Weed Week: Budding Asian pot market could be flying at US$120m by 2026

• Asian marijuana market could hit $120 million by 2026
• US FDA considers cannabis regulations for food and supplements
• Avecho nabs approval for clinical trials of its CBD capsule for insomnia

 

Prohibition Partners former lead analyst Conor O’Brien has flagged that the Asian market could grow at least 10 times to around $120 million by 2026.

After Thailand legalised marijuana cultivation this year, and South Korea was the first country in East Asia to legalise pharmaceutical cannabis – leaving the door open for Japan, Taiwan and Malaysia to look at pharmaceutical applications too.

However, given conservative attitudes, O’Brien says Chinese recreational and medicinal use of cannabis will probably occur in neighbouring countries,

And over in the USA, the Food and Drug Administration (FDA) is planning to make recommendations on how to regulate the use of CBD in food and supplements, as per a Reuters report.

After weighing the evidence on the safety of CBDs, the FDA will decide within months how to regulate legal cannabis and whether that will require new agency rules or new legislation from Congress.

Essentially, the agency wants to know if CBD can be safely and regularly consumed over a long period or during pregnancy amid concerns about future fertility.

ASX WEED STOCKS

 

Only 8 companies were in the green, with 16 flat and 8 stocks in the red. 

 

Here are the ones with notable news:

 

AVECHO BIOTECHNOLOGY (ASX:AVE)

Last week the company received formal ethics approval of its pivotal Phase III clinical trial testing its oral CBD softgel capsule for insomnia.

The study will enrol 540 patients across three treatment groups to compare nightly CBD doses of 75 and 150 mg CBD with placebo over an 8 week dosing period. 

It’s the largest randomised, placebo controlled study being undertaken in Australia to support registration of cannabidiol as an over-the-counter medicine with the Therapeutic Goods Administration (TGA) and will produce relevant clinical evidence, which is applicable to support product registration with key global regulatory bodies including the TGA, the FDA and the EMEA.

”Everything we have learnt over the last 15 years of drug development has gone into this product and this study – and it’s a watershed moment for any biotechnology company and its investors to commence a Phase III trial,” CEO Dr Paul Gavin said.

“We are working with a trial design and host of respected professionals that will maximise the chance of success and eventual approval in multiple regions. 

“The TGA has never assessed CBD in a submission package for pharmaceutical approval – similarly, no regulatory agency in the world has approved CBD for this indication. 

“This has motivated the Avecho team to work strategically and methodically to design a Phase III trial that meets regulatory criteria in key markets. 

“It is hoped this will put us in a leading position for both regulatory approval and for negotiating significant commercial deals with leading international pharmaceutical companies.” 

 

INHALERX (ASX:IRX)

The cannabis drug developer has appointed iNGENū – the Aussie-based, full-service Contract Research Organisation (CRO) specialist – one of the world’s only cannabis & entheogen companies focusing entirely onclinical trials for entheogens, cannabinoid and psychedelic pharmaceuticals.

Avecho chairman Sean Williams told Stockhead iNGENū will be running point as the lead CRO for the planned Complex Regional Pain Syndrome (CRPS) and Panic Disorder (PD) clinical trials,

“Ingenu was selected on the basis of its capability and experience as a specialist cannabinoid CRO, which enabled it to develop and present an attractive tailored, time efficient and cost-effective approach to IRX’s clinical trial requirements,” chairman Sean Williams said.
iNGENū is one of the world’s only cannabis & entheogen specialised

“This approach also, very importantly, allowed Ingenu to present an offer to IRX which was substantially more attractive on a value for money basis than other tendered offers. 

“We look forward to working closely with Ingenu over the next 12-18 months as we complete our planned Phase 1 and 2 clinical trials for CRPS and Phase 2 PD clinical trials,” he added.

 

NEUROTECH INTERNATIONAL (ASX:NTI)

The company has successfully treated the first patient under the new Phase II/III NTIASD2 clinical trial for children with Autism Spectrum Disorder.

NTI164 is a proprietary drug formulation derived from a unique cannabis strain with low THC (M<0.3%) and a novel combination of cannabinoids.

The study seeks to confirm the safety and efficacy of NTI164 in a larger patient population under a double-blind, placebo-controlled clinical trial design; the results of which are expected to confirm the company’s earlier clinical trial, where patients continue to show improvement in their severity of illness after 32 weeks of daily oral treatment with NTI164, with minimal side-effects.

Neurotech also plans to conduct additional Phase I/II trials in Paediatric Autoimmune Neuropsychiatric Disorders Associated with Streptococcal Infections (PANDAS) and Paediatric Acute-Onset Neuropsychiatric Syndrome (PANS), collectively PANDAS/PANS, along with cerebral palsy during CY2023. 

 

MEDLAB CLINICAL (ASX:MDC)

The cannabis company has submitted a registration statement with the US Securities and Exchange Commission for a proposed US public offering of new securities.

The company has applied to add its securities to the Nasdaq Capital Market, listing under the ticker MDLB, while determined to continue trading on the ASX for its many local enthusiasts.

MDC expects net proceeds from the sale of shares being sold to equal roughly US$7m based on an assumed IPO price of US$4.45 per share unit.

 

AVE, IRX, NTI and MDC share prices today:

 

At Stockhead we tell it like it is. While Medlab Clinical is a Stockhead advertiser, it did not sponsor this article.