Axim Biotechnologies Inc (OTCMKTS:AXIM) has started the year on a roll depicted by a 60% plus spike from all-time lows. The spike comes at the backdrop of one of the worst performance in the stock’s history.
The stock turned bearish early last year and in the process shed more than 80% in market value as short sellers continued to push the stock lower.
Upward Momentum Catalysts
However, the sell-off might as well have run its course as fundamentals have improved a great deal, at the back of a string of positive developments in recent months. For starters, the company has inked a strategic partnership that paves the way for it to expand its footprint into Australia and New Zealand.
Axim Biotechnologies has also strengthened its patent portfolio having secured a patent allowance for its suppository formulations for cannabinoids. In the last quarter of last year, the company also obtained a GMP license that allows it to produce cannabinoid pharmaceuticals products in the Netherlands.
Axim Biotechnologies Price Analysis
Given the string of positive developments, it does not come as a surprise that the stock has started to bounce back from all-time lows in the market. The stock has since rallied from below the $0.60 handle to the $1.34 mark.
Price action indicates the stock faces immediate resistance at the $1.50 handle. A rally followed by a close above the critical resistance level should open the door for bulls to come in and continue pushing the stock up the charts.
However taking into consideration the underlying long-term bear trend, below the $1.50 handle, the stock remains susceptible to further declines. Any sell-offs should experience strong support at the $0.90 mark, which happens to be the immediate support level. A sell-off followed by a close below the critical support level could open the door for the stock to continue edging lower in continuation of the long-term bear trend.
In our view, the stock remains well positioned to continue climbing up as fundamentals continue to turn bullish.
What Does Axim Biotechnologies Do?
Axim Biotechnologies casts itself as a leading cannabinoid research and development company. The company researches, produces, and sells pharmaceuticals botanical products. It is also a big player in the extraction and purification of cannabinoid technologies.
Global Expansion Drive
Axim Biotechnologies is due for a bounce back from current lows having reaffirmed its long-term growth prospects. The company has already signed a letter of intent with Australia’s largest dental impression company.
A deal with Impression Healthcare Limited opens the door for the distribution of the company’s products throughout Australia and New Zealand. The deal essentially strengthens the company’s ability to reach out to a wider target market in pursuit of sales.
The two are to work together on the development of new products including an oral rinse liquid for the treatment of gum disease and strep throat.
“As regulations standardize and public opinion of cannabinoid-based therapeutics becomes more widely supportive, it is essential for AXIM® to focus on capturing international markets at this stage of our company’s growth,” said CEO George E. Anastassov.
In addition to Australia and New Zealand expansion, the company has also received a major manufacturing license that paves the way for it is to expand its footprint into the Netherlands. The Dutch Ministry of Health Welfare and Sports has granted the company-manufacturing license. The license allows the usage of the company’s cannabinoid-based pharmaceutical products in clinical trials.
Axim is in the process of beginning production of its flagship pharmaceutical product, MedChew Rx for the treatment of multiple sclerosis.
Patent Portfolio Factor
The company has also achieved a significant milestone in the development of cannabinoid-based drug products for treating challenging health conditions. The U.S Patent Office has already granted the company a new patent for a suppository composition for cannabinoids.
The proprietary suppository composition has the potential to enhance absorption through the mucosal membrane. In return, it should be able to enable useful administration of cannabinoids in patients struggling with pain nausea as well as vomiting. Axim intends to us ether formulation in a clinical program that seeks to treat gastrointestinal conditions.
“Our now patented product formulations will position AXIM further as a leader in cannabinoid pharmaceuticals and move forward our clinical programs. AXIM remains committed to finding research-based cannabinoid solutions to help people suffering from gastrointestinal disorders with no effective remedies,” said Mr. Anastassov.
After a wild 2018, Axim Biotechnologies looks set to turn the page having started the year on a roll. A spike in share price underlines growing investor confidence about the company’s long-term prospects. Supporting the upward momentum is a string of positive developments that affirms the company’s growth metrics. That said Axim Biotechnologies looks set to continue surging on renewed investor interest in the stock.
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Disclosure: We have no position in AXIM and have not been compensated for this article.