We covered Axim Biotechnologies Inc (OTCMKTS:AXIM) back in May, where we saw how the stock had made impressive gains over a short span of time.
In that same report, we also noted the upside potential in the stock while citing a number of catalysts. In today’s piece, we put out more evidence that support our conviction that AXIM has bright prospects and that the stock could be set for a more powerful upward move than earlier thought.
But before we get into the details, take a look at the share price action.
For the sake of our readers who are not already familiar with AXIM, here’s a brief background on the company.
AXIM is an American corporation based in New York. The company is engaged in the development and commercialization pharmaceutical, nutraceutical, oral health and cosmetic products based on cannabinoids – such as cannabidiol (CBD). As such, AXIM is a player in the rapidly growing medical cannabis industry.
AXIM boasts a diversified and robust cannabinoid-based products, many of which it has continued to develop in order to expand their addressable market. The company’s flagship products include CanChew, a CBD-based controlled release chewing gum, CanChew Plus, another CBD-based product that is undergoing clinical trials in patients with IBS.
The other flagship product is MedChew Rx, a gum composed of combination CBD/THC. MedChew Rx is also undergoing clinical trials for the treatment of pain and spasticity in patients afflicted by with multiple sclerosis.
Evidence that AXIM is a cannabis stock with compelling prospects can be seen from the company’s expanding portfolio of intellectual property (IP), funding that has continued to pour in to enable the company to advance its clinical trials, strategic partnerships that are helping to lower the company’s clinical risks and expand its revenue potential, and the company’s rapidly shrinking losses and growing cash balance.
Beginning with expanding an IP portfolio, on June 23, AXIM announced that it had applied to the United States Patent and Trademark Office (USPTO) to patent an invention of a chewing gum composition with controlled release of cannabinoids and other agents for treatment of addiction and chronic pain.
AXIM may be the first to seek to patent invention of chewing gum as the delivery system for combination of opioids and cannabinoids. With the patent filing, the company has moved a step closer to the $100 billion pain management market. AXIM’s IP assets have continued to increase that the company so far boasts 15 patent applications and two granted patents.
If financing of clinical programs was ever an issue that threatened to derail AXIM’s progress, it is no longer a problem. On June 19, AXIM announced that it had secured a $4 million institutional funding toward advancing clinical trials. The company will use the funds to continue developing treatments for Irritable Bowel Syndrome (IBS), pain and spasticity in Multiple Sclerosis (MS). AXIM also intends to use the funding to continue a study on creating an alternative to Marinol using its patented chewing-gum delivery system.
Concerning the funding, George Anastassov, the CEO of AXIM said:
“This financing enables us to continue to build on the progress we have made with our cannabinoid clinical development program for indications where there are currently no effective treatments.”
MedChew Rx is AXIM’s candidate for treatment of pain and spasticity in MS patients. Therefore, with MedChew Rx, AXIM is pitching to the $24.8 billion MS treatment market, according to the estimates of market intelligence firm Grand View Research.
AXIM made tremendous progress in 2Q17. It cut its net loss for the quarter to $0.6 million, down from $1.9 million in the same period last year. Meanwhile cash balance increased sharply to $4.1 million from $0.7 million a year earlier.
AXIM has also entered into several strategic collaborations to accelerate its clinical pipeline development and bolster its revenue potential. During 2Q17, the company inked a deal with Quay Pharmaceuticals Ltd., a UK company, for development and manufacturing of several new pharmaceutical products for a range of indications. In that same quarter, AXIM signed a deal with an Israel-based company to cooperate in research aimed at creating a chewing product to treat restless leg syndrome (RLS).
Finally, AXIM and the University of British Columbia in Canada agreed to collaborate on a clinical trial of CanChew Plus to create treatment drug-induced psychosis in adult patients.
AXIM has compelling growth catalysts and a major break out in the stock can be expected as the market becomes aware of its bright prospects.
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Disclosure: We have no position in AXIM and have not been compensated for this article.