InnoCan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) stock reached a peak on the Canadian Stock Exchange in September 2021, rising about 300% from its IPO price. However, the stock is down 40% this year as capital markets continue to suffer from macroeconomic headwinds. InnoCan stock has nonetheless exhibited some strength of late but the best is yet to come with many promising developments on the horizon.
InnoCan Pharma is a specialty pharmaceutical company based in Israel that pioneered CBD-Pharma delivery technologies. The company develops solutions that combine cannabinoids (CBD) unique properties with other pharmaceutical chemicals delivered via smart delivery systems to treat CNS cell damage, as well as muscle and rheumatic pain. The company is at the forefront of a revolutionary drug delivery market that aims to address the growing need for less painful and more effective drug delivery methods. InnoCan's major goal is to address the low bioavailability of CBD products with its LPT and exosome drug delivery platforms, which the company believes are more effective and have the potential to improve bioavailability performance.
The company is revolutionizing the cannabinoid treatment market and has numerous medication delivery platforms that, once commercialized, have the potential to generate significant value for investors. This is shown in the company's most recent quarter, which demonstrates InnoCan’s ongoing efforts toward growth and stability.
InnoCan announced strong financial results for the quarter ending March 31, 2022, with revenue of $0.26 million in Q1 2022 compared to $0.19 million in 2021, and a 600% increase from Q1-21. The net loss was $0.7 million, compared to a net loss of $4.8 million in Q1-21, representing an almost 85% year-on-year improvement. The operating loss (excluding financing expenses or income) was $1.8 million, a 30% drop year on year. Furthermore, at the end of Q1-22, the cash balance stood at $9.5 million, a 215% YoY increase.
Drug pipeline and R&D efforts
InnoCan's primary research focus is on LPT CBD-loaded liposomes, with a focus on increasing CBD bioavailability in the body, which currently ranges between 6% and 35%. This approach will result in long-term therapeutic effects because it enables precise and controlled dosing as well as a predictable release of CBD into the bloodstream. Initially intended for human usage, the company observed promising results in the treatment of a range of ailments in dogs as well. Last year, the company conducted a series of animal trials that demonstrated enhanced pharmacokinetic (PK) performance, confirming that InnoCan's strategy of making CBD available to humans and animals for an extended period of time is feasible with a single dosage.
InnoCan was able to focus on veterinary medicine commercialization due to promising findings in the treatment of several disorders in dogs. The company recently revealed encouraging findings from preclinical research employing LPT to treat epileptic seizures in dogs. Epilepsy is a chronic brain illness marked by unanticipated and repeated seizures. A 9-year-old dog with drug-resistant refractory idiopathic epilepsy was treated with LPT injections in this trial. The dog received several injections of the LPT drug, with a 4-week interval between injections, and the results showed that the frequency and intensity of the dog's epileptic seizures had decreased significantly since the last LPT injection on April 25, and the dog has not had any seizures in over 10 weeks. InnoCan also reported a favorable outcome from its liposomal-CBD formulation (LPT) therapy for a dog with hip and elbow osteoarthritis earlier this year. This is a massive step forward for the company as it seeks to market its revolutionary technology.
Once InnoCan begins licensing and begins monetizing its technology, the company will gain a first-mover advantage in the $52 billion veterinary services market. This new industry has promising economic prospects, and research in this sector is gaining traction. Furthermore, the favorable outcomes associated with the use of CBD medicines to treat severe animal ailments have paved the way for many LPT therapeutic possibilities. The LPT platform's medical use for both animals and humans is a huge step forward.
Additionally, InnoCan is working on CBD-infused cosmetics and body care products, as well as topical compositions for the treatment of diabetes symptoms and multiple compositions including cannabis for the treatment of diabetic-related disorders. InnoCan has two dermatological cosmetics lines that have already acquired trademark approval: Synny and Shir which are available in Europe as well as in Canada. On August 8, the company announced the filing of a new patent application (PCT) titled 'compositions for treatment of hair loss,' which can be used topically on the skin or scalp to treat and prevent hair loss. This application contributes significantly to InnoCan's continuing expansion of its 14-patent portfolio.
This year, the company achieved a significant milestone by completing the physicochemical characterization of its CBD Liposome medicinal product, which is a critical component of the FDA application process. Recently, the company announced the appointment of Nissim Vasilevski as an Analytical Chemist to help speed the key development and validation of InnoCan's LPT product line to reach human clinical trials and submit to the US Food and Drug Administration (FDA).
InnoCan has an exclusive worldwide licensing deal with Yissum, the commercial arm of The Hebrew University of Jerusalem, to develop an LPT drug delivery platform. InnoCan will be able to continue its research and development projects with Yissum's assistance in order to generate long-lasting significant levels of CBD in the body, with effective and ongoing therapeutic benefits.
The company is also working with Ramot, Tel Aviv University's Technology Transfer Company, on a game-changing exosome-based technology that could aid in the recovery of infected lung cells. This technique, which will be given by inhalation, will use CBD to target both CNS indications and Covid-19.
CBD is effective in treating a wide range of medical conditions which highlights the possibility of expansion of CBD in the medical and healthcare industries. Several successful research trials undertaken by InnoCan as well as the growing need for CBD in healthcare indicate that the company has the potential to reward investors handsomely.