OWC Pharmaceutical Research Corp (OTCMKTS: OWCP) Reaches A Bottom, Bounce Back Looms

OWC Pharmaceutical Research Corp (OTCMKTS: OWCP) has plunged to all-time lows as a long-term descending trend line continues to cap upside action. The stock has lost more than 90% in market value, over the past year, having succumbed to soaring short selling pressure.

OWCP Price Analysis

However, the implosion does not reflect the tremendous potential that the company boasts as a long-term cannabis play. Underlying developments have shown that the company has what it takes to become a success in the cannabis sector.For starters, the company has secured a patent in the Czech Republic covering its topical formulations for skin disorders. Early this year the company posted positive Phase 1 safety data for its cannabis MSG ointment for the treatment of skin diseases.The announcement that the company is poised to collaborate with Sourasky Medical Center in Israel is another development that underscores OWC Pharmaceuticals long-term prospects.Amidst the string of positive developments, the stock has continued to edge lower in continuation of a bear trend that began early last year. A plunge to the $0.03 mark leaves the stock languishing at all-time lows. OWCP Daily ChartGiven that the stock remains susceptible to further drops as short sellers remain in firm control, a bounce back to the $0.06 could help avert further slides. The $0.06 mark is the immediate resistance level above which the stock would turn bullish in the short term.A spike to the $0.06 level is very much possible given the underlying bullish momentum in the cannabis sector as well as improving fundamentals that support a potential bounce back.

What Does OWC Pharmaceuticals Do?

OWC Pharmaceuticals is a cannabis research and development company. The firm develops cannabis-based medical products for the treatment of various medical conditions including multiple myeloma as well as psoriasis and chronic pain.

Israel R&D Push

The inking of a strategic partnership with Sourasky Medical Center is poised to expand the company’s footprint into the Middle East in pursuit of opportunities for growth. This development should continue to excite investors and could trigger upside action.Under the terms of the agreement, Sourasky Medical Center is to perform a crossover study to compare safety and tolerability of OWC’s tablet with Buccal Sativex in adults. The tablet in question is a proposed novel treatment for people being treated with medical cannabis for smoking.

“There is a very large amount of hype surrounding medical applications of cannabis, but we are one of the few companies doing real medical research. Our collaboration with Sourasky Medical Center is further proof of our commitment to developing real cannabis-based medical solutions,” explains CEO Mordechai Bignitz.

Cannabis Ointment Milestones

The trials in Israel follows the delivery of positive safety data from phase 1 study of the company’s medical grade cannabis ointment for the treatment of skin diseases. The company is planning for a phase 2 trial for psoriasis as no adverse events were registered in Phase 1 trials.Positive trial results are not the only thing working for the company as part of ongoing clinical trials. Late last year, the Czech Republic granted the company a patent covering topical formulations for skin disorders. OWC Pharmaceuticals intends to raise additional capital this year as it eyes additional financing to facilitate research scope and depth of clinical and regulatory activities.OWC Pharmaceuticals is also eyeing a reverse stock split to replace and consolidate outstanding shares.

“Management believes that this change is essential to position the company for potential future financings and for other structural changes, such as a possible stock market upgrade, which we may be required to develop the full potential of the Company and its technology,” OWC Pharmaceuticals in a statement.

What Next For OWC Pharmaceuticals

OWC Pharmaceuticals appears to have reached a bottom if recent price action activity is anything to go by. The stock has continued to consolidate above the $0.03 level. Any positive news such as the expansion into Israel should go a long way in strengthening the stock’s sentiments in the market.OWC Pharmaceuticals is a potential bounce-back play after hitting bottom in the market. Waning short selling pressure signals a potential bounce back as investors continue to take note of underlying developments that point to a bright future.We will be updating our subscribers as soon as we know more. For the latest updates on OWCP, sign up below!Disclosure: We have no position in OWCP and have not been compensated for this article.