It is no secret that the global cannabidiol ‘CBD’ market is booming. Valued at USD 2.8 billion in 2020, Grand View Research projects the market will grow at a CAGR of 21.2% from 2021 to 2028. Those kinds of CAGRs are reserved for very few markets.
One segment of the CBD market that investors are particularly focused on is pharmaceutical applications of cannabinoids. The pharmaceuticals segment accounted for 42.8% of the CBD market in 2020 making it by far the largest segment. It is also the segment anticipated to grow at the fastest rate over the next decade.
An increase in clinical trials to study the impact of CBD on certain health conditions is anticipated to drive the demand in the forthcoming years. Clinical trials and patents are what drive price appreciation in the pharmaceutical markets. Several growing CBD pharma companies have released key announcements over the past 30 days.
For instance, SciSparc Ltd. (NASDAQ: SPRC) a clinical-stage biotechnology pharmaceutical company announced the issuance of U.S. patent No. 11,207,290. for ‘Pharmaceutical compositions comprising cannabinoids and N-acylethanolamines, and methods for their use in preventing and treating a variety of cannabinoid-treatable conditions.’ SPRC has received the same patent in Australia and Japan as well.
This is SPRC’s fourth U.S. patent for proprietary compounds and therapies primarily targeted for treating disorders of the central nervous system such as Tourette Syndrome, Sleep Apnea, Autism Spectrum Disorder, Pain and Epilepsy.
Recently, Aegis Capital Corp. issued a ‘buy’ rating for the company and a $20 price target.
This could be based on the company’s loaded clinical trial pipeline. Its drug candidates include; SCI-110 for the treatment of Tourette Syndrome (TS) and Obstructive Sleep Apnea, SCI-160 for the treatment of pain, and SCI-210 for the treatment of Epilepsy and Autism Spectrum Disorder (ASD)
SCI-110 is SPRC’s lead candidate and the company has already set in place supply chain infrastructure for the manufacturing and delivery of the drug.
Another clinical-stage CBD pharma company, Lexaria Bioscience Corp. (NASDAQ: LEXX) updated investors on its upcoming DehydraTECH-CBD human hypertension study HYPER-H21-4. The company received Independent Review Board (“IRB”) approval for the six-week study, which is entirely funded through the existing cash resources and planned to include 60 volunteers, aged 45 to 70, using three 150 mg doses of DehydraTECH-CBD daily for the duration of the study.
The use of DehydraTECH-CBD is aimed to treat hypertension and perhaps other forms of cardiovascular disease. This will be the most comprehensive undertaken by Lexaria who stated in the recent press release; “The hypertension market is valued at $28 billion per year and is expected to continue growing as one of the world’s top health problems and as a subset of the larger heart disease market.”
Hypertension isn’t the only massive market CBD drugmakers are pursuing, the estimated cost of hospitalizations in individuals with Sarcopenia is estimated at $40.4 billion and the mortality rate of older adults with Sarcopenia is 41% higher than those without the condition.
This week, MyMD Pharmaceuticals (NASDAQ: MYMD) was awarded U.S. Patent 11,219,620 B2, titled “Method of Treating Sarcopenia.” The patent will be issued on January 11, 2022.
The company is focused on delaying aging and believes that there are no FDA-approved drugs for treating aging disorders and extending healthy lifespan in humans, a market expected to be at least $600 billion by 2025 according to a major investment bank. MyMD holds three patents for its synthetic cannabidiol (CBD) derivative Supera-CBD. An additional 29 patent applications are pending worldwide.
PAO Group, Inc. (OTCMKTS: PAOG) last year, acquired IP derived through research into CBD extracted in association with a patented extraction method( U.S. Patent No. 9,199,960). PAOG is developing both pharmaceutical and nutraceutical treatments for humans based on this intellectual property. Thursday, it confirmed the development of a line of CBD nutraceutical products for Puration, Inc. (OTCMKTS: PURA) is underway.
PURA is focused on the development of a hemp business cooperative under the brand name Farmersville Hemp.
Growth by companies like SPRC, LEXX, MYMD, PAOG and PURA will be fueled by not only market demand, but pharmaceutical-grade suppliers like MediPharm Labs Corp. (OTCMKTS: MEDIF) pharmaceutical-quality cannabis concentrate manufacturer utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms, was recently awarded ‘best CBD brand of the year’ by Kind Magazine. Kind Magazine is published across Canada and distributed in cannabis retail stores. The Kind Awards were determined by a panel of 235 frontline cannabis retail staff.
MEDIF also announced Wednesday it has finalized all payments required under its 2020 $41 million unsecured convertible debt. Which is music to the ears of investors.
This sponsored article is part of an investor education program. Please make sure to read our full disclaimer at: https://topnewsguide.com/disclaimer