Cure Pharmaceutical Holding Corp (OTCMKTS:CURR) is back to winning ways, on bulls regaining control after bears threatened to plunge the stock to all-time lows. After arousing concerns on plunging below the $1 a share mark, the stock has bounced back nicely and in the process recouped a substantial amount of losses accrued over the past one year. A multi-year licensing deal with Canopy Growth Corp (NYSE:CGC) is the latest catalyst, strengthening the company’s sentiments among investors.
Cure Pharmaceuticals Licensing Deal
2018 is turning out to be a pivotal year for the vertically integrated drug delivery and Development Company, its sentiments among investors having turned positive after a string of positive news. The stock is already up by more than 200% after bottoming out from the $0.90 mark.
Cure Pharmaceutical is up by more than 100% for the year as it continues to trade in a strong uptrend. A pullback from the $4.50 has helped draw in some buyers waiting to see if the upward momentum has gained pace to breach the critical resistance level.
A breach of the $4.60 mark should open the door for the stock to make a run for the $6.30 mark, seen as the next substantial resistance level. On the downside, immediate support is at the $3 a share level on any pullbacks, above which bulls remain in full control. A breach of the critical support level could open the door for short sellers to push the stock lower.
What Does Cure Pharmaceutical Do
Cure Pharmaceuticals bills itself as integrated drug delivery and Development Company focused on improving drug efficacy as well as safety through proprietary drug dosage forms. The company’s lead product is CUREfilm a patented and proprietary delivery system. The company is currently working on an array of cutting-edge delivery platforms.
Catalysts Behind 200% Rally
Cure Pharmaceuticals sentiments in the market inched a notch higher on announcing the signing of a term sheet for the acquisition of cannabinoid-based treatments from Therapix Biosciences. Investors have continued to push the stock up, ever since, on the belief that expansion into the cannabis space will help strengthen the company’s prospects going forward.
The company is now in the process of acquiring cannabis-infused non-pain assets, expected to go a long way in strengthening its pipeline of products. The assets include clinical drug candidates as well as pre-clinical drug candidates.
The proposed acquisition is also set to strengthen the two company’s relationship.
“The proposed acquisition has the potential to build on our existing relationship with Therapy and create unique value by combining Therapy’ promising clinical programs with CURE’s proprietary drug delivery technology and manufacturing capabilities,” said Rob Davidson, CEO, and Chairman of CURE Pharmaceutical.
Canopy Licensing Deal
Investor confidence in the stock has also inched a notch higher on Cure Pharmaceutical announcing the signing of a multi-year licensing agreement Canopy Growth. The cannabis company has acquired an exclusive license to the company’s patented, Multi-layer oral thin film delivery system for use with cannabis extracts and biosynthetic market.
Under the terms of the deal, Cure Pharmaceutical is to manufacture CUREfilms that can deliver cannabis extracts thereby expanding the commercialization and monetization of the proprietary technology. Cure Pharmaceuticals is also to retain the right to manufacture and sell synthetic cannabinoids using the patented technology.
“At CURE, we focus on synthetic cannabinoids for CURE film products, but with our new licensing business model, we will expand the impact and applications of our technology to these other promising approaches by partnering with an industry leader in this market,” said Mr. Davidson.
What Next For Cure Pharmaceuticals
Inking a multiyear licensing deal with a company of Canopy Growth is a major development that affirms the credibility of Cure Pharmaceuticals CUREfilm proprietary drug delivery system. The licensing agreement should generate significant value for the company, given that Canopy Growth is one of the biggest players in the sector and in need of a reliable system for delivering medicine to its vast portfolio of patients.
Cure Pharmaceuticals delving deeper into the cannabis sector is the catalysts that continue to strengthen its sentiments in the market. It thus does not come as a surprise that investors are pushing the stock up the charts given the opportunities up for grabs in the ever-growing sector.
The gains in the stock market have come primarily on expectations that the company is on the right track as it continues to pursue opportunities in the multi-billion cannabis sector. Given that, the company has shown it has what it takes to generate significant value in the sector then, the stock looks set to continue powering especially on breaching the $4.50 resistance level.
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Disclosure: We have no position in CURR and have not been compensated for this article.