Monday, cannabis industry leader, GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) announced positive results from its first Phase 3 study of Epidiolex in the treatment of Dravet syndrome. Epidiolex already has orphan drug designation and Fast Track Designation from the FDA for this rare form of epilepsy. Currently there are no treatments approved in the U.S. The Active substance in Epidiolex, cannabidiol or CBD, has been the source of conversation and controversy for years.
Many doctors have even condemned it as a false therapy for things like cancer and, yes, epilepsy. But with the advent of strains like Charlotte’s Web, which have shown to drastically curb the affects of epilepsy, these Phase 3 results may confirm much of what many in the health community has already confirmed, which is that CBD’s can be a strong reactive therapy for debilitating diseases like this.
These findings could mean big things for the marijuana industry, as the ripple effect seems to have already begun. GW Pharma stock sprinted 120% to 84.71 in the stock market Monday, hitting a three-month high above 91, intra-day. The news also jump started other cannabis-related stocks like Insys Therapeutics Inc (NASDAQ:INSY), which rose 11% to 18.89, and the recently IPO’d Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), which increased to a six month high of $21.08; up 150%.
Like GW Pharma, Insys is also testing a CBD product in Dravet syndrome, and similarly has been granted an orphan-drug designation from the FDA. Zynerba is developing a form of CBD that can be applied through the skin. In a recent PR, ZYNE reported that in the first half of 2016, the Company expects to report final results from its ongoing Phase 1 single rising dose clinical trial, including results from 12 patients with epilepsy.
Other CBD Related Stocks Seeing More Attention From GW’s Findings:
Greengro Technologies Inc
Greengro Technologies Inc (OTCMKTS:GRNH) also acquired Greensticks, Inc.; a patent pending technology for an electronic vaporizer for Cannbidiol (CBD). Branded as a new way to medicate, Greensticks is a battery powered electronic vaporizer designed to look like an electronic cigarette. The cartridges are filled with 100% organic liquefied flowers and pharmaceutical grade glycol as found in asthma inhalers.
GRNH recently announced record-breaking 242.94% year-over-year sales growth through the first quarter of 2016. According to the company, this timely growth came as a result of new customers along with renewals and the ongoing expansion of the company’s product lines. Additionally, sales increased by 209.57% from the fourth quarter of 2015 to the first quarter of 2016. Along with many other marijuana stocks, GRNH shares increased by nearly 60% from open to high and closed the Monday session at its HOD of $0.349 on more than 5 times it’s average 30-day volume.
FBEC Worldwide Inc
Originally focused on providing hemp based energy drinks, FBEC has also spread its reach into the quality CBD marketplace through its distribution of Ma Brand CBD. Late last year the company signed a Joint Venture agreement with CBD Globe Distributors Ltd. in which FBEC will own 50.1% of the newly formed Joint Venture LLC and receive 50% of the net profit from its operations. According to CBD Globe, it has invested over $200,000 in production and development of the Ma brand itself and already has 10,000 units packaged and ready for sale. The CBD vaping product has a highly refined CBD oil made from hemp, grown in the United States.
Top UFC contender, Anthony “Rumble” Johnson, has endorsed the company’s hemp energy shot product. Furthermore, its most recent announcements have dealt heavily with revamping its share structure and curbing potential sources of future dilution. FBEC shares rose just over 25% from Monday’s open and closed at the high of day.
Medical Marijuana Inc
Medical Marijuana Inc (OTCMKTS:MJNA) saw very heavy volume on Monday with price increasing by a modest 7% from its previous close, Friday. The company announced at the beginning of March that its portfolio investment company, KannaLife Sciences, Inc. has received the necessary 2016 quota allotment from the U.S. DEA to import high-purity, pharmaceutical-grade cannabidiol into the U.S.
KannaLife is currently focused on the feasibility studies with Catalent Pharma to develop a cannabinoid-derived therapeutic agent for the treatment of two neurodegenerative diseases: Hepatic Encephalopathy and Chronic Traumatic Encephalopathy; forms of brain degradation in humans that can be due to things like head trauma.
Cannabis Science Inc
Cannabis Science Inc (OTCMKTS:CBIS) saw an incredible day on Monday as well. The stock increased from an opening price of $0.01 to a high of $0.0194. The stock ended the day, closing up just under 50%. The company is continuing testing and providing limited rollouts for its own CBD-based treatment products in California. The company has taken a strong stance to increase shareholder value.
In recent press Cannabis Science’s CEO announced that he will be gifting his own shares to shareholders in lieu of previously announced dividends. That date of record for shareholders has been extended to March 31, 2016.
The stock saw nearly 3 times its average 30-day volume on Monday fueled by excitement in the marijuana sector. Share prices rallied up more than 75%. In most of the recent press releases, the company has been focused on extinguishing the remainder of its convertible debt and as of early March, CANV management confirmed that 100% of the outstanding convertible promissory notes have been retired.
Following the acquisition of CanX and Canabine earlier this year, the company has taken a firm stance on efforts to develop synthetically-formulated CBD for use in drug development activities. In particular, they are looking to pursue approval of the FDA for drugs with specific indications utilizing cannabidiol as the active pharmaceutical ingredient. Board Chairman James A. McNulty has been an active contributor to biotechnology and health care related companies, including BioDelivery Sciences International, Inc. (BDSI), Hedgepath Pharmaceuticals, Inc. (HPPI), Accentia Biopharmaceuticals, Inc., and Biovest International, Inc. He is also a former shareholder of CanX, which brings this full circle.
There are obviously many more marijuana stocks that could be mentioned here but it would seem that the CBD centric companies like those mentioned, have begun to benefit from the latest ground breaking announcement that GW Pharma has just made with regard to a successful Phase 3 study. With such a late stage success, the hemp, CBD and cannabis space will be a topic of discussion in 2016.