Summary
- MGC Pharmaceuticals received a cannabis research cultivation permit, allowing the company to continue botanical research projects with RMIT University for anticancer treatments.
- Preliminary study results highlight that NeuroScientific Biopharmaceuticals' drug EmtinB can help multiple sclerosis' patients by regenerating myelin in the central nervous system.
- Nanoveu's antiviral protection products are high in demand, backed by proven effectiveness against eradicating viruses.
- BGT's study suggests Flavocide to be classified within the toxicity range of currently registered insecticides.
Today, the Australian stock market ended in red zone, with benchmark index, S&P/ASX 200 settling at 5941.1, down by 0.61 per cent as compared to Monday's close of 5977.5. The exchange reflected the negative sentiments due to rising cases in Australia, which are being considered as the second wave of infection due to community transfer.
US market on Monday had a mixed session. NASDAQ Composite and S&P 500 were down by 2.13 per cent and 0.94 per cent, respectively, while Dow Industrials was up by 0.04 per cent. Early in the day, market rallied on fast track vaccination's hopes; however, drop began in the market after California ordered a shutdown of indoor businesses to curb the spread of the virus. The state government ordered to close facilities including museums, cinemas, bars, zoos, wineries, and restaurants.
On ASX, all sectors ended the day’s trade in red zone except for consumer staples. Australia began its first phase human trial of a COVID 19 vaccine on Monday, but it seems the Australian stock exchange ignored this piece of news and continued a gloomy session.
Related: Australia Covid-19 restrictions, What is allowed and what is not
Here are few small-cap stocks listed on the ASX that released significant market updates.
MXC Gets Cannabis Research Cultivation Permit, Enabling to Proceed with Botanical Research Projects
Biopharma firm, MGC Pharmaceuticals Ltd (ASX: MXC) is based in Europe and specialises in the development and production of phytocannabinoid derived medicines.
On 14 July, MXC announced that the Australian Office of Drug Control (ODC) granted a Cannabis Research Cultivation Permit to the firm. The permit allows MXC to join hands with other companies for improving the existing genetics and creating new genetics for the Australian market.
The permit follows the receipt of the Cannabis Research Licence in 2019. Now, MXC can proceed with botanical research projects in association with RMIT University, which will cover cultivating and breeding strains to test against cancer cells for optimising effectiveness. The strains will then be screened for anticancer activities, starting with melanoma and prostate cancers.
Roby Zomer, co-founder and MD of MGC Pharma highlighted the grant as a significant milestone for the Company in its domestic market, as it advances towards expanding the possible application of its products.
On 14 July, MXC last traded at AUD 0.023. The Company has a market cap of AUD 36.42 million.
Do Read: What’s latest with these ASX-listed cannabis stocks- MXC, THC, BDA
NSB Brings Hope for Multiple Sclerosis' Patients
NeuroScientific Biopharmaceuticals Ltd (ASX: NSB) is a health care sector player that develops peptide-based pharmaceutical drugs. These medicines are designed for treating neurodegenerative conditions such as Alzheimer's disease, glaucoma, and multiple sclerosis.
The company has announced positive preliminary results from a preclinical study of its lead compound EmtinB in a multiple sclerosis (MS) model. In this study, EmtinB's potential was assessed against the leading drug Copaxone®. France-based independent contract research organisation Neuron Experts conducted the study.
In chronic disease MS, the body's immune system starts attacking the myelin sheath that surrounds nerve fibres. Myelin's function is to protect and insulate nerve fibres.
The recent study examined the direct effect of EmtinB on the formation of myelin and found that the drug significantly increased myelin formation.
NSB CEO and Managing Director Matthew Liddelow commented on the development, stating that the outcomes point towards a possible breakthrough in treating multiple sclerosis. Till now, there are no approved therapeutic medications available for MS' patients that can regenerate myelin in the central nervous system.
On 14 July 2020, NSB inched upward by 15 per cent to close the session at AUD 0.230, with a market cap of AUD 15.68 million.
Robust Demand for Nanoveu's Antiviral Products
Nanoveu Limited (ASX:NVU) offers highly immersive and ultra-functional mobile screen protector technology. Its EyeFly3DTM product changes 2D digital displays into 3D without requiring 3D glasses.
NVU has finished its inaugural production run and filled the first sales orders for its antiviral protection products, for which it has been witnessing strong demand. With the first dispatch of these antiviral products to AIBI Pte Ltd (AIBI), a Singapore-based company, which is also NVU's product distributor, Nanoveu will meet its inaugural sales guidance with revenue generated in early Q3 2020.
The company's antiviral technology, highly effective in eradicating viruses, has been proven to eliminate 99.99 per cent of OC43 in 30 minutes. OC43 is a viral strain that affects humans and is also a surrogate for COVID-19. The effectiveness of these antiviral products is also proven against other viruses and bacteria like coronavirus MHV-A59, e. Coli, and Influenza A (subtype H3N2).
Nanoveu has already filled first orders for these antiviral products from clients in the US, UK, Australia, and other key international markets. The distribution partners are expected to use the Nanoveu protection technology for a broad range of applications including computer screens, touchscreen surfaces, and protection for benchtops.
On 14 July, NVU advanced further by 17.742 per cent to settle the day’s trade at AUD 0.073, with a market cap of AUD 8.22 million.
BGT's Findings Determine Flavesone as Moderately Toxic for Environment
Australian agtech development company, Bio-Gene Technology Limited (ASX: BGT) enables the next generation of new insecticides to address global issues of insecticide resistance and toxicity.
BGT has reported initial results from avian eco-toxicity studies, performed using the active constituent contained in Flavocide, which is technical grade flavesone.
The research was undertaken on Japanese Quail (Coturnix japonica) to evaluate the environmental impact from the introduction of an insecticide to the environment. Japanese Quail represented a key test species.
The study was crucial for understanding the safety profile of products comprising flavesone when released into the environment. It determined Flavocide technical, flavesone, as ‘moderately toxic’. The study suggested that Flavocide would be classified within the toxicity range of currently registered insecticides for this species, thus a positive outcome in terms of expected non-target impact assessment for registration.
On 14 July, BGT last traded at AUD 0.125, with a market cap of AUD 18.89 million.
