The Avecho Biotechnology Ltd (ASX: AVE) share price is beating the All Ordinaries Index (ASX: XAO) by a mile today. This comes as the company announced it has begun participation in Australia's largest observational study of medicinal cannabis products.
During late morning trade, the Avecho share price reached an all-time high of 3.9 cents. However, investors have been quick to take some profit off the table. At the time of writing, the biotech company's share is swapping hands for 3.3 cents, still up a sizeable 83.3%. In comparison, the All Ordinaries Index has climbed 0.6% higher to 6,883 points.
What did Avecho announce?
According to its release, Avecho advised that it will commence the testing of its enhanced cannabidiol formulation in the CA Clinics Observational Study (CACOS). The clinical testing phase will look at the performance of its oral cannabidiol (CBD) TPM formulation in human patients.
The CACOS study is seeking to recruit up to 3,000 people around the country through a network of medicinal cannabis clinics. During the trial, CACOS will provide patients with a questionnaire that will ask about side effects, dosage response, and remedy satisfaction.
In previous studies, Avecho's oral CBD TPM product demonstrated an increase oral bioavailability of CBD in animals. The company has now set itself up to collect feedback on product performance in human patients using medical cannabis for a number of treatments. This in turn will be compared against other commonly prescribed CBD products in the market.
Avecho stated that it will begin enlistment and run the trial throughout next year, in a bid to capture as many patients as possible.
Words from the CEO
Avecho CEO Mr Paul Gavin commented on the major achievement:
The Avecho team is excited and optimistic about our plan to develop CBD products enhanced by our TPM technology.
This trial is an important step in gathering real world evidence from patients. Entering into an existing trial framework provides Avecho with both cost and speed advantages. The observational trial design allows the product to be used in a range of indications, which may prioritise specific indications for further development, or eliminate indications where the treatment is less effective.
Furthermore, Mr Gavin spoke about the recent Therapeutic Goods Administration (TGA) decision to reduce the maximum dosage of non-prescribed CBD products. He said:
The down-scheduling of CBD is fantastic news for patients, but a 150mg dose is on the limits of efficacy for a range of indications. We believe increased bioavailability will be a key value driver that will positively differentiate our products in this growing competitive market.
How has the Avecho share price performed in 2020?
The Avecho share price has shot up over 700% in the past 12 months, reaching an all-time high today.
After falling as low as 0.2 cents in March, the company has been gradually moving along an upwards trajectory. Avecho has a market capitalisation of $49.5 million on current prices.
