Commercialisation is on the cards for pet pharmaceuticals company CannPal (ASX: CP1) after the company signed a deal with the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
The agreement has seen the CSIRO grant CannPal the exclusive global rights to commercialise the patented MicroMAX microencapsulation technology for use in the field of animal therapeutics.
The deal follows a rigorous 18-month trial during which it was demonstrated that the CSIRO's MicroMAX technology can successfully encapsulate CannPal's oil formulations, enabling the medicinal cannabis company to add hemp and cannabis oils to a wider range of new product applications for animals.
The agreement announced this morning has been a boon for investors, with the share price in CannPal skyrocketing by 73.91 per cent to $0.20 per share at 10.47am AEDT.
CannPal managing director Layton Mills (pictured) says the CSIRO agreement will enable the company to develop a steady revenue stream while it continues to focus on the pharmaceutical element of the business.
"We are starting with a small-scale commercial evaluation with the new product format to get some feedback from consumers," says Mills, who was recently named Australia's number 64 Top Young Entrepreneur.
"Pending that goes well we can make some decisions to move forward. We are very mindful on conserving capital to make sure we hit milestones that we previously communicated to the market."
"There are a lot of companies that seem to be commercialising some pretty successful products in the hemp space, so we see some really great opportunities to support the pharmaceutical developments that remain our focus."
MicroMAX is CRISO's patented microencapsulation technology platform designed to encapsulate microscopic droplets of oil in a special food grade material, to protect bioactive ingredients from oxidation and help deliver them to the gastrointestinal tract.
CannPal has been evaluating the tech with the CSIRO over the last 18 months to develop new and innovative product formats using less regulated compounds from the hemp plant, as part of the company's near-term revenue generation strategy.
Additionally, the medicinal cannabis company has announced that it has seen significant anti-inflammatory activity in the hemp-derived oil formulation used during the evaluation of MicroMAX. The data from this research has been used to file a new patent application.
The formulation contains compounds from the hemp plant which are already approved for use in consumer products, providing CannPal with a path to market for complementary evidence-based products without the need for regulatory approval.
"It's exciting to see significant anti-inflammatory activity in hemp-derived formulation used during the evaluation," says Mills.
"This gives us confidence to explore the ways in which we can commercialise complementary products for the animal health market with high quality evidence-based formulations using some of the less regulated compounds in the hemp plant, to support CannPal's ongoing pharmaceutical development which remains our core focus."
Business News Australia
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