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The biotech sector differs from other sectors of the market in the sense that it is the only industry where earnings are not the most important event for companies.
Unlike other sectors, the biotech sector trades on FDA results, not earnings; and favorable results can serve as a major catalyst for the company and send the price of the company’s stock considerably higher.
Biotech Beneficiaries
The biotech sector will be one of the greatest beneficiaries of the legal cannabis movement and there are only a few publicly traded biotech companies that are focused on developing treatments from the cannabis plan.
One such company is AXIM Biotechnologies (AXIM) and we are monitoring the company closely after it recently saw a significant increase it trading volume.
Last week, we heard AXIM CEO George E. Anastassov, MD, DDS, MBA, speak at the The MoneyShow Dallas about the value of cannabinoids and hemp derivatives. He discussed how AXIM Biotech is using natural and synthetic cannabinoids in its pipeline of pharmaceutical, nutraceutical, consumer and alternative energy products.
We found the presentation to be quite interesting as research suggests that cannabis can be an effective substitute for opioids. We find AXIM to be an interesting opportunity since the market for pain-related medicines is massive and patients continue to look for alternative treatments to opioids.
A Mission to Cure
AXIM’s mission is to develop treatments to illnesses that currently do not have an approved treatment or cure. Currently, there are 15 conditions identified by AXIM including: multiple sclerosis, spasticity, pain, Parkinson’s disease, Alzheimer’s disease/dementia, ADHD (attention deficit hyperactivity disorder), psychosis, PTSD, autism, RLS (restless leg syndrome), glaucoma, IBD, IBS, and Crohn’s disease.
We believe that AXIM could capitalize on this huge market through its pipeline of products that are in various stages of clinical and preclinical trials.
The price of drugs treatments continues to increase dramatically on a year-over-year basis and patients are always looking for new treatments. As the market continues to develop, we expect to see demand increase incrementally which will lead significant growth for AXIM.
Positioned for Success
In May 2015, Medical Marijuana’s joint venture, CanChew Biotechnologies, was issued the world’s first patent on cannabinoid controlled-release chewing gum.
AXIM Biotechnologies entered into an exclusive agreement to bring a new medical product to the market, MedChew RX. AXIM has access to intellectual property that will innovate the way that cannabis-based medicines are manufactured and taken by patients.
By analyzing the illnesses AXIM Biotech is focused on we determined that the company is in a good position to capitalize on several market opportunities through MedChew Rx.
MedChew Rx is currently being studied on several indications including, multiple sclerosis/pain spasticity, Parkinson’s disease, dementia, restless leg syndrome, Crohn’s disease, and psychosis.
The company recently secured the funding it needs for MedChew Rx to conduct Phase 1 & 2 Clinical trials as well as preclinical trials for numerous indications (pain and spasticity in MS, IBS, psoriasis and eczema, drug-related psychosis, early psychosis, glaucoma, etc.).
A Deep Pipeline of Products Leaves Us Favorable
We are especially favorable on AXIM after listening to the company’s presentation last week and learning more about the company’s deep pipeline of products. Besides for MedChew Rx, the company and has another exciting patent-pending cannabis innovation in clinical trials called AX-1602.
The product is the first of its kind as AX-1602 contains CBG (cannabigerol) and other cannabinoids. AXIM has been developing this treatment for patients who suffer from psoriasis and atopic dermatitis.
We are favorable on AXIM Biotechnologies and view the shares as an attractive investment at current levels. AXIM has a compelling valuation at this time and we view the risk-reward scenario as attractive at current levels.
As the company continues to execute on its initiatives, awareness for the company as well as it products will grow and we believe the market has not caught up with the company’s true value.
Important Investor Disclosures
This article was produced by StoneBridge Partners LLC. All information relied upon for the above report is publicly available via various research resources, including third-party sources we consider reliable, but we do not guarantee that any of such information is accurate or complete. StoneBridge Partners will often receive or expect to receive compensation from the subject companies. If StoneBridge Partners does receive compensation, the relationship and amount of compensation will be disclosed in our Terms and Conditions.
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