OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) is making a comeback after being on the receiving end for the first eight months of the year. The stock has broken out on a gigantic move as it continues to erase losses after a roller coaster ride.
Stock Price Analysis
From September lows, OWC Pharmaceuticals has risen by more than 100%. Buyers appear to be in full control, even though the full-year chart indicates that the stock is still trading in a downtrend.
The stock’s uptrend faces immediate resistance at the $0.54 mark, above which it could make a push for the $0.72, handle another resistance level. On the downside, immediate support is at the $0.30 handle, below which the stock could drop to this year’s lows of $0.24.
Current trading levels suggest that the stock is in the midst of a burgeoning uptrend, a critical point for investors looking to generate significant returns as the Bull Run gains momentum.
Before we look what could drive the stock higher let as look at what exactly OWC Research does.
OWC Research Business Overview
OWC Pharmaceutical is a public medical cannabis research and development company. Through its wholly-owned Israeli subsidiary, One World Cannabis, the company conducts medical research and clinical trials for the development of cannabis-based pharmaceuticals and treatment for various medical conditions.
The company is currently developing treatments for multiple myeloma, psoriasis as well as fibromyalgia. It is also working on a soluble tablet delivery system that will have applications for other indications. OWC Pharmaceuticals also provides consultation services to government and private entities on the development and implementation of medical cannabis products.
OWC Pharmaceuticals has been receiving lots of love on Wall Street, in recent weeks, mainly because of a big development on the use of marijuana for medicinal purposes. Zynerba Pharmaceuticals reporting positive data on the use of cannabis for the treatment of X syndrome has helped strengthened investor sentiments on similar trials in progress.
OWC Pharmaceuticals has its own clinical trials in progress which investors believe will have a positive outcome, buoyed by Zynerba performance. In addition, the cannabis biotech company has already reported positive clinical trials in a psoriasis study with a 70% reduction in biological marks.
In June, the company filed a patent application for its active cannabinoid-based topical cream. The patent application if approved should accelerate the ongoing discussions and negotiations regarding scientific and medical collaboration.
“After we announced the highlights of our pre-clinical efficacy study for our active, cannabinoid-based topical cream, starting with psoriasis, we received numerous inquiries from firms and organizations worldwide interested in purchasing the cream or initiating commercial or scientific collaboration with OWCP,” said CEO Mordechai Bignitz.
The filling of the patent allows the company to discuss with potential customers and partners the requirements needed for manufacturing of the cream in accordance with the highest available standards.
The company has also been granted a patent in Australia of the use of its proprietary cream on the treatment of skin orders. The approval marks yet another important milestone as the company continues to strengthen its IP portfolio.
Germany Sales Opportunity
In the first half of the year, OWC Pharmaceuticals signed an agreement with Medic Innovation partners. The agreement paves way for the company to pursue sales opportunity in Germany as it continues to expand its sales efforts into new markets.
Germany presents a unique sales opportunity given that the country has already legalized medical marijuana use. The legislation provides for the reimbursement of medical cannabis by healthcare facilities sin the country. Touching foot in the country should pave way for the company to pursue new opportunities across the continent.
In addition, OWC Pharmaceutical has received a first-ever Institutional Review Board approval to commence a safety study for a cannabis-based topical cream with more than 3% THC. The company is currently conducting a safety study for the cream in one of the biggest academic hospital in Israel.
Investor confidence on the stock has also received a boost on OWC Pharmaceuticals filling Intellectual property protection for various delivery methods. The filling marked a very rare approach in the medical marijuana industry which if approved could represent a significant asset for the company.
Regulatory filings indicate that the company has appointed, Ms. Hannah Feuer, to serve as a member of the board as well as in the Audit Committee. She joins the company with more than 20-years’ experience in capital markets and management of financial institutions.
OWC Pharmaceuticals is at a critical point if its recent bounce back from all-time lows is anything to go by. A buying opportunity appears to be building up on the stock, given the many things going for the company on the development of medical marijuana products for addressing various medical conditions.
The company is aggressively strengthening its IP portfolio from which it should be able to generate significant returns in future. The outcome of ongoing trials on the use of marijuana to treat psoriasis should have a significant impact on the stock price as it continues to trade higher.
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Disclosure: We have no position in OWCP and have not been compensated for this article.