An Uncertain Month for Cannabis As the FDA Figures It All Out
We're back looking at the cannabis industry this week. It's one of the most exciting sectors in the market right now. There is so much confusion. Even the FDA hasn't decided where it stands yet. We check in with a leader in Canadian cannabis production and two pharmaceuticals to see how each is poised to succeed no matter what the FDA decides at the end of the month...
We’re back in the Cannabis sector this week. As we explained back on April 30th, May is going to be a pivotal month for the industry. There’s a lot of gray area in the market. So, the FDA has decided to form a high-level internal agency working group to figure it all out. Then it will hold a hearing on May 31.
The FDA isn’t the only moving piece of the puzzle. And no matter what the FDA decides, companies all around the world will keep producing cannabis and cannabis products.
So, let’s check in with out three companies for this week and how each is involved in this sector…
First up, we’ve got CannTrust (CTST). CannTrust is a federally licensed and regulated of producer of medical cannabis located in Canada. The company is committed to research and innovation and continues to evolve its patient and medical practitioner education program.
CannTrust has one of the largest facilities in North America. It’s the only facility of its kind engineered with state-of-the-art perpetual greenhouse know how. This intellectual property is unique to this facility. It allows the company to get the cost down below traditional indoor facilities and greenhouses.
The company is leading new clinical trials to be a global resource for the medical cannabis community as legalization continues around the world.
CannTrust is already working to build partnerships around the world to expand into the global market. These partnerships include one of the first Australian cannabis companies to be awarded a medical cannabis license. The company has also partnered with Stenocare in Denmark, which became Europe’s first marijuana IPO just last year.
The company’s sales are around half and half oil and dried flower, but CannTrust isn’t planning on stopping there. The plan is to drive innovation through nanotechnology. Its patent pending process results in a concentrated, water soluble, tasteless, colorless, odorless product with high bioavailability which makes it perfect for infused beverages and sublingual sprays.
CannTrust is making it clear that it’s going to be a global leader and won’t let anyone beat it being the first to market with the best products and growing technology.
The company will announce its first quarter financial results tomorrow, Tuesday the 14th. We’ll break all that down when we check in with our mid-week update on Wednesday.
Last week shares opened Monday at $5.93 and closed on Friday at $5.90. It was bumpy, but overall we’ll call that one flat for the week.
Our other two candidates won’t be new to you if you’ve been following our contest for the past few weeks. Both made an appearance the week of April 21st.
We’ve got Cara Therapeutics, Inc (CARA). Cara Therapeutics is a clinical-stage biotech with the goal to fundamentally change the way pain and pruritus are managed.
To solve this problem, the company focuses on synthesized receptor agonists. Right now, the company’s focus has been on CR845. CR845 is a kappa opioid receptor agonist that is in the third phase of FDA clinical trials.
CR845 is peripherally acting so it does not been to open the brain as current opioid analgesics need to. This would surpass the step that causes addiction and dependency while still allowing for pain management. Since this drug is in the third stage of clinical trials, this is the drug that Cara Therapeutics has closet to market.
How does this have anything to do with the cannabis sector? Well the company also has the CR701 compound in preclinical research. This is a cannabinoid receptor agonist, also designed to manage chronic pain. Although this drug is only in preclinical research, the company could see CR701 brining in profits in as little as four years.
Cara Therapeutics announced its earnings for the first quarter of 2019 last week. We will check in on that any other updates during our mid-week update.
Last week shares opened for the week at $19.59 and closed on Friday at $18.81. That was a loss of nearly 4% for last week.
Finally, we’ve got Corbus Pharmaceuticals (CRBP), which is also a biopharmaceutical company. The company is focused on the development of synthesized compounds to treat inflammatory and fibrotic diseases.
Corbus Pharmaceuticals has a pipeline of compounds all in different stages of the FDA clinical trials process. Lenabasum is also a cannabinoid receptor agonist compound. It’s currently in phase 3 trials for two multi-system inflammatory disease and has a planned market launch of 2021. But, the company is sure the drug will be approved for more applications down the line.
The company has a portfolio of over 600 compounds that it plans on introducing into phase 1 clinical trials starting in 2020.
It’s going to be an interesting week for shares of this one. On Friday, The Schall Law Firm announced the filing of a class action lawsuit against Corbus. According to the complaint, the company inappropriately changed the primary efficacy endpoint of its clinical trial for Lenabasum. Corbus manipulated data in an effort to conceal the study result’s lack of statistical significance. The law firm says that when the market learned the truth, investors suffered damages.
Shares opened last Monday at $7.55 and closed on Friday at $7.50. Although now a straight line, we’re going to call that flat for the week.
We still think that cannabis is one of the most exciting sectors that we cover. So we’ll check back in on Wednesday and see how the market is responding amongst the news chatter.