Ovation Science Takes Topical Cannabis to the Next Level with Its Patented Drug Delivery Technology
Ryan Allway
March 23rd, 2021
App, Exclusive, News, Top Story
Cannabinoids have become some of the most popular health and wellness products in the world. For example, CBD-infused topicals are expected to reach $4.5 billion in sales by 2025, according to Cultivating Wellness, which represents a 540% increase since 2020. At the same time, topicals infused with THC or combinations of CBD and THC are becoming more popular.
Ovation Science Inc. (CSE: OVAT) (OTCQB: OVATF) has the exclusive worldwide rights to formulate and market topical cannabis products made with Invisicare®, a patented polymer delivery system that controls the release of active ingredients, including CBD, THC or combinations of the two, to the skin and through the skin.
Let’s take a look at the science behind Ovation Science’s drug delivery system, what sets its 30+ product formulations apart from the competition and why investors should pay close attention to its unique business model as it ramps up commercialization.
Making Topicals More Effective
Cannabis topicals are CBD and/or THC infused lotions or creams that are applied to the skin for localized relief of pain, soreness, irritation, as well as for its anti-aging properties. On the other hand, transdermal products are absorbed through the skin to provide systemic effects while avoiding the liver metabolism and lung damage associated with oral or inhalation.
Ovation Science differentiates itself from other infused product manufacturers with its expertise in pharmaceuticals and drug delivery. For example, President and Co-Founder Terry Howlett has over 35 years of experience in pharmaceuticals and skincare management roles and James Roszell, Ph.D., Head of Product Development, is a doctoral chemist and developer of Invisicare® with over 40 years of product development experience.
Click here to receive an investor deck and corporate updates
The company’s Invisicare® technology is a patented polymer delivery system that enhances the delivery of active ingredients for topically applied skin care products. Using hydrophilic and hydrophobic polymers, the technology bonds active ingredients to the skin for up to four hours and forms a barrier that resists wash off and perspiration. The barrier also protects the skin from outside elements and toxins while “supercharging” active ingredients.
The company’s research demonstrated only a 3% release after two hours for market-leading formulations compared to a 40% topical release for its Invisicare® CBD formulations. Furthermore, leading transdermal formulas state that they have a 10% to 25% release while the Invisicare® formulation showed a greater than 80% transdermal penetration at six hours.
There are several benefits to releasing more CBD or THC in topical and transdermal formulations. The release of more THC or CBD into the body potentially produces a greater therapeutic effect for patients or consumers, which could lead to more repeat customers over time. Less THC or CBD can also be used to produce the same effect and lower costs.
Attractive Royalty-based Model
Ovation Science licenses its proprietary formulations on a state-by-state basis to multi-state operators, or MSOs, that sell cannabis products in local jurisdictions. The company supplies the manufacturing know-how along with the Invisicare® polymers to the licensee that in turn manufactures and markets the formulations in their own state.
In exchange for the formulations, the company earns a “packaging fee” that amounts to a royalty on the licensee’s product sales. Many investors are drawn to royalty-based companies since there’s little to no cost of goods sold (COGS) and lower capital expenditures (CapEx), which translates to higher profit margins and improved scalability.
With medical marijuana legal across 36 states, the company has ample opportunities to expand beyond Nevada where the company’s inaugural licensee has already proven to be a market leader including the distinction of achieving the #1 in topical dispensary sales. The company is also actively pursuing international expansion opportunities in Canada and the European Union to grow and diversify its revenue.
Click here to receive an investor deck and corporate updates
The company also launched its own CBD-focused product lines, including Invibe® MD and ARLO CBD Beauty. Invibe® MD is focused on pain, sports recovery and relaxation creams and other anti-inflammatory conditions whereas ARLO CBD Beauty is focused on anti-aging products that help the skin look younger.
The Bottom Line
Ovation Science is well-positioned to capitalize on the increasing popularity of CBD and THC topicals within the cannabis industry. With its scalable and high-margin royalty-based business model, the company aims to attract MSO licensees in the 36 states that have legal medical marijuana as well as pursue international opportunities in Canada and the EU.
Investors may want to keep an eye on the company over the coming months and quarters. After reporting a 70% increase in January revenue, the company believes that the topical cannabis business could be experiencing the start of a big turnaround especially with the reopening of most dispensaries and retail outlets.
For more information, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Matt Hawkins is the founder and managing principal of Cresco Capital Partners, LLC (“Cresco”), a private equity firm focused specifically on investing in the legalized cannabis industry. Since its inception in the summer of 2015, Cresco has made 14 investments out of its first fund and is currently raising this fund, Fund II. Prior to the […]
Tom Zuber is Zuber Lawler & Del Duca’s Managing Partner. He has a degree with highest honors in biomedical engineering and has advised some of the most iconic companies in the world on their patent and trademark portfolios. He is at the cutting edge of cannabis patent and trademark law. He holds degrees from Harvard University and Columbia Law […]
Next Green Wave is a fully integrated premium seed to shelf craft cannabis producer offering products through its in-house brand portfolio and wholesale flower for other large cannabis manufacturers.
Revive Therapeutics’ cannabinoid pharmaceutical portfolio focuses on rare inflammatory areas such as liver disease.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
