Following Trump’s recent announcement to reduce opioid addiction, it’s logical to wonder when Big Pharma may commit to developing cannabis-based pain alternatives. If they do, will they develop their own R&D, or buy their way into the market?
Given the risks and costs involved with starting up in the cannabis industry, M&A may be the favored route. Activity has been strong, with M&A transactions hitting $59.3 billion in 2015. Some of the companies involved include CannaRoyalty (OTC: CNNRF), Aphria (OTC: APHQF), Maricann Group (CSE: MARI) and Aurora Cannabis (OTC: ACBFF).
In August, Aphria announced an $11.5 million investment in Scientus Pharma, a biopharma firm researching cannabinoids. In the same month, Maricann purchased NanoLeaf Technologies, known for a standardized dose soft gel capsule for CBD-based pharmaceutical Vesisob, co-developed with Vesifact. In September, Aurora Cannabis bought Hempco.
One company that appears to look for a suitor is Vancouver-based cannabis biopharmaceutical InMed Pharmaceuticals Inc (CSE: IN) (OTC: IMLFF).
InMed has a proprietary cannabinoid biosynthesis process. Biosynthesis mimics a plant’s cannabinoid-creation process to create pure cannabinoids free of the impurities often found in extraction. With the value of the CBD market in the U.S expected to hit $2.1 billion by 2020, InMed feels its biosynthesis intellectual property value could be substantial.
The firm is a pre-clinical stage company developing novel therapies through R&D into the pharmacology of cannabinoids.
InMed stock traded up 12% today to $0.45. It’s market cap $57.37million.