The biotech sector will be one of the greatest beneficiaries of the global cannabis movement and investors can find a lot of opportunities within this industry.
Although firms focused on developing cannabis-based treatments are some of the highest quality opportunities, several have recently been under pressure.
Israeli Biotech Firm Falls from Highs
In late March, Therapix Biosciences Ltd. (TRPX: Nasdaq) commenced trading on the Nasdaq exchange and the shares rallied almost 50% during its first day of trading. Since then, the shares have fallen more than 20% and we think this is a stock investors should be watching.
Therapix was founded in 2004 and listed on the Tel Aviv Stock Exchange (TASE) in early 2014. The company is a specialty clinical-stage pharmaceutical firm focused on creating and enhancing a portfolio of technologies and assets based on cannabinoid pharmaceuticals.
Therapix has initiated two internal drug development programs based on repurposing an FDA approved synthetic cannabinoid (dronabinol):
- THX-TS01 targeted to the treatment of Tourette Syndrome
- THX-ULD01 targeted to the high value and under-served market of mild cognitive impairments.
Therapix’s leading product candidate (THX-TSO) is created by using dronabinol (man-made form of cannabis) and Palmitoylethanolamide (PEA), a fatty acid that has a natural attraction to the GPR55 and GPR119 cannabinoid receptors. PEA does not bind to the primary endocannabinoid receptors, CB1 and CB2.
Biotech Stock Plunges on Positive Data
Shares of Corbus Pharmaceuticals (CRBP) plunged after the company announced positive topline data from its Phase 2 study evaluating Anabasum for the treatment of cystic fibrosis. The shares initially moved higher but then sank lower after its FDA results were reported to be not as positive as the company led investors to believe.
The Street said, “the Corbus drug failed to improve lung function compared to a placebo. Overall respiratory symptoms, measured by a cystic fibrosis patient questionnaire, also showed no difference between anabasum and placebo. These were the two most important, prospectively defined efficacy endpoints measured in the Corbus phase II study. Both came back zero. No benefit.”
The article said Corbus selected positive results from subsets of patients using endpoints included in the original design of the study. It also said the 75% reported reduction in acute pulmonary exacerbations is not even impressive due to the limited number of results of this nature.
credit: 420intel.com
