Canopy Growth Corporation (TSE:WEED) files patents for use of cannabis in sleep therapies and related nervous system disorders
SmallCapPower | September 28, 2017: Canopy Growth Corporation (TSX: WEED) Wednesday announced that its research and development subsidiary, Canopy Health Innovations, filed nine provisional patents in the U.S. pertaining to the application of cannabis in sleep and related nervous system disorders. Going forward, Canopy Growth plans to selectively file patents as it progresses on the drug development in other jurisdictions including Canada. Sleep therapies are a key opportunity for Canopy Health and its parent company Canopy Growth, which is advancing research on the same through collaboration with academic researchers and clinicians, and working with regulators in jurisdictions to develop and register these innovative products. Sleep disorders remain severely undertreated and may be the underlying cause or lead to dangerous psychiatric disorders.
Bruce Linton, Chairman & CEO of Canopy Growth, said, “The cannabis industry is an industry with centuries of anecdotal evidence, but limited in deep and credible scientific research. By enabling world-class research, we are confident that we can contribute to an increased understanding of cannabis as an effective and safe method of treatment and create products that will improve lives. Sleep presents a first opportunity for Canopy Health to advance in this direction, with more soon to follow.”
Canopy Health also announced that it has closed additional funding, bringing the total funds raised to $15.8 million for advancing the R&D activities. New and existing shareholders contributed to the offering, including $4 million from Canopy Growth.
In other news, Canopy Growth Thursday said it has signed a definitive license agreement with Skinvisible Pharmaceuticals, Inc. to develop topical hemp-based products that will be launched by Canopy Hemp Corporation in Canada. The agreement also includes potential cannabis-based topical products if regulatory approval is received.
Post the announcement, shares of Canopy Growth rose nearly 2% to close at $10.77 on Wednesday. In terms of valuation, Canopy Growth trades at a price to TTM sales multiple of 37.77x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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