Stockhouse | April 26, 2019
An innovative product development company with a patented skin delivery technology appears to be making major breakthroughs in the topical and transdermal cannabis space.
On April 16, 2019, Ovation Science Inc. (C.OVAT, Forum) announced the launch of its new topical skincare product line infused with hemp-derived CBD called ARLO Beauty. Also reported in the press release, “Ovation has made the strategic decision to enter into the CBD marketplace as federal restrictions on CBD products in the US have been lifted and consumer acceptance and interest in CBD products grows exponentially. The research firm Jefferies, recently estimated that the CBD skincare market will grow to $25 billion globally in the next decade. They further indicated that online searches for CBD beauty have grown by 370 percent since the beginning of the year.”
Ovation has the ability to roll out its own line of non-dispensary products in the US and both dispensary and non-dispensary products in other countries where cannabis is approved.
Ovation is a vertically-integrated, debt-free cannabis company focused on scientific research and development that is poised and positioned to develop and deliver state-of-the-art technology for enhanced delivery to the skin.
The Company, backed by over 20 years of R&D, says it’s now primed and ready to capitalize on the growth of the exploding cannabis market with its patented skin delivery technology that’s disrupting the topical cannabis industry with its advanced science. Ovation says it will soon be providing its “pharmaceutical-grade technology to its global licensees resulting in high-quality, efficacious topical and transdermal products for consumers”.
Stockhouse Editorial recently asked President, CEO and Director Terry Howlett to delve deeper into the new product launchings and find out more about what it means for the future of the Company in the nascent medicinal cannabis space.
SH: So, Terry, can we start off with a little background history about yourself and your company, Ovation Science, and the company’s targeted growth trajectory?
TH: My background includes over 30 years in the skincare and dermatology drug development business and public markets. In 1999, I started a company which had a very unique drug delivery system called Invisicare®. Over the past 20 years we have perfected this technology so that it has multiple benefits and developed a large pipeline of products, mostly in the dermatology space and were granted patents in 11 countries around the world. Just over three years ago we were approached to develop cannabis topical and transdermal products with Invisicare® and that’s how it all started. We formed a subsidiary called Ovation Science and started the product development process using the knowledge and tools that we had from our pharmaceutical development. In March of 2018 we split Ovation Science completely from the parent company, purchasing all the rights to the technology and products in the cannabis space. This is an exciting time for Ovation Science as we see the great response, we are getting from consumers using our products that are now on the market in the US. Our strategy is to leverage the positive outcomes from the US farm bill; allowing hemp-derived CBD products to be sold in the USA, as well as partnering with key cannabis producers / marketers in the US, Canada and globally to bring marijuana-based topical and transdermal products to the marketplace where approved.
SH: Now to the latest big news – Ovation’s new topical anti-aging skincare product line infused with CBD called ARLO Beauty. Can you walk us though the new product launch?
TH: Yes, we are very excited as we just announced that we are launching our own skincare line called ARLO Beauty. ARLO Beauty is an anti-aging product line that will initially have 4 products: a day cream, night cream, eye cream and hand & body lotion; with more to come later this year. All these products are powered by our Invisicare® technology so not only are they patent protected but they have many benefits besides their anti-aging and moisturizing abilities; they do not rub or wash-off, they provide a barrier to the skin that protects your skin’s natural moisture while still allowing your skin to breathe and they have superior delivery of the ingredients to your skin because its delivered by our Invisicare® technology.
SH: I think it’s safe to say Ovation has been busy in the past couple of months. In February the Company’s licensee in Nevada introduced a Recreational Transdermal Cream under their BASKiN GLOW label. What can you tell us about this innovative new offering?
