Why these ASX cannabis shares surged higher today

The Botanix Pharmaceuticals Ltd (ASX:BOT) share price and the MGC Pharmaceuticals Ltd (ASX:MXC) share price have surged higher on Wednesday. Here's why…

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The market has continued its charge on Wednesday and is trading notably higher this morning.

Two companies that are certainly on a high right now are the cannabis companies listed below. Here's why they are smoking the market today:

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price is up 7.5% to 14.5 cents following the release of positive study results this morning. At one stage the cannabis-focused dermatology company's shares were up as much as 18.5% to a 52-week high of 16 cents.

According to the release, the interim study results confirm that its BTX 1308 product has significant anti-inflammatory and immune modulating activity in skin disease. The release explains that this is the first time in global research that cannabidiol (CBD) has been shown to have multiple beneficial effects in skin disease in a randomised clinical study.

Botanix executive director, Matt Callahan, believes the result provides Botanix with "further excitement and justification for our lead programs currently in Phase 2 clinical development for acne (BTX 1503) and atopic dermatitis (BTX 1204), that both have significant inflammatory and immune components. These programs are well advanced with study completions approaching in 3Q and 4Q this year respectively."

The MGC Pharmaceuticals Ltd (ASX: MXC) share price stormed almost 6% higher to 5.4 cents this morning after the diversified cannabis company announced a new distribution agreement with ONIX Empreendimentos e Participações. This agreement will provide it with access to the Brazilian market via ONIX's subsidiary OnixCann, a distributor of phytocannabinoid-based products in Brazil.

The co-founder and managing director of MGC Pharmaceuticals, Roby Zomer, appeared to be very pleased with the agreement. Zomer said: "Brazil represents a key emerging market and with the expected growth of the use of cannabis-based medicines in the region it could become a significant market for the Company. We look forward to building on this relationship with ONIX, utilising its innovative digital platform, as we grow our presence in Latin America."

Motley Fool contributor James Mickleboro has no position in any of the 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 Scott Phillips.

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