These 4 ASX cannabis stocks got investors' attention today. Picture: Getty Images
Health & Biotech
Investors were treated to some weed action on the ASX today, with four cannabis plays making separate announcements.
The industry is continuing to make ground in Australia, with latest data showing that it’s grown to just under $200 million.
Experts believe that Australia could potentially become a cannabis production powerhouse, supplying the world with our high-end weed.
Here’s a summary of today’s announcements on four ASX cannabis stocks:
This means that eligible Irish patients can now be prescribed with the drug free of charge.
Medical professionals in Ireland can also prescribe CannEpil for patients under their care for a range of medical conditions, in addition to epilepsy.
Other conditions for which CannEpil has already been prescribed for include anxiety, chronic pain, insomnia, PTSD, and Parkinson’s disease.
The drug is currently entering a Phase IIb clinical trial at the the Schindler Hospital in Israel in Q3 of this year.
MXC also reported that it has delivered its best monthly revenue to date of more than $360,000 during May.
The strong monthly sales revenue is for all non‐cannabinoid products, and was in line with its core business milestones.
The MXC share price rose by 4 per cent on the news.
The company announced that it is about to launch a CBD toothpaste in the UK, via an exclusive distribution agreement with Health House International.
The five-year deal has now expanded the availability of Zelira’s Sprinjene CBD toothpaste brand beyond the US.
The company says the UK is a market that represents significant growth opportunities for clinically validated, hemp-derived oral care products.
The toothpaste is made of patented formulation of zinc, black seed oil and CBD which are thought to fight conditions like gingivitis and reduce gum inflammation, and to which the addition of CBD could apparently make this even more effective.
To retain exclusivity, Health House is required to cumulatively purchase US$250,000 of Zelira’s CBD toothpaste in the first six months, and cumulatively US$500,000 in the first 12 months.
Zelira’s share price was unchanged on the news.
The company says the Therapeutic Goods Administration (TGA) has issued notices to all medicinal cannabis wholesalers to clarify wholesaling rules.
Based on the new rules, LGP said it had revised distribution agreements with all of its Australian distribution partners.
Distribution partners now act as distributors as opposed to wholesalers, still being responsible for warehousing and distributing product but without taking legal ownership.
This, the company says, will impact LGP in several ways.
First, it will increase LGP’s revenue with the realised sales price being to the pharmacy instead of the wholesaler.
However, the company will now incur an increase in cost of sales representing distribution costs, which typically account for 15-25% of the price to pharmacy.
Overall, LGP believes there will be no material impact to its gross profit.
The company also said its June quarter is expected to be an anomaly, with reduced Australian revenue and cost of sales compared to the prior quarter.
Meanwhile, its purchase order deal with German wholesaler Demecan is under threat, as the German company has not yet received an approval required to import the remaining ~7,000 units it ordered from LGP.
In the event that Demecan does not receive regulatory approval before the end of the June quarter, LGP will instead package this product for Australia, where according to LGP, it may be sold at superior pricing in subsequent quarters.
The LGP share price dropped by almost 6 per cent on the news.
The company announced that further intellectual property (IP) has been filed in support of its EMD-004 drug development program targeting the symptoms of irritable bowel syndrome (IBS).
The new IP was filed after extensive analysis of Emyria’s proprietary clinical data that was collected from consenting patients who obtained relief from their IBS condition while being treated at Emyria’s Emerald Clinics.
According to Emyria, the clinical data represents one of the largest clinical registries for medicinal cannabis, collected under an extensive review of the global literature and patent landscape.
Through this, the company owns one of the largest and highest quality real-world clinical datasets in the world covering the long-term safety and efficacy of pharmaceutical-grade cannabinoid-based medicines.
EMD-004 is Emyria’s second drug development program to be launched following analysis of this data. A large observational study involving IBS patients is currently underway across Emerald Clinics.
Investors gave this news a thumbs-up, driving EMD shares up by almost 6 per cent.
At Stockhead we tell it like it is. While MGC Pharma is a Stockhead advertisers, it did not sponsor this article.
Health & Biotech
Health & Biotech
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