzheimer’s disease-associated symptoms by the MXC’s Clinical Advisory and Research team.
- The trial is aimed to validate the clinical efficacy of CogniCann® and to establish the therapeutic dose range. The study will be performed by Notre Dame University, Australia, with several aged care facilities in Perth.
- The study is a randomised, placebo-controlled, double-blind, crossover study and includes 50 patients of 65 years and above.
- New patients are anticipated to begin treatment for each week, with the study taking 18 weeks per patient.
- The Company mentioned that the results from this study are anticipated by the end of the third quarter of 2021.
MGC Pharma also mentioned that on completion of the study, the Company would own all Intellectual Property and findings.
Moreover, the researchers will obtain a nonexclusive, royalty-free global licence to use the Intellectual Property of project for non-commercial research that also includes research publications.
In Australia, under the Special Access Scheme (SAS), CogniCann® is now available for a prescription through the distributors of the Company - Health House International Pty Ltd and Cannvalate Pty Ltd. It is expected to bring additional revenue from these distributors to the Company both in Australia as well as global markets during 2020.
Stock Information:
On 11 March 2020, MXC stock ended the day’s trade at $0.021, a decline of 4.545% compared to the previous day’s close. The market capitalisation of the stock was noted approximately $30.85 million. The stock has nearly 1.4 billion shares outstanding with the 52-weeks low and high price of $0.020 and $0.067, respectively.
