For months it seemed Avecho (ASX:AVE) was going to pot, figuratively, but now it is literally.

Avecho has a patented drug delivery system called targeted penetration matrix (TPM) which is derived from vitamin E and enhances the solubility and absorption of certain drugs and nutrients.

Last October Japanese medtech Terumo walked away from trying to deliver an anaesthetic with it because it failed safety tests.

But now it has a new lease of life thanks to a deal with cannabidiol supplier Purisys. The companies will use Avecho’s TPM technology to develop new oral cannabinoid products.

Essentially, the technology will help cannabinoid-derived products be as efficient as they can be.

Avecho’s chief scientific officer Paul Galvin says this is important for cannabinoid products because of their poor solubility.

Avecho chairman Greg Collier said both the medicinal and consumer cannabis markets were seeing solid interest and investment. Cannabinoids account for 40 per cent of the global cannabis market.

“We believe the addition of TPM will provide commercially advantageous differentiation,” he said.

“This agreement provides both companies with the opportunity to combine their respective expertise in a way that can rapidly bring truly differentiated products to this exciting and growing market.”

Stockhead has contacted the company for further comment.

Shares gained 50 per cent at market open today after several months of stagnation following the Terumo door slamming shut.


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In other ASX cannabis news today:

Bod Australia (ASX:BDA) has more than doubled its range of products available in the UK, launching four new capsule-based products. These are designed to target specific conditions including stress and anxiety, anti-inflammation, general wellness and liver protection.

Although the UK is one of the worst hit countries by COVID-19, Bod has sold 48,000 units since December 2019.