Here’s What You Can Expect From Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX)

Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) has pulled back since we last covered the stock here. The pullback can partly be attributed to profit-taking considering that the stock hit several new highs since our last coverage of it.We see exciting catalysts in CNBX and we view the pullback in the stock as a consolidation before a powerful explosion. In this piece, we examine the catalysts to let you see what could be lying ahead for this company.But before we get into the details, take a look at the share price action. CNBX Daily ChartBusinessFor the sake of readers who are not already familiar with CNBX, we’ll quickly review the company’s business model.CNBX is engaged in researching and developing personalized treatments for cancer. To do this, the company is focused on harnessing therapeutic properties of natural cannabinoids, which can be extracted from cannabis and hemp plants.CNBX has its research and development (R&D) center in Israel. In its search for cancer therapies, CNBX has developed advanced screening systems and other unique technologies that it has sought to patent.Cancer treatment is a $161 billion revenue marketWe see CNBX breaking out as market participants become more aware of its revenue potential in cancer treatment market – which we are going to look at shortly. As we are about to see also, CNBX is putting out positive announcements that should help increase its investor awareness.According to a new report by Zion Market Research, cancer treatment market will generate $161.3 billion in annual revenues by 2021, up from $112.9 billion in 2015. Cancer treatment market presents an unmet medical need, which provides an opportunity for emerging developers of cancer therapies such as CNBX to succeed in this market.Looking into the announcements that CNBX has released in recent months, the company has more than one way to profit from cancer treatment market. In addition to its ongoing clinical study of a cancer therapy, CNBX is also building its intellectual property (IP) portfolio – which could give it a higher edge in cancer treatment market.On September 25, CNBX announced that it has applied to patent its proprietary cancer screening technology in a number of jurisdictions. It applied to patent the technology in the United States, Canada, Brazil, Europe, China, India and Australia. CNBX made the national patent application after it received a favorable report from the PCT (Patent Cooperation Treaty) authorities. PCT found that all CNBX claims are innovative and inventing.The technology that CNBX has sought to patent relates to personalized cannabis-based cancer treatment. CNBX’s technology enables the examination of a large number of cannabis compounds that contain varied levels of cannabinoids such as THC, THCA, CBD and CBDA. The technology also enables for screening of the impact of these compounds on cancer cells.Regarding the proprietary screening technology and the patent filings, Dr. Eyal Ballan, Chief Scientist of CNBX, commented that:

"It is a well-established notion that the success in treating cancer is based on an accurate, yet, versatile and evolutionary treatment that overcomes cancer cell sustainability and resistance."

SourceCNBX made another patent application on September 6, 2017, this time in the United States, in the ongoing efforts to build its IP portfolio. The US patent relates to a new method for assessing the sensitivity of various cannabinoid-based treatment modalities on patient-derived tumor biopsies and blood circulating tumor cells (CTC).Regarding this patent application, Dr. Moran Grinberg, the vice president of R&D at CNBX stated:

"There is a need for a more personalized approach toward drug development and diagnosis that takes into account the diversity of cancer patients, as well as the complex milieu of tumor cells within a single patient. This approach is faced with numerous challenges, including tumor heterogeneity and tumor mutation rates along with insufficient tumor samples available."

SourceAs CNBX grows its IP portfolio, it expands its revenue potential in the cancer treatment market. In addition to using its patents to develop its own highly differentiated cancer therapies that can give it a higher competitive edge, CNBX can license its patents to outside developers and generate royalty revenues in return.ConclusionAt the end of its May 2017 quarter, the most recent reported period, CNBX had cash of $3.2 million on the balance sheet, which increased sharply from the prior quarter. Considering that cash is often a major issue in the small cap world, CNBX stands out as an exciting small cap story.We will be updating our subscribers as soon as we know more. For the latest updates on CNBX, sign up below!Image courtesy of NuggPorn via FlickrDisclosure: We have no position in CNBX and have not been compensated for this article.