InnoCan Pharma Corporation reported strong revenue growth for the first quarter ended March 31, 2022, demonstrating the favorable operating conditions enjoyed by the company once again. InnoCan Pharma is a pharmaceutical technology company and the pioneer in CBD-Pharma delivery systems. The performance in the first quarter shows the effectiveness of the company’s continuous efforts toward achieving growth and stability. InnoCan reported revenue of $0.26 million in Q1 2022 compared to $0.19 million for the full year of 2021, and a 600% increase from Q1 2021. The net loss was $0.7 million in the quarter, compared to a net loss of $4.8 million in Q1 2021, an improvement of approximately 85% year-over-year. Operating loss (excluding finance expenses or income) came to $1.8 million, again an improvement of approximately 30% in comparison to the previous year. The cash balance at the end of Q1 stood at $9.5 million, a 215% increase YoY.
InnoCan is focused on the development of innovative CBD delivery methodologies, including the research and development of CBD-loaded exosomes (CLX) and CBD-loaded liposomes, as well as the commercialization and sale of branded CBD integrated pharmaceutical and topical treatment products, in response to the growing demand for less painful and more effective drug delivery technologies. InnoCan’s primary research focus is LPT CBD-loaded liposomes as it provides precise and controlled dosing as well as a predictable release of CBD into the bloodstream.
The company has signed an exclusive worldwide licensing deal with Yissum, the commercial arm of The Hebrew University of Jerusalem, to develop a CBD drug delivery platform based on a novel controlled-release liposome that will be administered via injection. The collaboration with Yissum will help InnoCan continue its research on its LPT platform while reducing the amount of external financing required. This ongoing investment in CBD encapsulated in liposomes research and development aims to improve CBD bioavailability in the body, which the company believes will result in significantly more effective and long-term therapeutic benefits. The bioavailability of existing drugs via vaping/smoking or oral administration procedures currently ranges from 6% to 35%. However, InnoCan’s dedicated research began to show better results in 2021. The company conducted a series of animal trials with its CBD-loaded liposome technology (LPT) last year, and the results showed that the pharmacokinetic (PK), a measure of drug efficacy, in animals was identical to that in a previous small animal study. This proves that InnoCan’s strategy to make CBD available to humans and animals for an extended period is possible. This year, the company hit a major milestone when it completed the physicochemical characterization of its CBD Liposome drug product, which is an important part of the FDA application package.
Initially, the research focused on the LPT platform’s use in humans, but the company discovered promising results for the treatment of a variety of diseases in dogs as well. This allowed InnoCan to pursue veterinary medicine commercialization. Once commercialized, the company will enter a $52 billion veterinary services market, creating a new potential growth driver for the company. Although CBD-based veterinary pharmaceuticals are in the early stages, the company’s research and encouraging results relating to the use of CBD pharma to treat critical animal illnesses have piqued the market’s interest. InnoCan will gain a first-mover advantage in Veterinary Services and CBD when it begins licensing and monetizing its technologies. This new market provides significant growth opportunities and InnoCan is well-positioned to lead because of the appealing properties of its emerging drug technology.
InnoCan is also collaborating with Ramot, Tel Aviv University’s Technology Transfer Company, on a groundbreaking exosome-based technology that has the potential to aid in the recovery of infected lung cells. This technology, which is expected to be delivered by inhalation, uses CBD to target both central nervous system (CNS) indications and the Covid-19 virus. The company is also developing CBD-infused skincare and body care products, as well as topical compositions for the treatment of diabetes symptoms and numerous compositions including cannabis for the treatment of diabetic-related diseases.
InnoCan is working on numerous innovative drug delivery platforms to address the perceived low bioavailability of CBD and greatly improve upon current delivery mechanisms, including LPT and exosome drug delivery platforms, which promise to increase bioavailability performance. Several successful research trials led by the company have opened the way to a wide range of therapy options for LPT.
As the demand for CBD grows in the medical and healthcare industries, InnoCan Pharma has the potential for long-term sustainable growth through the development of innovative delivery systems, as CBD’s efficacy in treating a wide range of medical ailments is well documented. InnoCan Pharma continues to achieve significant milestones on its path to commercializing its groundbreaking technology, and the recent financial performance confirms the company is moving in the right direction.