CannPal Animal Therapeutics (ASX:CP1) is the biggest winner on the ASX this morning after it secured an exclusive worldwide licence to commercialise a CSIRO micro-encapsulation technology.

CannPal has spent 18 months seeing if the technology, MicroMAX, can encapsulate CanPal’s hemp oil formulation. MicroMAX has passed this test and now CannPal has a monopoly on the rights to apply it to proprietary oil formulations to develop new products.

It also found significant anti-inflammatory activity in the oil formulation used during the MicroMAX evaluation.

CannPal will complete a small commercial evaluation for a potential anti-inflammatory formulation this quarter and has already filed a patent.

The company is probably best known for its CPAT-01 and DermaCann solutions which help reduce osteoarthritis and skin disease respectively.

Managing director Layton Mills told Stockhead CannPal was not walking away from these but that today’s deal represented a further opportunity for revenues.

“Our focus very much remains on our regulatory focused lead products (CPAT-01 and DermaCann) as that’s where the big reward is, but this could be an opportunity to generate some nice complementary revenues to support that work moving forward,” he said.

Because the oil formulation was made using less compounds from the hemp plant it will not require regulatory approval.

Shares climbed as high as 20c at market open – marking a nearly 74 per cent gain.


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