- Developing revolutionary injectable CBD delivery system
- Strategic partnership with Hebrew University to study Liposome Platform Technology
- Tie-up with Tel Aviv University company Ramot to look at treating coronavirus with CBD-loaded exosomes
- Over-the-counter topical CBD creams targeted for commercial sales in 2020
What InnoCan Pharma does:
The Israeli company is developing a revolutionary injectable CBD delivery system that facilitates targeted, controlled administration of cannabinoids into the bloodstream.
Very few active ingredients of CBD are absorbed into the body. At best, around 15% of CBD oil is absorbed when taken orally, but the average is closer to between 5% and 10%. The culprit being liver enzymes, which destroy over 80% of the essential components.
The group’s Liposome Platform Technology (LPT) is being developed in conjunction with the Hebrew University in Jerusalem by a team with serious experience in liposomal delivery systems. LPT can enable increased bioavailability, targeted towards a specific organ or body part, with precise time and dosage control.
InnoCan holds a globally exclusive license to commercialize the research results and products that stem from the technology. According to the company, LPT has the potential to become a licensing platform to large pharmaceutical companies either for CBD dosage or their own specific needs.
Meanwhile, in April 2020, InnoCan also announced a tie-up with Tel Aviv University company Ramot in a bid to combat the deadly global spread of coronavirus (COVID-19) by using cannabidiol (CBD) loaded exosomes.
In layman’s terms, exosomes are extracellular vesicles, crucial in cell–to-cell communication which are being explored as a means of drug delivery. Also, the small vesicles that are created when stem cells are multiplied can target and help repair damaged cells.
InnoCan also boasts a line of over-the-counter topical CBD creams that work for both pain relief and psoriasis, both of which are multibillion-dollar industries.
In addition, the firm markets a line of premium CBD-infused derma cosmetic products distributed throughout the UK and Ireland.
The company was the first Israeli firm to do an initial public offering (IPO) with a full prospectus on the Canadian Securities Exchange, making it somewhat of a pioneer in the financial world.
How is it doing:
InnoCan has certainly had a busy six months or so as it pushes to commercialize its unique technology.
On August 7, the company’s SHIR CBD Derma Cosmetic product line received the greenlight to be marketed in the European Union.
The company said its products had “successfully" passed safety assessment in accordance with European Union cosmetic regulation No 1223/2009, and also received a EU Cosmetic Product Safety Report for marketing in the European Union.
Hot on the heels of that news, on August 20, InnoCan inked a deal to distribute its CBD line of beauty and pharmaceutical products in Italy and Switzerland. The distribution agreement with Cloud 9 Switzerland LLC will see it sell InnoCan’s SHIR Beauty and Relief & Go lines in the two countries.
That deal in Europe came weeks after the company’s InnoCan Israel subsidiary signed a manufacturing and distribution agreement with Endless Sky Incorporated (ESI), a large-scale cannabis extraction company based in Calgary, Canada.
ESI will exclusively distribute Innocan’s CBD products in Canada and manufacture them at its Health Canada-licensed facility in Redvers, Saskatchewan. In exchange, ESI will pay InnoCan Israel a fee per product in addition to royalties based on net sales.
The 12-month deal is conditional on ESI receiving Health Canada approval by the end of the year, the company said.
A boost to those approval hopes came in July, when InnoCan revealed that its over-the-counter Relief & Go Pain Relief CBD spray product had received US Food and Drug Administration technical validation and approval to commence marketing.
The previous month the company had kicked off production of its Derma CBD line of commercial products in Portugal, with the patent-pending Relief & Go CBD Spray, which was developed by InnoCan’s chief technology officer, Nir Avram, first off the production line.
InnoCan's pain relief formulation contains a combination of Magnesium oil, Methyl salicylate, Menthol and CBD, administered with a simple dose of spray, roll-on or lotion. The Relief & GO Pain Relief spray is designed to target pain-related muscle and provide relief for joint pain.
