Auscann (ASX:AC8) share price up 6% on phase I study results

The Auscann Group Holdings Ltd (ASX: AC8) share price has smoked the market today, thanks to the results of its completed Neuvis Phase I study.

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ASX Cannabis share price represented by asx investor holding card with cannabis leaf on it

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The Auscann Group Holdings Ltd (ASX: AC8) share price has smoked the All Ordinaries Index (ASX: XAO) today, up 6.2% to 17 cents compared to a 0.3% gain for the All Ords.

The Auscann share price movement is in response to an update regarding the completion of its Neuvis phase I study.

Neuvis phase I study results

Auscann announced the completion of its first clinical trial of an orally administered cannabis-based capsule developed to treat nerve pain.

The tetrahydrocannabinol (THC) and cannabidiol (CBD) combination using its Neuvis hard-shell capsules involved the treatment of 25 patients. The study was divided into 2 groups who received either a low 2.5mg or high 10mg dosage. The hard-shell capsules were supplemented with a cross-over to a pre-formulation oil comparator.

Auscann noted that the hard-shell capsule showed a lower peak concentration than the oil-based comparator with the 2.5mg dosage. However, the 10mg quantity was similar to the comparator and to the results for its volunteers receiving comparable dosages of its oral spray Sativex product.

Furthermore, adverse events were seen more often during treatment with the oil comparator than with the Auscann capsule formulation. The company recorded 16 of 28 (57%) patients experiencing at least one adverse event with the oil, compared to 7 of 25 subjects (28%) treated with the capsules. The Sativex oral spray adverse event rate was at 66%, more than double the rate of using capsules.

The full clinical trial of its completed phase I study is expected to be released in next month. In addition, Auscann will prepare to conduct an investigator-led phase IIA research in the near future.

Management commentary

Auscann's CEO Nick Woolf was pleased with the completion of the phase I study of the hard-shell capsules using the novel Neuvis platform. He commented:

We are committed to an evidence- based approach to support the appropriate prescribing of our novel cannabinoid-based pharmaceutical products. Our intent in conducting this study was to provide data to assist doctors in the use of our THC:CBD combination capsules and to make informed treatment decisions.

Our capsules are presented in a familiar dose form so that Healthcare Professionals can have confidence in dose uniformity and ease of use for their patients, which should enhance patient compliance and correct dosing.

About the Auscann share price

The Auscann share price has fallen heavily since the cannabis hype wore off in the market in 2018. It reached a 52-week high of 39 cents before dropping to its 52-week low of 13.5 cents in March. 

At the time of writing, Auscann shares are up by more than 6%.

Motley Fool contributor Aaron Teboneras 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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