The phase IIa is underway right now, having kicked off in December 2016 at Yale Medical Center, and management expects to read out top line from the study at some point during the middle of this year. The pivotal should kick off shortly after (definitely before 2017 draws to a close), and the pathway is further shortened by the potential for Orphan Designation and Accelerated Approval based on the fact that these are already approved active ingredients.
Cash on hand post IPO comes in at around $14 million, which gives the company a runway through to near end 2018, so dilution isn’t a concern near term. If the Tourette’s program runs smoothly, Therapix could have its drug on the shelves (and remember, this is a market with practically no widely used treatments) in 2019.
Beyond the Tourette’s program, catalysts also derive from a mild cognitive impairment (MCI) program, which is built around the concept that ultra low doses of THC can serve to prevent and reverse cognitive decline. This seems counterintuitive, as long term cannabis use has long been associated with cognitive impairment, but there’s evidence in place to back up the suggestion (2), and Therapix BioSciences (NASDAQ:TRPX) is running with this evidence to try and take advantage of a quick route to a large market with practically no effective standard of care treatments.
This concept hit press recently (3), with the suggestion that cannabis use can be adopted by NFL players to help avoid chronic traumatic encephalopathy, a neurodegenerative condition associated with playing football (and the repeat trauma it causes). Cannabis use is banned in the NFL of course, but if a company can bring a pharmaceutical grade synthetic alternative to market, there could be a large potential demand waiting for it.
A proof of concept study (phase IIa, similar to the ongoing study discussed above in the Tourette’s program) should kick off during the second half of this year investigating a drug called THX-ULD01 in MCI. This puts the secondary program around twelve months behind the lead, but this gap could close because the company is now a NASDAQ list, and is likely to draw increased speculative attention as its programs mature.
To bring this all together, then, we’ve got a company that has been around long enough to be considered established but that is a fresh face on the NASDAQ. It’s taking a novel route to market with a lead Tourette’s asset; a route that could see it start collecting revenues on its product within the next twenty-four months. It’s well capitalized with a runway through end next year, and it’s got a secondary asset that promises to provide catalyst over the coming twelve months as it matures towards its own commercialization.
GW Pharmaceuticals PLC – ADR (NASDAQ:GWPH) and Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) have proven rewarding exposures in the large cap and the mid cap sectors of the cannabis space year to date, and with programs ongoing in their respective pharmaceutical indications, there’s a good chance both will continue to reward shareholders as 2017 matures. As a small cap alternative, however, and in a similar space and with a similar strategy as the two above mentioned, Therapix BioSciences (NASDAQ:TRPX) could also be a rewarding 2017 exposure.
Note: This article is written by Mark Collins and originally published at Market Exclusive.
Additional Links:
(1) https://www.royalqueenseeds.com/blog-medical-marijuana-as-treatment-for-tourettes–n64
(2) http://www.alzheimers.net/6-15-15-effects-of-medical-marijuana-on-alzheimers/
(3) http://observer.com/2016/06/can-weed-protect-your-brain-and-save-football/
