Thanks to growing acceptance of cannabis – including Canada’s legalization in October 2018, further U.S. state approval, and growing interest from corporate America – the global market is expected to grow from $7.06 billion in 2016 to $146.4 billion by 2025, according to Grand View Research Inc.
Expanding adoption of cannabis in medical applications such as cancer, mental disorders, and chronic pain is expected to propel revenue growth even more. As millions of people all over the world look to embrace its medicinal properties, marijuana companies are quickly gaining the attention of cannabis investors.
As a result, several companies are experiencing sizable growth and opportunities, including Intec Pharma Ltd. (NTEC).
Intec Pharma Ltd. (NTEC)
Just this month, the company announced the dosing of the first patient in a Phase 1 pharmacokinetic study of AP-THC, its proprietary Accordion Pill platform containing synthetic tetrahydrocannabinol (THC), one of the primary cannabinoids contained in cannabis.
"We are very pleased to be advancing our medical cannabinoid development program as we believe the Accordion Pill's gastric retentive technology is ideally suited to extend the absorption phase of THC, with the goal of a slower rate of rise and more consistent drug plasma levels after oral delivery,” said Jeffrey A. Meckler, Vice Chairman and CEO.
“We continue to be enthusiastic about the potential for this program, especially as the U.S. Food and Drug Administration's recent approval of a cannabinoid product has demonstrated the Agency's growing recognition of the importance of cannabinoid therapeutics. Given the known analgesic properties of cannabinoids, we expect our AP-cannabinoids will be applicable to a variety of pain indications,"
However, it’s not just the cannabis angle that has us excited.
The company is currently conducting a late stage trial for its long-lasting pill to treat Parkinson’s disease, and expects to start seeing revenue on it this year. We’re encouraged after Phase II trials showed a 45% reduction in “daily off time”, which gave patients more than two extra hours a day of movement.
Assuming a 10% market share, Meckler noted, "We have a drug that is worth more than $300 million a year."
The Cheap Investor first recommended shares of NTEC in July 2018 at $4.20 a share. It hit a high of $8.78 for a potential 107% win in just six months.
The best part – we have similar opportunities for the next issue of The Cheap Investor. For more information, click here.