OWC Pharmaceutical Research Corp (OTCMKTS: OWCP) is a potential bounce-back play as alluded in our previous update. After hitting bottom at the $0.02 level, the stock has bounced signaling renewed investor interest.
OWCP Stock Catalysts And Price Analysis
The bounce back coincides with the confirmation that the Company is poised to collaborate with Sourasky Medical center in Tel Aviv as part of a safety study targeting CBD tablets. In addition, the Company has confirmed that it won’t participate in the undifferentiated cannabis market.
Instead, OWC Pharmaceutical is positioning itself to become a research and development company focusing on medical products and pharmaceutical-based cannabis. While the Company has made significant progress in becoming an R&D firm, the stock has continued to trend lower.
Over the past year, OWC Pharmaceutical has shed more than 80% in market value after succumbing to bearish pressure. However, in the recent past, the stock has shown signs of breaking out having bounced off all-time lows.
A rally back to the $0.03 level is a development that should continue to excite long-term investors. As it stands, the stock looks set, to make a run for the $0.06 mark, the next substantial resistance level. A rally past the critical resistance level should open the door for the stock to push for this year highs.
Considering the long-term bear trend, OWC Pharmaceuticals remains susceptible to further drops below the $0.06 resistance level.
What Does OWC Pharmaceutical Research Corp Do?
OWC Pharmaceutical bills itself as a research and development company. The Company’s core business revolves around researching cannabis-based medical products targeting various conditions, including multiple myeloma, psoriasis, and post-traumatic stress disorder.
OWC Pharmaceutical biggest undoing has been the lack of news flow that investors can use to gauge underlying developments as well as long-term prospects. A lack of press releases has continued to dent the stock’s sentiments in the market.
The last piece of information came in March when the Company confirmed it had inked a strategic partnership with Israeli based Sourasky Medical Center to conduct a safety and tolerability trial on the Company’s CBD tablets for the treatment of chronic low back pain.
“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,” says Mordechai Bignitz, CEO of OWC Pharmaceutical Research Corp. “Our collaboration with Sourasky Medical Center is further proof of our commitment to developing real cannabis-based medical solutions.”
The safety study is part of the Company’s renewed drive of becoming a research and development company. The Company is no longer interested in the undifferentiated cannabis sector on the belief the business is being commoditized and that any short-term value would disappear
In 2018, the OWC Pharmaceutical made appropriate moves as part of its R&D drive. Some of the R&D achievements attained in the year included the completion of a safety study on a cannabis cream for a skin disorder.
OWC Pharmaceutical also completed the development of next-generation sub lingual disintegrating tablet, being developed as a potential substitute for smoking. In the multiple myeloma program, the firm completed a dosing study of a proprietary systemic emulsion delivery system.
“While we understand that investors are keen to receive news flow, our clinical programs take time to obtain the necessary approvals, recruit patients and process data. These clinical programs are however key to our ultimate ability to provide genuine medical solutions and thereby to create real value for our shareholders,” stated Dr. Stanley Hirsch, Chairman of the Board.
The Company has since raised $5 million through a preferred convertible debt offering. The funding will go a long way in funding ongoing clinical programs as well as research scope. OWC Pharmaceuticals has also confirmed it is evaluating potential commercialization pathways and relationships as it looks to generate some value from its clinical programs.
What Next For OWC Pharmaceutical Research Corp
OWC Pharmaceutical has shed a significant amount of market value over the past year and now appears to have hit the floor. A bounce back from all time, lows on huge turnover of trade shares could as well signal a correction higher, on bears exiting positions.
While the stock is an ideal bounce-back play, it may be wise to wait for the stock to rise and stabilize above the $0.06 mark, to consider it a long-term investment play. This would confirm that the downtrend line has been broken.
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Disclosure: We have no position in OWCP and have not been compensated for this article.