TH: The one thing we hear a lot when we tell people we are in the cannabis space is that they don’t like to smoke and they are afraid to try an edible because they don’t know how long it will take to work; so they would never use it because they thought they didn’t have any other choices. In response we created a high-potency, fast-acting THC dominant transdermal cream. We believe this is the first recreational cannabis product in the world. It has been formulated to quickly deliver a high-dose of THC transdermally which means into the blood stream. This new product is marketed and distributed in the USA by Cannabiniers under the name BASKiN GLOW. BASKiN GLOW contains 500 milligrams of THC and 50 milligrams of CBD in each 59ml jar and it is having a great response in Nevada and is just being introduced this month into California. This new product compliments the 3 other BASKiN topical and transdermal products with CBD that are already in the market in the U.S.
SH: Your investors deck mentions new product developments including synthetic cannabis, and animal health. Can you offer some details on these advancements?
TH: Sure. I mentioned earlier we launched ARLO Beauty with four products. More to come on this product line soon, stay tuned. The synthetic and animal health products are future developments. We know our technology can deliver drugs better than other products on the market that we tested, so we know that the next logical step is to work with a pharmaceutical company that is looking for the best delivery for their FDA or Health Canada approved “pharmaceutical” cannabis product. Animal health is also a big potential market for Ovation. Dogs and cats and other animals need topical products, whether it’s for a skin rash, itch or for anxiety. Our technology has application in the animal health market, and we are currently looking for a partner to proceed with us.
SH: The recent lifting of U.S. federal restrictions on CBD products under the 2018 Farm Act has been called “a real game-changer” for your industry. In your opinion, how much of one for your company?
TH: The Farm Act is not only a game-changer for our industry but for the whole population. CBD is a non-psychoactive component usually derived from hemp. The diverse medicinal value of this cannabinoid is being proven every day as more research gets completed. It will help people who have not found relief from pharmaceuticals or who are looking for an alternative. It also opens up the whole “cosmeceutical” market in the US. There are benefits that CBD brings to the skin and that’s why we have incorporated CBD into all our ARLO Beauty products.
SH: Can you update us on your new ‘Dermatology Advisory Board’ and what they will bring to the Company moving forward?
TH: Our staff has over 75 years of pharmaceutical, dermatology and drug delivery and product development experience. We are “all about the science”. We have been closely associated with an international dermatology medical education company based out of Vancouver, Canada and we have just entered into an agreement with them to act as the Company’s Medical Dermatology Advisory Board for cannabis formulated products. The objective of the Medical Dermatology Advisory Board is to provide guidance, along with clinical, scientific, research and strategic advice to the Company as we continue to advance our topical and transdermal cannabis product development. The Advisory Board is comprised of top dermatologists from the US, Canada and internationally. It will allow Ovation to reinforce the science behind our product lines by relying on this international team of outstanding experts in dermatology as well as increasing our R&D into dermatology-focused conditions in order to maintain and support the Company’s advantage in the topical cannabis market globally.
SH: As medicinal and recreational cannabis gains more and more global acceptance, how do you see your company as a first-mover within the current marketplace status quo and, if so, how do you build a competitive advantage for Ovation Science?
TH: Our value proposition is all about our science. We like to say, “We have formulations not just recipes.” This is our key differentiator in the marketplace where many topicals just have nothing to back them up; and our products work, they work really well. We have taken this competitive advantage and are leveraging it. We actually have a two-pronged business strategy. First, we are introducing our own products into the US marketplace; and not just 1 but eventually 7 in our beauty line. We know we are ahead of the curve as far as these products go, giving us a head start in many markets. We also license out our formulations, so we are partnering with cannabis companies that have the infrastructure and distribution to go globally. We think partnerships are key for global expansion and first-mover advantage.
SH: And finally, Terry, can you update us on any new product offerings or big announcements that Ovation has coming down the pipeline?
TH: I don’t want to reveal all the good things we have in the pipeline, but I will say that there is a lot more to come. We have over 25 cannabis products fully-developed and we are now working with our Medical Dermatology Advisory Board to develop our product development and clinical research strategies. Suffice it to say we are just getting started!
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