New York, New York (NetworkNewsWire) – The upward trajectory of
the cannabis industry has garnered comparisons to the Internet boom
of the early 2000s, as North American sales are on pace to record a
compound annual growth rate of 25 percent through 2021, according
to Arcview Market Research (1). These comparisons are certainly
attention-grabbing, but the full potential of the evolving
marijuana market could be even larger. InMed
Pharmaceuticals, Inc. (CSE: IN) (OTCQB: IMLFF) (IMLFF
Profile), a Vancouver-based
biopharmaceutical company, has developed a robust, high-yield
biosynthesis process capable of enabling the manufacture of all 90+
naturally-occurring cannabinoids found in the cannabis plant. This
could be a game changing development for companies operating within
the burgeoning sector, including Axim Biotechnologies, Inc.
(OTCQB: AXIM), GW Pharmaceuticals (NASDAQ:
GWPH), Zynerba Pharmaceuticals, Inc. (NASDAQ:
ZYNE) and pharmaceutical heavyweight Eli Lilly and
Company (NYSE: LLY).
Perhaps the clearest way to demonstrate the potential of an
effective cannabinoid biosynthesis platform is to study a more
established product – bio-synthetic insulin. Healthline
estimates that 29.1 million people in the United States have
diabetes, with diagnosed cases costing the country an estimated
$245 billion in 2012. Although the chronic disease accounted for
nearly 1.6 million deaths in 2015, according to data from the World
Health Organization, a scientific breakthrough in 1921 greatly
improved the survivability of diabetes. As documented by a
contributor to The Seed
Investor, it was then that a team of Canadian researchers
discovered a way to process pig pancreases into a human insulin
replacement.
While this discovery certainly improved the outlook for diabetes
sufferers, it was just the first step toward the insulin market as
it exists today. Originally, pharmaceutical insulin was produced
directly from the organs of pigs, with it taking roughly “5,000 pig
pancreases to produce just eight ounces of insulin.” Put simply,
this process was expensive and time-consuming, and, while producer
Eli Lilly and Company certainly capitalized on
the breakthrough, a discovery in the 1970s once again changed
the game. A small biotechnology firm called Genentech used
recombinant DNA techniques to successfully produce a bio-synthetic
“human” insulin, making it the first human protein to be
manufactured through biotechnology. In addition to being
significantly cheaper to produce than animal-derived alternatives,
this synthetic insulin was shown to cause less allergic reactions
in patients. Within a few years, biosynthetic insulin replaced the
vast majority of animal-based alternatives, and the companies at
the heart of the innovation have reaped the rewards. Genentech was
acquired by Roche Holdings for $48 billion in 2009, while a 2014
report from Transparency
Market Research predicted that the global insulin market will
reach $32.24 billion by 2019.
Parallels between the insulin market of the 1960s and today’s
pharmaceutical cannabinoid industry are too clear to be ignored.
Cannabis biotech companies are currently producing millions of
plants each year in order to extract the cannabinoids that are
central to their products and development candidates. However,
maintaining the controlled conditions required to produce
consistent plants is both costly and time-consuming, and
competitive market conditions in drug development cost will see
these pressures from growing and manufacturing expenses.
Agricultural and Capital Expense cost are high, from Land, facility
costs with high-efficiency lighting systems and sophisticated
greenhouse production facilities, investors are pouring millions of
dollars into pot production. The cost for the cannabinoids, the
active pharmaceutical ingredients (API’s) needed in cannabis drug
development are staggeringly high. InMed
Pharmaceuticals, Inc. (CSE: IN) (OTCQB: IMLFF), with
its innovative biosynthesis technology utilizing modified E-coli
bacteria, could be approaching the introduction of a cheaper and
better alternative for providing the API’s in the massive
industry’s cannabinoid-focused segment following its filing of a
provisional patent application pertaining to the technology earlier
this week.
Potential benefits of biosynthesis of cannabinoids are
wide-ranging, as InMed Pharmaceuticals notes in its corporate
presentation. The cost savings versus traditional growing and
extraction methods are certainly noteworthy (and they echo the
benefits of bio-synthetic insulin nicely), but monetary benefits
are just the tip of the iceberg. Because the cannabinoids produced
using InMed’s proprietary manufacturing techniques are
bioequivalent to the naturally-occurring compounds, biosynthesis
could enable enhanced quality control and purification.
