OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) Selloff Showing Signs of Exhaustion

OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) has hit rock bottom after plunging to record lows, at the back of a ferocious sell-off. With investor’s sentiments at all-time lows, the need for groundbreaking catalysts to spark a bounce back is surging. Management has since responded.

OWC Pharmaceuticals Price Analysis

The company is fresh from announcing positive safety data from a phase 1 trial of a medical grade cannabis ointment, for the treatment of skin diseases. The fact that no severe events were experienced as part of the trials, underlines the fact that the company has on its hands an asset that could help reinvigorate investors’ confidence. OWCP Daily ChartA potential bounce back from the $0.11 mark could be in the offing as the stock is currently flirting with a key support level. Early in the year, the stock did bounce back from the spot. Formation of a double bottom could as well signal waning short selling pressure, a development that could see bulls come in and push the stock higher.Any bounce back in the short term will have to breach the $0.14 resistance level, for the stock to continue climbing the ladder. For the stock to turn bullish, considering the long-term bear trend, it first needs to rise and stabilize above the $0.15 mark.Below the crucial resistance level, the stock remains susceptible to further drops as short sellers remain in firm control.

About OWC Pharmaceuticals

OWC Pharmaceuticals is a specialty pharmaceutical company focused on the research and development of cannabis-based medical products. The company is currently working on the use of cannabis products for the treatment of various ailments, key among them being post-traumatic stress disorder and migraines.

Positive Clinical Trials

OWC Pharmaceuticals is a potential bounce-back play having hit rock bottom and serving a groundbreaking catalyst. Confirmation that the company’s medical grade cannabis ointment posted positive trial results on the treatment of skin diseases is a positive development that should excite the markets.The company is planning to carry out phase 2 trial to investigate the potential use of the cannabis ointment in the treatment of psoriasis, buoyed by phase 1 positive results.

“We are encouraged by the positive results from these Phase 1 safety trials. This was the first trial to assess the safety and tolerability of medical grade cannabis ointment as a topical treatment for skin diseases. We plan to commence a Phase 2 trial with MSC ointment for the treatment of psoriasis in the third quarter 2019,” said CEO Mordechai Bignitz.

Posting of positive clinical trial results comes weeks after OWC pharmaceuticals secured a patent in the Czech Republic for topical cannabis formulations, for use on skin disorders. The patent, which is valid for up to10 years, details the use of pharmaceutical composition made up of cannabidiol, for the treatment of dermatologic conditions.

Expansion Drive

The Czech Republic is not the only country that OWC Pharmaceuticals has set sights on, as it eyes opportunities for its wide array of cannabis products targeting skin conditions. The company is in the process of filing patent protection in other countries having secured one in Australia.In addition, the developer of cannabinoid-based therapies did confirm the successful reduction of CBD enriched disintegrating tablet, late last year. The tablet is an alternative to cannabis smoking that OWC Pharmaceuticals plans to use to strengthen its product pipeline in pursuit of revenue opportunities in the multi-billion industry.

“OWCP's sublingual disintegrating tablet will offer an alternative to smoking and inhalation, allowing for controlled, consistent dosing and diligent compliance to medical regimens and offer quick pain and other symptoms relief as Sublingual absorption provides a direct route for cannabis to enter much quicker to the blood system," Mr. Bignitz in a statement.

Bottom Line

OWC Pharmaceuticals has underperformed the overall cannabis industry over the past year. While the stock has lost more than 70% in market value, the onslaught is showing signs of exhaustion thanks to recent developments. The company has made important strides in the development of cannabis therapies key to generating long-term value and revitalizing investor interest in the stock.Positive clinical trial results supported by an expansion drive in pursuit of cannabis opportunities on the global scene points to a bright future going forward. Given that the stock is still flirting with all-time lows, it might be wise to pick up some cheap shares while one can.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.