INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) is an interesting point of departure for understanding some of the nuance involved in sifting through the many faceted marijuana stock universe. Based on our own analysis, the key dynamic is the intersection of medical marijuana and the current craze going on right now in Canadian cannabis plays.
According to a recent analyst research report out of Canaccord Genuity, Canada’s push to legalize marijuana could be a “game changer” for the recreational pot industry with the potential to reach C$6 billion ($4.5 billion) in sales by 2021. A massive black market for marijuana exists in Canada that, if brought into legal channels, might bring about sales of 400K kg, or nearly 900K lbs, of cannabis in year one. If legalization occurs along expected timelines, there will be about 3.8 million legal recreational users of marijuana across Canada by 2021, according to the research note. Demand for medical cannabis is growing at a significant pace and by 2021, combined annual demand for medical and recreational cannabis will be about 575,000 kilograms, the Canaccord report said.
APHRIA INC COM NPV (OTCMKTS:APHQF) is a good example of the best that the Canadian marijuana space has to offer. According to Benzinga.com, APHQF is currently at the top of the list “of all the stocks in the The Marijuana Index’s comprehensive list of North American marijuana-related stocks” as far as total performance this year. Recently, Aphria Makes $1,000,000 Investment in Tetra Bio-Pharma via Private Placement to Fund PhytoPain Pharma Clinical.
In the event the company’s recent over-allotment funding option is exercised in full, the aggregate gross proceeds of the Offering will be C$40,250,000. According to a recent release, “The Company intends to use the net proceeds from the Offering for the development of infrastructure, purchase of capital equipment, capacity expansion, strategic investments, and general working capital purposes.” That extra cash is a very important advantage as the space moves into an expansionary mode.
Medical Marijuana Inc(OTCMKTS:MJNA) is another very well-known stock in the medical marijuana space that has some interesting catalysts in play. The company recently announced that its major investment company AXIM® Biotechnologies, Inc. (AXIM® Biotech) (OTC PINK: AXIM) has filed an IP application with the World Intellectual Property Organization (WIPO) on a proprietary method to extract THC-A (tetrahydrocannabinol acid) from cannabis plants and to achieve THC (tetrahydrocannabinol) with higher purity than conventional methods being used in the market today.
“We are extremely excited to see that AXIM has filed this IP as it represents the first stage of a chain of processes in development of novel and revolutionary drug products all based on AXIM’s propriety IP,” said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. “This is another example of how AXIM is at the forefront of the cannabis biotechnology industry. This extraction method will change how THC can be utilized in products in the future and open up new possibilities for the industry as a whole.”
However, we would note that MJNA lacks direct exposure to the Canadian marketplace.
INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) could be the most interesting possibility given the fact that the stock is really flying under the radar right now simply because fewer traders are aware of it. That said, this is a clean balance sheet play with recent progress on the R&D front, demonstrating that certain cannabinoid compounds are capable of affecting a specific protein in the biochemical pathway relevant to healing and fibrosis in the lung.
That represents a major step toward getting a foothold into a huge growth market that most folks know very little about: Chronic obstructive pulmonary disease (COPD).
The global COPD market is estimated to currently be worth $11.3 billion, and is forecast to reach a value of $15.6 billion by 2019 according to GBI Research.
Dr. Sazzad Hossain, Chief Scientific Officer of InMed, noted, “Taking into consideration the impact of this specific protein’s role in lung tissue remodeling and fibrosis, these preliminary data are important and promising for developing cannabinoid-based therapies for COPD.”
“We continue to make significant scientific progress that further validates InMed’s proprietary bioinformatics analysis tool as a cost-effective way to identify drug-disease targets and expedite their validation in pre-clinical models,” added Dr. Ado Muhammed, Chief Medical Officer of InMed. “In addition to our primary drug development programs in Epidermolysis Bullosa and Glaucoma, we are pleased to continue to expand the role of cannabinoids in other disease areas.”
About Dr. Muhammed
Dr. Muhammed has extensive R&D and clinical experience in the development of cannabinoid therapies. His previous position was Associate Medical Director at GW Pharmaceuticals, a UK-based pharmaceutical company that has pioneered the cannabis-based medicines sector. He is a Member, Faculty of Pharmaceutical Medicine (Royal College of Physicians of England), the British Association of Pharmaceutical Physicians and the International Society for Pharmacovigilance.
- Muhammed is the only GW senior exec. Working for a public bio-tech from GW Pharma with ExPERIENCE in getting Cannabis Drugs developed! ; GWPH
We will look forward to following up on these stories as new data hits the market.