Identifying The Next GW Pharma (Nasdaq: GWPH) Which Went from $8.50 to $132 In a Few Years



    With 28 states now legalized for medical marijuana, I believe the focus on Medical Marijuana space will begin to turn to the Cannabis Biotech’s.

    What will drive it, increasing access to investment in the space and big winner’s like GW Pharma have paved the way with approved cannabis therapies.

    And you can really win in this space given GW Pharma went from $8.50 just a few years ago to close at $132 today.

    We believe the Biotechs will be the BIG winners in the Medical MJ space and one we have come across tht caught our eys is InMed Pharmaceuticals (OTCQB: IMLFF), a biopharmaceutical company focused on identifying, developing and commercializing prescription drugs using non-THC cannabinoids. Currently, there are between 80-100 cannabinoids that have been isolated from cannabis that affect the body’s naturally-occurring cannabinoid receptors and are responsible for extensive physiologic effects while having minimal safety concerns.

    InMed is utilizing its proprietary bioinformatics program to identify the chemicals within the cannabis plant that interact with certain genes responsible for specific diseases. These newly identified cannabinoid drug candidates promise to significantly reduce side effects while optimizing therapeutic benefits.
    Biotech, Big Pharma & Wall Street are actively engaged in Cannabinoid Investment and R&D:

    • GW PharmaceuticalsNASDAQ: GWPH
      • $3.4B mkt cap (as of 11/14/16)
      • Raised over $700m from BoA, Goldman Sachs, Canaccord Genuity, Morgan Stanley
    • Zynerba Pharmaceuticals – NASDAQ: ZYNE
      • $130M mkt cap (as of 11/14/16)
      • $48m IPO through Piper Jaffray, Leerink , Oppenheimer & Canaccord Genuity
    • Bayer, Novartis, Otsuka and Abbvie, to name a few, are involved in this cannabinoid specialty sector.
    • 3 Cannabinoid products have been approved by U.S. or European regulatory agencies and they are:
      • Sativex™ (GW Pharma)
      • Marinol™ (Insys Therapeutics, ticker: INSY, $975M mkt cap)
      • Cesamet™ (Meda Pharma, Acquired by Mylan for $7.2B in August 2016)

    These are the three Key value drivers of InMed’s portfolio of assets:

    1. Proprietary computer-based drug/disease targeting program
    2. Drug Development
    3. Cannabinoid biosynthesis technology
    1. Proprietary computer-based drug/disease targeting program

    InMed is utilizing their novel bioinformatics program to identify which individual chemicals from the cannabis plant can be developed into targeted therapies for specific diseases and conditions. The advantages InMed’s system:

    • Generates new therapies both quickly and effectively- significant cost and time savings in drug discovery process
    • Allows InMed to research pharmacological responses of the (significantly under-researched) minor cannabinoids significantly for therapeutic benefits (Most Biotech’s are restricted/limited to researching the 2-or 3 most prevalent cannabinoids out of the 90+ available)
    • InMed’s system has already identified multiple therapies. InMed’s current drug development focus is on INM-750 & INM-085.
    1. Drug Development

    InMed has an extensive portfolio of assets in multi-billion dollar markets such as dermatology & ocular diseases. Their two lead therapies are:

    INM-750: Epidermolysis bullosa (EB) is a rare genetic disease characterized by extremely fragile skin that blisters or sheds upon the slightest friction, resulting in extensive open wounds that are slow to heal. INM-750 may be able to reverse EB as it may re-establish the epidermal/dermal junction by upregulation of specific keratins (keratins are proteins that play several roles in skin integrity and function).

    INM-085: Glaucoma is an eye disease that manifests as an increase in intraocular pressure which damages ocular nerves and leads to permanent vision loss. Limitations of current therapies include poor adherence and limited efficacy. InMed’s therapy addresses both of these issues as a once-a-day eye drop* with a dual MoA (Mechanism of Action).

    * InMed has developed a proprietary nano-particle hydrogel as the delivery system

    1. Cannabinoid biosynthesis technology

    The Company is developing a novel biosynthesis (fermentation) process to manufacture pharmaceutical-grade, naturally-occurring cannabinoid drugs in a controlled environment. This proprietary, high-yield process results in higher purity, faster production time and substantially reduced costs when compared to extracting individual cannabinoids from plant material., or when compared to chemical synthesis in a lab setting.

    GW Pharma has only identified 14 or so Cannabinoids to develop therapies with. GW uses an extraction methodology. Extraction of cannabinoids from plants has its challenges: Time, cost of harvesting cannabinoid plants coupled with Low extraction yields and high separation costs.  Not top mention with farmed organics inconsistent purity & specificity between the batches can require additional blending for final product

    The significance of this is InMed’s patent pending biosynthesis production results in pure pharmaceutical grade cannabinoids – any of the 90+ known naturally-occurring cannabinoid

    • Significant cost savings vs. existing crop extraction & purification methods (GW Pharma’s method)- Lowers Drug production cost!
    • Enhanced production, purification and QC from current chemical methods
    • Easier path for Scale-up and systems optimization
    • Access to minor cannabinoids that are currently economically unfeasible to develop into drugs