Importantly, the technology could be key in unlocking the minor
cannabinoids that are currently economically unfeasible to produce
and comprehensively study. The company estimates that its
cannabinoid biosynthesis process, a method that’s been likened to a
“pharmaceutical
copy machine” for its ability to produce bioequivalent
compounds.
"This novel approach to the biosynthesis of cannabinoids is a
game-changer for drug development. The importance of producing
cannabinoids that are identical to the naturally occurring
compounds cannot be overstated. Many drug development efforts with
synthetic derivatives have failed," Dr. Vikramaditya Yadav,
Assistant Professor of Chemical and Biological Engineering at
University of British Columbia, a co-inventor of the biosynthesis
technology, stated in a recent news release (http://nnw.fm/Z30dH). "In our extensive
experimentation, the E. coli system is more robust and
more efficient for the manufacturing of cannabinoids as compared to
other microbial platforms."
Links between Eli Lilly’s early ventures in the synthetic
insulin market and InMed’s current forays into cannabinoid
biosynthesis were reaffirmed by InMed’s January 2017 appointment
of Martin Bott to its board of directors. Following Bott’s
appointment, market analysis firm CFN Media called the move “a
strong vote of confidence for [InMed’s] future.” Bott has worked at
Eli Lilly for nearly 30 years prior to his appointment to the InMed
board, overseeing the drug giant’s investment of more than $1
billion into biosynthesis research. As InMed President and CEO Eric
A. Adams noted in a news release following the addition, “Martin
Bott has established a significant leadership position in financial
and business expertise with one of the world's leading
pharmaceutical companies. His depth of knowledge in navigating the
complexities in healthcare finance and operations on a global level
will be invaluable to InMed.”
InMed’s intellectual property portfolio also includes a
promising drug development pipeline targeting unmet medical
conditions using non-THC cannabinoids. The company’s lead
candidate, INM-750, is currently being evaluated as a topical
treatment for epidermolysis bullosa, an orphan pediatric disease,
characterized by extremely fragile skin, that has no currently
approved therapies. InMed estimates the market potential of INM-750
at $1 billion, with phase I clinical trials scheduled to begin in
2018. The company is also developing INM-085 for the treatment of
glaucoma, a serious eye disease with a global market valued in
excess of $5 billion. INM-085 is currently being evaluated in
pre-clinical studies. These drug candidates further strengthen
InMed’s position within the burgeoning cannabis sector, providing
an additional application for its groundbreaking biosynthesis
platform.
The activity of other cannabis industry players highlights the
huge market potential of InMed’s novel approach to cannabinoid
biosynthesis. Axim Biotechnologies, Inc. (AXIM) is
currently developing a diversified and robust clinical pipeline of
cannabinoid-based products. Its most advanced program is its phase
II clinical trial of its MedChewRx™ chewing gum for the treatment
of irritable bowel syndrome. Axim anticipates completing this trial
in the near-term and advancing toward a pivotal phase III clinical
trial by early next year.
Coinciding with this advancement, Axim has made numerous moves
in recent months to secure the needed supply of cannabinoids
required to evaluate the efficacy of its development pipeline. In
addition to importing pharmaceutical-grade hemp oil from Italy,
Spain and Denmark, Axim recently purchased land in the Netherlands
in order to facilitate the construction of a state-of-the-art
manufacturing facility. Per the company’s website, “Axim
is in the process of developing a unique extraction and
freeze-drying technology for production of molecularly/genetically
controlled—therefore extremely pure—pharma-grade cannabinoids
extracted from industrial hemp.” As noted in a November 2016
news
release, this platform will focus primarily on the extraction
of THC, the most commonly known cannabinoid derived from the
cannabis plant.
