AXIM® Initiates New Studies & Pulls Ahead of the Competition
November 3, 2016 12:19 pm ET
There are many different companies involved in cannabinoid research, but only a handful have progressed to the point of clinical trials. GW Pharmaceuticals plc (NASDAQ: GWPH) is perhaps the most well-known biotech firm in the space with a market capitalization of $2.8 billion, but AXIM® Biotechnologies Inc. (OTCQB: AXIM) has become a formidable competitor as it begins clinical trials for its CanChew Plus® Gum for the treatment of irritable bowel syndrome (“IBS”).
In this article, we will take a closer look at AXIM® Biotechnologies’ progress in developing its clinical pipeline and why investors might consider investing in the firm.
Efficient Capital Allocation
AXIM® Biotechnologies differentiates itself from many competing cannabinoid-focused biotech firms with its efficient capital allocation. While larger companies have spent millions on clinical trials, the company has managed to spend very little to begin clinical trials in the Netherlands with the help of its partners. The data from its European clinical trials could be used to approve the product in the United States and other developed markets around the world, and AXIM recently announced sufficient funding to advance those trials.
This efficient capital allocation means that investors face less risk of dilution from fundraising. In July, GW Pharmaceuticals raised nearly $300 million to support its ongoing clinical programs in a move that hurt its stock price over the near-term. The company’s efforts appear to be paying off with positive clinical trial results, but with everything else equal, investors are better off investing in companies that have limited dilution to capture more of the upside.
The company plans to use this efficient process to develop a wide product pipeline targeting various conditions with cannabinoid-based medications:
Making Substantial Progress
In addition to the extensive pipeline shown above, AXIM® Biotechnologies recently announced a partnership with Wageningen University in the Netherlands to conduct clinical trials evaluating its products for safety and efficacy. The company’s flagship CanChew Plus® is the world’s first patented controlled-release cannabinoid chewing gum that contains 10mg of CBD procured from industrial hemp plants. Since the gum isn’t psychoactive, it is available in all 50 states without any prescription. The company is also advancing MedChew Rx™, a patented controlled-release gum containing both CBD and THC (see diagram above for indications being studied).
The CanChew Plus® IBS study will evaluate the concentration of cannabidiol (“CBD”) in the blood following the consumption of 10mg and 30mg CBD gum for thirty-minutes. The data from this initial study will determine the appropriate dosing for patients in a subsequent Phase II clinical trial that will evaluate the safety and efficacy of CanChew Plus® gum in treating IBS symptoms and pave the way toward regulatory approvals.
The company believes that the CanChew Plus® gum’s delivery method is superior to other CBD drugs since it has a controlled release and no negative aftertaste. In many ways, the concept is similar to nicotine gum that uses the same concepts to help smokers avoid cravings over prolonged periods of time. The company has exclusive rights to market and distribute the gum around the world, creating a significant barrier to entry for competitors.
AXIM® Biotechnologies has initiated clinical trials in a move that could set the stage for significant value creation over the coming quarters. With a robust product pipeline in place, investors may want to consider the company as a leading biotech in the burgeoning cannabinoid market.
For more information, visit the company’s website at www.aximbiotech.com.