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Why the Zelda Therapeutics Ltd share price rocketed 26% today

It certainly has been a great end to the week for the Zelda Therapeutics Ltd (ASX: ZLD) share price.

The medicinal cannabis company’s shares have rocketed 26% this morning to 7.1 cents.

What happened?

This morning Zelda announced positive results from its ongoing pre-clinical research into the use of cannabinoids as anti-cancer agents.

According to the release, the latest results from a series of in vitro studies have confirmed that both THC-rich and CBD-rich oils have had a statistically significant anti-cancer effect across a range of different breast cancer cell lines.

Management believes these results demonstrate the potential for cannabinoid-based therapies to be therapeutically beneficial for a number of breast cancer types which include hormone receptor positive, HER2+, and triple negative cancer types.

Zelda expects to release further data in the next few months related to additional in vitro and in vivo studies.

Should you invest?

I can’t say I’m surprised to see its shares rally today. Not only is this positive news, but its shares fell sharply in May as investors took profit.

But while I think Zelda could have enormous potential like strategic partner Auscann Group Holdings Ltd (ASX: AC8) and fellow pot stock Creso Pharma Ltd (ASX: CPH), it is still too early for an investment for me.

Until medicinal cannabis is being prescribed by a large number of physicians and these companies are generating significant sales, I’ll be watching on from the sidelines.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.