NanoSphere Health Sciences Inc. (CSE:NSHS, OTC:NSHSF) subsidiary’s cannabinoid delivery technology patent illustrates a significant market opportunity
SmallCapPower | July 24, 2018: NanoSphere Health Sciences LLC (CSE:NSHS, OTC:NSHSF) announced the award of the newest patent for its proprietary cannabinoid delivery and absorption technology. The patent itself, US Patent No. 10,028,919, covers the encapsulation of Cannabinoid compounds in phospholipid nanoparticles and their delivery method into the body.
With the addition of this patent, NanoSphere’s IP portfolio now covers the comprehensive production methodology for the NanoSphere Delivery SystemTM and its applications in the cannabis sector. The Company previously received a patent (U.S. Patent No. 9,925,149) for its core nanoparticle technology and its general applications to pharmaceuticals, nutraceuticals, and other biological agents. Together, these patents ensure that the Company has the exclusive right to produce and license phospholipid nanoparticles for the transportation of bioactive compounds into the body. The broad nature of the patents ensures high barriers to entry for any competition with the Company’s delivery system.
The NanoSphere Delivery SystemTM represents a possible evolution in novel methods to consume cannabinoids (THC & CBD) for medical and recreational purposes. The technology utilizes a research-proven method to enhance bioavailability, speed of action and consistency of dosage for cannabinoids and pharmaceuticals. Bioactive compounds such as THC and CBD are isolated in precisely-metered quantities and enveloped in protective membranes of phospholipids that allow for easy transport into the bloodstream, bypassing the liver. The phospholipid nanoparticles are able to cross bodily barriers, such as skin or membranes, that would normally block or significantly limit the bioavailability of active compounds trying to enter the body. Unencapsulated compounds would then normally have unpredictable and generally lower levels of cannabinoids in circulation. However, NanoSphere’s newly-patented delivery system ensures precise dosages of THC, CBD or other compounds to be administered and take effect much more quickly than unencapsulated compounds. The enhanced bioavailability results in 2-times to 8-times less of the active compound being needed to achieve the same desired effect.
Investment Highlights Continued:
We view the receipt of this patent as further evidence of NanoSphere’s value and ability to generate revenue in the near-term. The Company’s products are currently on sale in Colorado under the Evolve Formulas brand, with sales in California, Arizona and additional states to commence later this year. Nanosphere uses a licensing business model to partner with select manufacturers in target industries. Depending on the specific agreement, these partners produce and/or market Evolve Formulas products to legal markets across the U.S and Canada.
The Company currently has two Transdermal NanoSerum™ products available in the Colorado market – one with a THC dominant formula and the other with a CBD dominant formula. The CBD formulation also contains resveratrol – an ingredient found in grapes, which studies show has anti-aging properties.
The future product pipeline for Evolve Formulas includes intraoral, intranasal and vape cartridge applications for the NanoSphere Delivery System™. While there have been concerns about new regulations in Colorado surrounding intranasal marijuana products potentially being introduced next year, management has stated its belief that the Company is already likely to be compliant with any new product requirements based on its existing rigorous clinical testing regime. Furthermore, the Company’s expansion roadmap to Canada, California and additional states in the near future, ensures that its reliance on the Colorado market is limited.
NanoSphere is poised for major growth. As sales and licensing of the technology ramps up over the next several quarters, with the added benefit of broad patent protection, we will be watching the Company’s financial results closely. NanoSphere has already announced that its Q2/18 financials will report first sales, leading to the expectations of breakeven cashflows later this year. In our opinion, Nanosphere’s current position represents a compelling entry point to capture a stake in a ground-breaking technology.
UPCOMING CATALYSTS & MILESTONES
Q3/2018 – Q2 financial results with the beginning of revenue recognition
Q3/2018 – Sales to commence in California
Q4/2018 – Launch of Intra-Nasal and high potency THC products
Q4/2018 – Expected expansion to additional states and Canada
Q1/2019 – Expected expansion to additional states
Ubika Research/SmallCapPower has received compensation from Nanosphere Health Sciences Inc.(CSE:NSHS) to provide analyst research coverage. For full disclosure please visit here >>
To read our full disclosure, please click on the button below: