AXIM Biotech Offers the Broadest Pipeline in the Cannabis Industry
February 15, 2017 7:00 am ET
The cannabis industry is expected to surpass $50 billion in size over the coming years, with the bio-pharmaceuticals space being among the most attractive industry subsets. The best opportunities in the bio-pharma space have broad clinical pipelines that help diversify risk and proprietary technologies that offer advantages over the competition. Investors seeking out these attributes can generate the highest risk-adjusted returns for their portfolios.
In this article, we will take a look at AXIM Biotechnologies Inc. (OTCQB: AXIM) and why it represents one of the best opportunities in the cannabinoid bio-pharma space.
The cannabis industry is expected to reach $50 billion in size by 2026, according to Cowen & Co., driven by ongoing legalization across the United States. Investors looking to capture a piece of the market have many different opportunities, including everything from Scotts Miracle-Gro Co. (NYSE: SMG) to the plethora of cannabis consulting firms. Each of these industry subsets have different advantages and disadvantages for investors to consider.
The bio-pharmaceutical space represents an attractive subset of the industry given its traditionally high upside through the drug development process, large margins for approved products, and high barriers to entry for competition. Many big pharmaceutical companies have avoided the space due to uncertainty about the drug’s legal status, which has left the door open for smaller competitors to take advantage of compelling early-stage data suggesting the broad efficacy of cannabinoids.
GW Pharmaceuticals plc (NASDAQ: GWPH) is the largest cannabinoid-focused pharmaceutical company with a market capitalization of nearly $3 billion, but there are many smaller companies focused on many different areas of the market. AXIM Biotechnologies Inc. (OTCQB: AXIM) represents a compelling micro-cap opportunity given its broad pipeline of drug programs and its innovative chewing gum-based delivery system that sets it apart from competitors.
AXIM Biotech has developed one of the industry’s most diverse clinical pipelines with nine clinical programs in development. According to its website, the company plans to launch the first of its pharmaceutical products by 2018/2019 with Phase IIA clinical data expected this year and next year. These developments could provide significant catalysts for the company’s stock and potentially attract commercialization partners.
In late-January, the company announced that it began clinical trials at Wageningen University in the Netherlands for the treatment of Irritable Bowel Syndrome (IBS) with its CanChew Plus CBD gum. The company’s other clinical programs target everything from Multiple Sclerosis to Crohn’s Disease using the same delivery system. These programs help diversify risk for investors and ensure the highest risk-adjusted returns over time.
Medical marijuana has been legalized across much of the country, but there are many problems associated with smoking the drug. In particular, smoking may cause chronic bronchitis and injure the cell lining of large airways, causing symptoms like coughing, phlegm, wheezing, and acute bronchitis. Secondhand marijuana smoke also causes many of the same problems as secondhand tobacco smoke for those surrounding the patient.
AXIM Biotech has developed an innovative chewing gum-based drug delivery system that controls the release of cannabinoids, enhances bioavailability, simplifies administration, and alleviates the many concerns with smoking the drug. Chewing gum also has other beneficial effects like de-stressing, memory improvement, neuroprotection, analgesic effects, and physical exercise effects, according to the company’s investor presentation.
The company plans to leverage this delivery technology to initially develop its CanChew Plus CBD Gum for IBS before relying on partnerships to shoulder the costs for future drugs. By doing so, the company will significantly reduce its research and development costs relative to larger companies like GW Pharmaceuticals that have spent upwards of $130 million in 2016 alone, according to regulatory filings.
AXIM Biotechnologies Inc. (OTCQB: AXIM) represents a unique opportunity within the cannabinoid-based bio-pharmaceutical space. With an innovative chewing gum-based delivery system and one of the broadest pipelines in the industry, the company provides investors with a diversified portfolio and opportunity to capitalize on multi-billion dollar end markets. The many near-term catalysts mean that investors may also want to take a look at the stock sooner rather than later.
For more information, visit the company’s website.