GW Pharmaceuticals (GWPH) is well-known within
the cannabis industry as the company behind the world’s first
prescription drug derived from the cannabis plant, Sativex®, which
is approved for the treatment of spasticity due to multiple
sclerosis in 28 countries worldwide. The company’s lead cannabinoid
product candidate is Epidiolex®,
a liquid formulation of pure plant-derived cannabidiol being
developed for the treatment of a number of rare childhood-onset
epilepsy disorders. As noted on its website, GW is
currently in a “unique position to develop and manufacture
plant-derived cannabinoid formulations worldwide at sufficient
quality, uniformity and scale,” but some analysts have expressed
doubt regarding the sustainability of this model. In an article
published last year by Seeking
Alpha, a contributor noted the recent fall in CBD prices
concurrent with increasing supply. “The popularity and history of
cannabis growing, combined with the large amounts of arable land,
cheap pharmaceutical manufacturing, and cheap labor in India should
scare anyone invested in hemp farming,” the article states. “The
price-points we are seeing now don't seem sustainable.” Synthetic
cannabinoids, as produced through InMed’s proprietary biosynthesis
platform, could provide a long-term solution to this issue.
The recent activity of Zynerba Pharmaceuticals, Inc.
(ZYNE) reiterates the potential marketability of InMed’s
platform. Zynerba’s shares plummeted to 52-week lows last month
after the company announced
disappointing top-line results from its phase II study of ZYN002,
marketed as the first and only synthetic CBD formulated as a
patent-protected permeation-enhanced gel for transdermal delivery
through the skin and into the circulatory system. As noted on its
website,
Zynerba’s product candidates are “synthetically manufactured per
FDA/CGMP regulations” in an effort to “provide consistent potency
and eliminate impurities in the product.” Similar to InMed’s
biosynthesis platform, Zynerba’s manufacturing techniques offer
several advantages over botanically-derived cannabinoids, dodging
“the natural resources and security measures required to grow
Cannabis, as well as the strict batch controls required by
regulatory agencies in pharmaceutical manufacturing.”
A report published by the National Institutes
of Health affirms that cannabinoids have a very high
therapeutic index with low toxicity, and the market is currently
filled with companies looking to translate these benefits into
returns for shareholders. Since the 1980s, when Eli Lilly
and Company (LLY) developed a synthetic THC product called
Nabilone to treat nausea associated with chemotherapy, demand for
biosynthetically-produced cannabinoids that are bioequivalent to
those that occur naturally within the cannabis plant has been on
the rise. InMed Pharmaceuticals could be approaching this
breakthrough with its robust, high-yield biosynthesis process,
presenting an enticing opportunity for investors looking to
capitalize on rising demand for cannabinoid-based
pharmaceuticals.
Editorial Sources:
1) Arcview Research http://nnw.fm/OHz8c
For more information on InMed Pharmaceuticals, Inc. please
visit: InMed
Pharmaceuticals
About NetworkNewsWire
NetworkNewsWire (NNW) is an information service that provides
(1) access to our news aggregation and syndication servers, (2)
NetworkNewsBreaks that summarize corporate news and
information, (3) enhanced press release services, (4) social media
distribution and optimization services, and (5) a full array of
corporate communication solutions. As a multifaceted financial news
and content distribution company with an extensive team of
contributing journalists and writers, NNW is uniquely positioned to
best serve private and public companies that desire to reach a wide
audience of investors, consumers, journalists and the general
public. NNW has an ever-growing distribution network of more than
5,000 key syndication outlets across the country. By cutting
through the overload of information in today’s market, NNW brings
its clients unparalleled visibility, recognition and brand
awareness. NNW is where news, content and information converge.
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Please see full terms of use and disclaimers on the
NetworkNewsWire website applicable to all content provided by NNW,
wherever published or re-published: http://NNW.fm/Disclaimer
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by NNW are
solely those of NNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable NNW for any investment
decisions by their readers or subscribers. NNW are a news
dissemination and financial marketing solutions provider and are
NOT registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, NNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and NNW undertake no
obligation to update such statements.
Source:
NetworkNewsWire
Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Zynerba Pharmaceuticals (NASDAQ:ZYNE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Zynerba Pharmaceuticals (NASDAQ:ZYNE)
Historical Stock Chart
From Sep 2023 to Sep 2024