Zelda Therapeutics Ltd 

ZLD Details             
                                              
Made an agreement with Knop Laboratories: Zelda Therapeutics Ltd (ASX: ZLD) made a manufacturing and distribution agreement with Knop Laboratories. As a result, the stock rallied over 86.8% in this year to date (as of July 7^th, 2017). With this move, the group would be able to fasten their clinical trial process, as there is already a certainty of product supply. This would also enable the mass production of the group’s medicines for the treatment of eczema, insomnia and autism, offering a natural alternative to many patients who suffer from these conditions. Knop is well positioned in Chile with a chain of pharmacies and there is a possibility for them to be a major distribution channel for Zelda registered medicines post their finishing of the clinical trials in insomnia, eczema and the recently announced expansion into autism. The group chose Chile for their research work as the region legal framework recognizes the importance of medical cannabis, while enables their production under strict regulatory controls for the treatment of medical conditions. The country is also a cost-effective destination for Zelda to conduct clinical trials. Meanwhile, ZLD stock corrected over 29% in the last three months placing the stock at lucrative levels. We give a “Hold” recommendation on the stock at the current price of $0.07
 

ZLD Daily chart; (Source: Thomson Reuters) 

Auscann Group Holdings Ltd

AC8 Details

Growing flexibility to prescribe cannabinoid medicines for critically ill patients: Auscann Group Holdings Ltd (ASX: AC8) stock generated outstanding returns in the last six months over 102.3% (as of July 7^th, 2017). The rights have been restored to access cannabinoid medicines via a TGA’s Special Access Scheme Category A. Accordingly, Australian medical practitioners will be able to prescribe cannabinoid medicines to critically ill patients. The Therapeutic Goods Administration (TGA) have two access pathways in enabling Australian medical practitioners to prescribe unregistered cannabinoid medicines - the Authorized Prescriber Scheme (APS) and the Special Access Scheme (SAS) Category B. Both of them need medicinal practitioner to apply for and wait for approval from the TGA prior to being able to prescribe. The group believes that excluding cannabinoid medicines from this pathway was not needed as the cannabinoids have the safety evidence from pre-clinical and clinical studies. On the other side, after delivering an outstanding rally, the shares of Auscann Group have cooled down in the last three months, declining by 37.8% (as of July 7^th, 2017). Meanwhile, the shares recovered over 11.2% in the last four weeks (as of July 7^th, 2017) and we believe the bullish momentum in the stock would continue in the coming months. Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $0.43


AC8 Daily chart; (Source: Thomson Reuters) 

Stemcell United Ltd

SCU Details

Exploring options for Asia market: Stemcell United Ltd (ASX: SCU) reported their signing of a Letter Agreement with iCAN Israel-Cannabis to negotiate and execute a mutually agreeable licensing and services agreement. ICAN would offer services to the group with respect to their business operations in Asia. Moreover, an investment agreement would be made with the group for over 5% to 10% stake in ICAN, subject to due diligence. The group believes that iCAN end to end services would boost their capabilities and scope of business in Medical Cannabis field. ICAN would assert to an idea germination development and review through clinical trials and importantly the medical delivery systems; as well as the appropriate marketing and branding. If the deal is signed, the will be able to expand their services in Asia market. Meanwhile, Stemcell United reported their initial revenue from sale of dendrobium product in the last quarter and started marketing of their dendrobium essence infused mask this quarter. Moreover, the group is also in discussion with a Chinese Pharmaceutical firm on offering consultancy services for manufacturing resins. Stemcell United is planning to strengthen their capital position and intends to issue up to 25 million ordinary shares at $0.10 per share to sophisticated investors. The group intends to use these funds for their working capital and developments like scaling up dendrobium business and exploring opportunities in Cannabis business. SCU would get shareholder approval if the issue of the shares exceeds the 15% capacity. SCU stock generated an outstanding return of over 514.3% in the last six months (as of July 7^th, 2017), and we give a “Buy” rating on the stock at the current price of $0.08


SCU Daily chart; (Source: Thomson Reuters) 

Creso Pharma Ltd

CPH Details

Pipeline of launches: Creso Pharma Limited (ASX: CPH) reported that they are on track to launch their CannaQix human health nutraceutical product in anxiety and stress segment by first quarter or second quarter of 2018. They are also aiming and line extensions in bone metabolism by second quarter of 2019. The products use proprietary Swiss delivery technologies which would boost the bioavailability and absorption of their active ingredients. In May, importation of medicinal cannabis in Australia happened while the first patients are currently getting CanniMed oils via Creso’s partner, Health House International. Creso Pharma is targeting to import medical cannabis products into the Asia-Pacific and Latin American regions from Switzerland, post their deal with Cannapharm AG. Meanwhile, Creso Pharma is aiming to launch several SwissVit premium nutraceutical products across the Asia-Pacific region and Australia. These premium, high-quality nutraceutical products are collaborated with INNutriGEL Switzerland using the INNutriGEL SoftGums proprietary delivery technology that was specifically formulated for that range. SoftGums are made from vegetable starch, and not animal waste material like current gelatinbased vitamin competitor supplements on the market.
 
Aiming Asian opportunity: The firm is talking with potential commercial partners and targeting to launch the products in Australia and across Asia-Pacific in 2018 as they see the region lucrative given the rising demand for wellness and prevention health products among well-informed consumers. As per Euromonitor research, the Asia Pacific market for vitamins and dietary supplement sales is larger than the US and generated over $US40 billion in sales in 2016. China is the major vitamin and dietary supplement market in the region, which comprises 45% of total retail value and is forecasted to rise at a 10% CAGR over 2016-2021 to $US26 billion. The group is aiming to introduce several SwissVit nutraceutical products specifically formulated to target a number of health related areas, including eye health, immunity, bones and joints, oral iron supplementation, and digestion. Accordingly, they intend to leverage their nutraceutical products innovative and propriety characteristics to penetrate in the Asia-Pacific region.

Overall market potential for the group (Source: Company reports)

Animal health products update: The group is on track to launch their proprietary formulated hemp-based complementary feed products for companion and zoo animals by September 2017. They are planning to launch anibidiol® 2.5 to cater small companion animals, and anibidiol® 80 aiming large companion animals and zoo animals at Switzerland and Europe, followed by South Africa and selected countries in the Gulf Region and Latin America.
 
Stock performance: The shares of Creso Pharma rallied over 139.1% in this year to date (As of July 7^th, 2017) but corrected over 20.9% in the last three months. Given the group’s strong pipelines and Asian market opportunity, we recommend a “Hold” on the stock at the current price of $0.53


CPH Daily chart; (Source: Thomson Reuters)

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