The Canadian cannabis stocks we’ve discovered are gaining a clinical trial advantage
SmallCapPower | June 26, 2019: There are many conflicting opinions with regards to the safety of using medicinal cannabis. The estimated 113 cannabinoids contained in cannabis plants offer varying medical purposes, however, most treatment options have not been effectively researched. Companies that have focused on the efficacy and safety of using medicinal cannabis have gained a strong advantage in helping to educate patients and professionals on the use of cannabis. Today we have identified four Canadian cannabis stocks that have focused on clinical studies to determine the potential medical benefits of cannabis.
*Share prices as at close June 24, 2019, data obtained from S&P Capital IQ
Tetra Bio-Pharma Inc. (TSXV:TBP) – $0.34
Tetra Bio-Pharma is a biopharmaceutical multifaceted corporation that focuses mainly on CBD drug discovery and development. The Company runs a clinical trial program that is used to bring new drugs and treatments to patients and healthcare providers. As well the Company’s subsidiary, Tetra Natural Health, develops and sells natural health, self-care and hemp energy drink products. On May 2, 2019, the Company announced it plans to conduct a clinical trial on the tolerability and potential efficacy of its PPP003 ophthalmic drug, which is used to treat indolent corneal ulcers in companion animals. The Company resumed its Phase 3 clinical program on April 9, 2019, for its clinical program for pain management of advanced cancer patients. The objective of the study is to assess the Health-Related Quality of Life. The study will also investigate Tetra’s new drug, which used to be called PPP-001.
- Market Cap: $62.0 Million
- YTD Return: -59.1%
- 90-Day Average Daily Volume (1,000s): 373
- 30-Day Average Daily Volume (1,000s): 535
CannTrust Holdings Inc. (TSX:TRST) – $6.81
CannTrust focuses on producing and delivering cannabis products in the Canadian market. The Company has a 60,000 sq. ft. facility in Vaughan Ontario that is used for its quality control laboratory, extraction, manufacturing and packing. Additionally, the Company owns and operates a 450,000 sq. ft. perpetual harvest facility in the Niagara region. This facility is expected to have an annual capacity of 50,000 kg. The Company has plans for a Phase 3 expansion, which is predicted to increase the annual capacity of the Niagara facility to 100,000 kg upon completion. With a patient-focused business model, CannTrust’s medical operations have over 2,500 active physicians that prescribe to its products, and more than 70,000 Canadian patients. On September 5, 2018, the Company partnered with McMaster University to conduct medical cannabis research on chronic pain. The Company partnered with Australia’s Gold Coast University Hospital on July 11, 2018, to perform a placebo-control clinical trial to see the efficacy of CannTrust’s CBD oil capsules in slowing the progression of ALS.
- Market Cap: $961.6 Million
- YTD Return: 3.7%
- 90-Day Average Daily Volume (1,000s): 1,951
- 30-Day Average Daily Volume (1,000s): 1,244
Aleafia Health Inc. (TSX:ALEF) – $1.07
Aleafia Health is a vertically-integrated cannabis health and wellness company. The Company operates in four main business units: 1) Cannabis Cultivation & Products; 2) Health & Wellness Clinics; 3) Cannabis Education and; 4) Consumer Experience with eCommerce. The Company owns three cultivation facilities that are comprised of: 1) Port Perry Facility, which is an indoor grow that is licensed and fully operational; 2) the Niagara Facility, which is a greenhouse in a plant-ready state that is waiting for a Health Canada cultivation license; and 3) the Paris Facility, which is a 25,000 sq. ft facility that is federally licensed for cultivation, processing and sale of medical and recreational cannabis. With the receival of its Standard Cultivation License at the Port Perry Facility on June 10, 2019, the Company’s licensed cultivation area grew from 22,000 sq. ft. to 314,000 sq. ft. On March 18, 2019, the Company announced results from its 4,000 medical cannabis patient study that observed employment and disability status among patients that use medical cannabis. This showed a slight net improvement in employment after starting medical cannabis treatments. The Company announced results on January 25, 2019, which showed that 45% of patients stop using benzodiazepine after trying the medical cannabis treatment. Benzodiazepine is used for sedatives and anti-anxiety medications.
- Market Cap: $294.0 Million
- YTD Return: -25.2%
- 90-Day Average Daily Volume (1,000s): 1,276
- 30-Day Average Daily Volume (1,000s): 824
Columbia Care Inc. (NEO:CCHW) – $7.72
Columbia Care is one of the biggest MSOs in terms of market cap in the medical cannabis industry, which focuses on cultivating, manufacturing and providing medical cannabis products and services. As of 2018, the Company owns 54 facilities and operates with 35 licenses in 15 jurisdictions in the U.S, EU and Puerto Rico. The Company’s current cultivation facilities allow for 730,000 sq. ft. of cultivation and potential to produce. This allows for 125,000 kg of annual flower. On May 14, 2019, the Company announced the start of its research study with Westmed Medical Group to test the safety and efficacy of precisely formulated cannabis-based medicines being used to treat rheumatologic patients. The Company announced a study with the Center for Discovery on November 14, 2018, to examine the use of cannabis-derived medicines to treating epilepsy.
- Market Cap: $1,668.0 Million
- YTD Return: -31.2%
- 90-Day Average Daily Volume (1,000s): 247
- 30-Day Average Daily Volume (1,000s): 143
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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