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Innocan Pharma (CSE: INNO) Positioned for Growth Following Success in Recent Pre-Clinical Trials

Innocan Pharma
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Innocan Pharma Corporation (CSE: INNO) (FSE: IP4), an Israel-based pharmaceutical company developing innovative CBD drug delivery platforms, made steady progress in 2022 with the company expanding into the veterinary field after promising results from its initial trials. Last August, Innocan reached a new milestone by reporting nearly 100% bioavailability of CBD using its LPT technology in a dog, which gives reason to believe the company’s veterinary segment will soon be able to reach the commercialization stage, paving a clear pathway to commercialize products developed for humans as well.

Building on this momentum, Innocan has started 2023 on the right foot. Last week, the company reported promising results from a compassionate care trial using an 11-year-old dog suffering from severe autoimmune mediated polyarthritis. After being treated with market-leading medications for this condition such as Glycoflex and even trying steroids and hydrotherapy, Lady, the dog, failed to show any improvements. Lady was then administered a liposomal CBD injection developed by Innocan, after which a significant health improvement was recorded lasting 5 weeks.

 These results demonstrate the long-lasting effect of CBD drug therapies developed by Innocan, and the company is well-positioned to leverage this success to bring its products to the market sooner than initially expected. Innocan was indeed one of the best-performing stocks on CSE in January but the company seems potentially undervalued due to a few reasons.

First, the expansion into the veterinary market has meaningfully increased the addressable market opportunity for the company and accelerated the pace at which the company is reaching the commercialization phase of its business. According to IBISWorld, the veterinary market was valued at more than $62 billion in the U.S. alone in 2022, and innovative drug developers stand a chance to quickly gain traction given the lack of treatments currently available for many of the common diseases killing pets worldwide. The company has already signed a consulting agreement with Benitz Consulting to obtain the necessary assistance to commercialize IP in the veterinary space and is moving steadfastly to monetize its technology.

Second, Innocan’s pre-IND meeting, the first formal meeting with the FDA, is expected to take place this year, which is a market-moving event in and of itself. This meeting will allow the company to explore pathways to bring its products to the market and discuss the requirements of its full IND submission in detail with regulators. A successful outcome from this meeting would likely lift Innocan shares higher as it highlights the potential market opportunity for the company.

Third, the pharma industry is flush with cash, which makes young, innovative pharma companies attractive acquisition or partnership targets. Global industry giants such as Pfizer, Inc. (PFE) and Merck & Co. (MRK) are on an acquisition spree as these companies try to consolidate their market position by investing in young pharmaceutical companies with promising developments. Innocan is still flying under the radar but could soon come into the spotlight as the company continues to report encouraging results from its clinical trials. If Innocan attracts the attention of a large-scale biotech company, the stock price is likely to take off, delivering handsome rewards for early investors.

In conclusion, Innocan Pharma is a disruptive pharmaceutical company with promising prospects that is yet to be discovered by many investors. The company’s expansion into new markets and the focus on commercializing its technology in the veterinary space are good enough reasons for investors to keep a close eye on the company. With multiple catalysts on the horizon, it might not be long before Innocan gains the attention of institutional investors. Investing in a pharmaceutical company before it reaches the commercialization stage can lead to market-beating returns, and Innocan seems a good bet from this front.

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