22 June 2021
Earlier this year, GW Pharmaceuticals became the center of attention of the cannabis industry after Jazz Pharmaceuticals plc (Nasdaq: JAZZ) acquired the cannabis biotech company for more than $7 billion.
GW is considered to be a trailblazer in the cannabis sector and was the first to receive approval from the US Food and Drug Administration for a cannabis-based treatment. We believe the company has set the stage for other biotech cannabis companies to be acquired as they continue to advance therapies through FDA clinical trials.
Cannabics is Focused on Advancing its Pipeline of Therapies
Cannabics Pharmaceuticals Inc. (OTCQB: CNBX) is a company that is trying to follow GW’s footprint and is a global leader in the development of cancer related cannabinoid-based medicine.
One of the reasons we are excited about Cannabics is related to the number of initiatives in its drug development pipeline. The company has four cancer treatment drug development projects, one pre-cancer antitumor drug development project, one palliative drug development project for the treatment of Cancer related Anorexia Cachexia Syndrome (CACS), and two early-stage drug discovery projects that target neurodegenerative and mental health diseases.
Last week, Cannabics announced the expansion of its research program with new drug development projects that target prostate cancer, neurodegenerative, and mental health diseases. The announcement comes after the company released promising initial pre-clinical data from its in-house drug discovery facility.
Study results indicate the potential efficacy of a variety of specific analytes for the indications that were tested. The experiments that were conducted on cell lines and human biopsies had received approval from the Helsinki Committee. Going forward, Cannabics plans to develop these drug candidates and to continue testing with animal models, while entering a drug regulatory development route for each indication.
One of the reasons we are excited about this development is related to the timing of it. The expansion comes after Cannabics’ published promising animal model study results for its proprietary colorectal cancer treatment drug candidate RCC-33. The company recently announced plans to enter the melanoma and breast cancer markets with new drug development projects and we are favorable on these indications from a total addressable market (TAM) standpoint.
The management team said that Cannabics has established a drug development pipeline that is focused on indications that are a $78.1 billion market in aggregate. According to Fortune Business Insights, the breast cancer market is estimated to grow from $21.58 billion in 2019 to $55.27 billion in 2027.
We believe the market underappreciates the growth prospects that are associated with these indications that Cannabics is focused on and will monitor how the management team continues to execute.
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