3 Nasdaq Biotech Cannabis Stocks

10/23/2015 9:34 am EST

Focus: STOCKS

Michael Berger

President & Founder, Technical420.com

There are more than 300 publicly traded cannabis companies, but only a few trade on an exchange regulated by the SEC, so Michael Berger, of Technical420.com, studies three of them to determine which has the most upside.

Investors and financial institutions have shown great interest for publicly traded cannabis companies, but many are afraid to invest in them because most trade on the over-the-counter (OTC) exchange.

There are more than 300 publicly traded cannabis companies, but only a few trade on an exchange regulated by the SEC. The cannabis related companies that trade on a national exchange include GW Pharmaceuticals (GWPH), Insys Therapeutics, Inc. (INSY), and Zynerba Pharmaceuticals (ZYNE).

Out of These Three, Which Has the Most Upside?

We believe GWPH has the most upside due to its deep pipeline of products in various stages of FDA testing, its significant Wall Street coverage, and its entrance into the United States market. GWPH currently has four drugs in Stage 3 FDA testing and the company expects to announce the results of these tests in late 2015/early 2016.

GWPH is focused on conducting formal development programs for Epidiolex in the treatment of both Dravet syndrome and Lennox-Gastaut syndrome (LGS). The company also announced plans to develop Epidiolex for Tuberous Sclerosis Complex (TSC) and expects to commence a TSC Phase 3 clinical program in the second half of 2015. 

INSY also has significant upside following its recent sell-off and we are monitoring shares for a bottom. INSY is a commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products.

Earlier this year, INSY commenced dosing of pediatric epilepsy patients in a Phase 1/2 safety and they announced that a pharmacokinetic study is being conducted on pediatric epilepsy patients. The clinical trial will evaluate INSY’s pharmaceutical CBD oral solution at three different dosage strengths. This is INSY’s first in patient dosing with its pharmaceutical CBD formulation. In addition to the Phase 1/2 study, INSY’s CBD clinical development program includes Phase 3 clinical trials to evaluate its CBD candidate for the treatment of Lennox-Gastaut syndrome and Dravet syndrome.

ZYNE is the newest company out of the three. The company is focused on developing and commercializing synthetic cannabinoid therapeutics formulated for transdermal delivery. ZYNE is developing two therapeutic candidates based on proprietary transdermal technologies. 

ZYNE recently initiated Stage 1 Clinical trials on its CBD Gel product (ZYN002) which is the first and only synthetic CBD formulated as a patient-protected permeation-enhanced gel for transdermal delivery. Zynerba is studying ZYN002 in patients with refractory epilepsy, Fragile X syndrome, and osteoarthritis.

ZYNE is studying THC Patch product (ZYN001) in patients with fibromyalgia and peripheral neuropathic pain. ZYNE expects to initiate ZYN001 Phase 1 clinical studies in the near future.

Michael Berger, Founder and President, Technical420.com

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