When talking about cannabis stock performance in over the past few months, a new player has entered the field of discussion - Tilray Inc. (Nasdaq: TLRY).
The Nanaimo, B.C.-based biopharma company recently made big news when it announced that it would be the first Canadian company to import medical pot to the U.S. It’s a big deal worthy of discussion, for sure. TLRY stock spiked after that announcement. Despite tumultuous trading activity, its stock has been consistently trading higher than compared to its activity before the news broke.
TLRY’s market cap is currently valued at an impressive $15.4 billion. Recapping that major news: The company is planning to export capsules to the University of California San Diego that contain a formulation with two active ingredients (cannabidiol and tetrahydrocannabinol, aka CBD and THC). They have been extracted from cannabis plants for a clinical trial that will examine the drug for its potential to treat adults with essential tremor, a neurological disorder that causes involuntary shaking. These trials are scheduled to begin by early 2019.
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With a price hovering around $160, peaking at $269 at one point in September, could TLRY stock be a big bang for a big buck? There are a number of other companies engaged in biopharma research with market caps a fraction of what Tilray’s is currently worth, working to treat serious medical and social tragedies from cancer patients to opioid victims.
One of the leaders in the scientific research movement to study the effectiveness of cannabis-based products is Xanthic Biopharma Inc. (CSE: XTHC, OTCQB: XTHCF, Forum), which has a market cap: $14.2 million.
In July 2018; it was acquired by Green Growth Brands and its flagship product, Xanthic CBD Water, is produced by an independent PepsiCo. (Nasdaq: PEP) bottler, it is also currently distributed by a network of Pepsi independent distributors in hundreds of retail locations throughout Washington and Oregon. Xanthic has developed a proprietary process to make THC and CBD water soluble, producing cannabinoid-based beverages that have increased bioavailability, meaning much of the cannabinoid content is consumed when digested. CBD is a non-psychoactive cannabinoid revered for a wide range of mental benefits.
(Image via xanthicbio.com)
Targeting the North American market for terminal cancer patients and those suffering from chronic pain, Tetra Bio-Pharma Inc. (TSX: V.TBP, OTCQB: TBPMF, Forum) has a market cap: $182 million. This bio-pharma company is developing a portfolio of five cannabinoid-based drugs and like Tilray and Xanthic, has strong partnerships in industry (Aphria Inc. (T.APH)), research (New Brunswick Health Research Foundation) and academia (McGill University) sectors.
TBP is in the third phase of its Health Canada-approved clinical study for testing cannabis prescription drug PPP001 in advanced cancer pain; the filings from the FDA and Health Canada are expected in late 2018 to early 2019. The Company said in late September 2018; that it had made significant progress in its clinical trial for PPP005 the cannabis oil-based capsules destined for the natural health products market. With its clinical research partner, Santé Cannabis, Tetra stated that this, the first clinical trial of its kind in evaluating the safety and effectiveness of different doses and ratios of cannabis oils versus placebos, will be completed later this autumn. This study, for non-cancer, chronic pain patients, also looks at the side effect profile of the oils as well as the development of tolerance to these effects.
Cannabinoid-based biopharmaceutical company InMed Pharmaceuticals Inc. (CSE:IN, OTCQB:IMLFF, Forum) has a market cap of $136.6 million and its management states that its approach is to explore the potential of all 90+ cannabinoid compounds beyond THC and CBD to treat diseases with high unmet medical needs.
In late September 2018, InMed also made major newswhen it reported that it had filed a patent cooperation treaty application on its INM-405 program as it relates to cannabinoid-based topical therapies for pain treatment. This important step is designed to protect the intellectual property around the program as it is introduced in more than 150 different countries.
InMed's Vice President of Preclinical Research and Development, Dr. Eric Hsu, Ph.D. commented:
“While there are numerous pharmaceutical products to treat both acute and chronic pain, the increase in the number of prescriptions for the opioid class of products (oxycodone, hydrocodone, morphine, methadone, fentanyl, etc.) has led to concerns as these products can be highly addictive and have damaging side effects, including death.”
Stockhouse recently covered the connectionbetween biopharma research into cannabinoid-based therapies into treating the opioid crisis. Alternative treatments are in high demand. According to the United States Centers for Disease Control and Prevention, since 1999, the number of overdose deaths involving opioids (including prescription opioids and heroin) quadrupled, as have the number of prescriptions for opioids, yet there has been no increase in the amount of pain reported in the general population.
InMed operates in Vancouver, B.C., the hardest-hit Canadian city to feel the effects of the opioid crisis, in a country where it is estimated that 4,000 people will die from overdoses this year.
British biopharmaceutical company GW Pharma (NASDAQ: GWPH), with a market cap of $5 billion also has a proprietary cannabinoid product platform, is focusing its efforts on the millions of patients who suffer from epilepsy. Its flagship product, Epidiolex received FDA approval in June 2018 and an MAA decision is expected by Q1 2019. A U.S. commercial launch is expected in fall 2018. GW announced in early October 2018 that it intends to raise $300 millionthrough a public offering.
Finally, an honourable mention goes to the following bio-pharma companies, also trading on the Nasdaq with modest market caps that are doing work in a similar field to the heavyweights listed above.
- Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE) market cap: $143 million
- Cara Therapeutics, Inc. (NASDAQ: CARA) market cap: $941 million
- INSYS Therapeutics, Inc. (NASDAQ: INSY) market cap: $748 million
While a handful of companies make headlines for their advancements in researching and producing cannabinoid-based therapies to treat various ailments, there are many more that are just as far, if not farther along in the clinical trial process, but haven’t gotten quite the same attention. Investors won’t need to sit and wait for “the next Tilray” to make its presence known – the first movers in a number of distinct fields are already at work for a fraction of the price.