On the research front, on October 16, InnoCan said that it had completed a cosmetic clinical study that showed a dramatic 90% to 95% reduction in facial skin wrinkles after a group of study participants used the company’s SHIR Premium CBD Facial Serum for a period of 28 days.
The company said a group of 20 volunteers applied SHIR InnoCan Pharma Facial Serum, which has 300 milligrams of cannabidiol, on a sustained basis twice a day for 28 days and saw very positive results. An overwhelmingly high percentage of volunteers saw a more even skin tone and a depigmenting effect after using the product.
Meanwhile, on October 12, InnoCan said it had achieved a “major milestone” in developing its unique CBD-loaded Liposome Platform Technology (LPT) for injectable CBD.
A study carried out on mice by the Hebrew University of Jerusalem, in Israel on InnoCan's CBD-loaded LPT showed a “prolonged release” of CBD into the blood for “at least three weeks after one administration.
In July, the firm announced a collaboration with Recipharm, a leading Contract Development and Manufacturing Organisation (CDMO) in Israel to synthesize and analyze CBD-loaded exosomes.
The move followed the company’s sponsored research agreement with Tel Aviv University company, Ramot to develop a novel, revolutionary approach to treat COVID-19.
InnoCan agreed to fund that research based on agreed milestones for a total amount worth around US$450,000 for the first stage. The developed product, which is expected to be administrated by inhalation, will be tested against a variety of lung infections.
On the financing front, in June, InnoCan closed a $5.1 million prospectus offering comprised of just over 28.4 million units priced at $0.18 per unit, consisting of one share and one warrant exercisable at $0.25 for a three-year period.
The proceeds were earmarked for research and development on its CBD drug delivery platforms as well as for sales and marketing expenses, operating costs and general corporate purposes.
InnoCan’s largest shareholder Tamar Innovest Limited purchased nearly 3.9 million units worth around $700,000 in the offering, giving it approximately 19.6% ownership of the company.
Posting 3Q 2020 results at the start of December, InnoCan noted that it ended the period with C$2.4 million in cash after a busy three months that saw the pharmaceutical firm get set to launch its CBD-based products.
The firm increased its research and development spending in 3Q 2020, with expenses totaling C$654,000 compared to C$149,000 in the year-ago quarter, attributable to new research agreements entered into during the nine-month period with Yissum Research Development Company and Ramot at Tel Aviv University, along with an increase in patent application expenses.
- Commercial sales for CBD consumer products
- Further distribution agreements with potential retailers both online and offline
- News on CBD-loaded exosomes research for COVID-19
- Further news of Liposome Platform Technology progress
What the broker says:
At the start of September, Mackie Research Capital Corporation's institutional sales group issued an updated Enterprise report on InnoCan.
The Enterprise report provides valuable insight into companies that embody value-add for investors, have distinguished themselves among their peers and are bringing innovative and creative ideas into action.
Mackie Research analyst Toby Ma highlighted the Israeli company’s potential clinical, licensing and commercial catalysts:
- Pre-clinical data of CLX-CBD loaded exosomes to treat COVID-19 is expected in 9 to 12 months
- InnoCan is looking to out-license CLX and the liposome product before Phase 1 trials
- Its CBD-based consumer health products are expected to be launched in several international markets in the fourth quarter of 2020
- The company is looking to sign more regional distribution agreements going forward
The Enterprise report was based upon general comments with no ratings and should not be construed to be a research report, InnoCan pointed out.
What the boss says:
In a statement accompanying the 3Q results in December, CEO Iris Binocovich called the quarter a “milestone” for the Israel-based company.
“After successfully completing our $5.1M financing, we have laid the groundwork for full commercialization of our CBD based products,” Binocovich told shareholders. “We are completing the manufacturing process in Europe and the USA and have received regulatory approvals for marketing in Europe and the USA.”