- BOD Australia is progressing ahead with clinical trials for its new CBD product.
- The sleep insomnia market is growing not just in Australia but globally.
- ASX:BDA share price has risen 9% on ASX today.
Medicinal cannabis, CBD, and hemp products company Bod Australia Limited (ASX:BDA) has entered into an agreement with the Woolcock Institute to undertake a ‘phase IIB’ clinical trial for its new CBD product. BDA share price on ASX has risen more than 9% on the announcement.
- The Woolcock Institute is one of Australia’s leading respiratory and sleep research institutes. The agreement is for conducting a schedule 3 clinical trial of BDA’s new CBD product.
- The ‘Phase IIB’ clinical trial will examine efficacy of BDA’s unique CBD formulation over 12 weeks, with approximately 200 participants.
- As a secondary objective, the trial will also determine objective sleep indices and anxiety and stress levels.
- Clinical trial is crucial before launching the product into Australia’s schedule 3 (Pharmacist Only) markets.
- Once approved, Schedule 3 CBD medicines will be available for sale to consumers over the counter by a pharmacist even without a prescription.
- The finished product will be patentable, allowing BDA to progress licencing agreements companies in schedule 3 markets in Australia, UK, and other markets.
- It will Unlock a large opportunity for Bod, as the Schedule 3 market is valued at AU$250 million, with an unregulated market estimated to be worth AU$3.5 billion.
BDA’s road ahead
Post product registration by the Therapeutic Goods Administration (TGA) in Australia, BDA will leverage its existing relations with H&H, Swisse Wellness, and others to drive sales growth. The Company will focus on the Australian market initially. Later, it will seek more global opportunities by obtaining registrations with the European EMEA Union and the US FDA.
BDA shares were trading 9.615% higher at AU$0.285 per share at 1:00 PM AEST.
The potential market opportunity for CBD products in insomnia markets is significant and increasing. The global insomnia market is estimated to reach AU$5.48 billion by 2023, demonstrating a CAGR of 4.2% from 2017. BDA, with the progress in clinical trials, can potentially explore the market better.