PreveCeutical: A Promising Delivery Platform for CBDs


Ryan Allway

May 8th, 2017

News, Top News


Cannabidiol (or “CBD”) has captured nearly as much attention as its psychoactive cousin tetrahydrocannabinol (or “THC”) over the past few years. Cutting edge research has shown tremendous promise across a variety of medical conditions, while the non-psychoactive nature of the CBD compound means that it is legal in all 50 U.S. States. As such, investors may want to take a closer look at the CBD market given the increasing promise and opportunity.

In this article, we will take a look at PreveCeutical Medical Inc.’s new research and development agreement with UniQuest Pty Limited and its plans to develop a leading CBD delivery platform using UniQuest ’s Sol-Gel technology. PreveCeutical Medical is currently engaged in an amalgamation agreement that would take the company public in the coming months, which could lead to further financing opportunities for increasing investment into the company’s research and development efforts. If you are interested to learn more about PreveCeutical Medical and stay up to date on its progress please click here to sign up for its email alert and to receive the company’s presentation.

Rapidly Growing Market

CBD has rapidly grown in popularity over the past several years. According to the Hemp Business Journal, the U.S. market for the cannabinoid is expected to grow at a 59% compounded annual growth rate to $2.1 billion in anticipated annual sales by 2020. Consumers have also become increasingly interested in CBD oils and related CBD-based products as evidenced by Google Trends data between 2012 and 2017 (see for instance Figure 1 below).

A lot of this interest stems from mounting evidence that suggests potential health benefits of the CBD compound across a wide range of conditions. According to Google Scholar, researchers have published more than 2,500 research papers in 2017 alone while large companies like GW Pharmaceuticals plc (NASDAQ: GWPH) are actively conducting clinical trials to assess the compound’s benefits in treating serious medical conditions.

Improving CBD Delivery

The problem with many cannabinoids is bioavailability. After taking CBD oil or pills, the cannabinoid passes through the stomach and intestines where only a fraction is absorbed in what is known as ‘first pass metabolism’. Studies have shown that the oral bioavailability of cannabinoids is low and ranges from 6% to 33% in humans and dogs, respectively, which means that consumers may not be realizing the full benefit of the compound.

The end result of PreveCeutical Medical’s mentioned research and development would leverage soluble gels – or sol-gels – to dramatically improve bioavailability. Sol-Gels are taken nasally and rapidly gel upon contact with mucosal tissue, which paves the way for direct nose-to-brain delivery. This effectively bypasses the stomach and intestines – eliminating first pass metabolism – and may dramatically improve bioavailability – even compared to nasal sprays and other newer delivery systems. Additionally, the gel stays in the nasal passages, slowly releasing the CBD while keeping it active for up to seven days. The ease of application and its long-lasting effects could be attractive for patients when compared to other delivery systems.

New R&D Agreement

PreveCeutical Medical recently signed the mentioned research and development agreement with UniQuest Pty Limited. Under the terms of the 30-month agreement, UniQuest – the primary commercialization company for the University of Queensland – will conduct a research program for the extraction, formulation, and ex-vivo evaluation of CBDs for local/direct nose-to-brain delivery via Sol-Gels. The results of the studies will be owned by the company.

PreveCeutical Medical’s Chairman and CEO, Stephen Van Deventer, has this to say about the research program: “Working with UniQuest and the University of Queensland on this research program provides PreveCeutical with unique opportunities towards developing products that promote good health and wellness. Nasal delivery of CBDs will potentially provide a safer and reliable delivery platform with clinical benefits that include benefits for pain, inflammation, seizures, and mental illness.”

The research program will encompass fractionation and analysis of plant-derived CBDs, formulation of soluble gels infused with fractionated CBD extracts, and the performance of CBD-fraction delivery studies from the leading sol-gel formulations. The goal is to create a product that demonstrates enhanced bioavailability that can then be integrated into products or licensed to other companies in developing their own CBD-based products.

Looking Ahead

PreveCeutical Medical Inc. is taking an interesting new approach to developing a delivery method for CBDs and potentially other cannabinoids. In addition to this program, the company offers many other nutraceutical products, including its Caribbean Blue Scorpion Venom.

With companies like GW Pharmaceuticals plc (NASDAQ: GWPH) and AXIM Biotech Inc. (OTC: AXIM) seeing great success in the area, the company could have an opportunity to build significant value for shareholders by being an early mover with a promising technology. Investors interested in PreveCeutical Medical can sign-up to receive an e-mail alert and information about its proprietary research efforts as the company prepares to go public.

Sign-up for free at http://landing.secfilings.com/pmi. And, for more information, visit the company’s website at www.preveceutical.com.

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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