Cann Group Ltd (ASX: CAN) shares opened slightly higher on Monday but have since retreated. This comes after the company announced a partnership with Emyria Ltd (ASX: EMD). At the time of writing, the Cann share price is trading 1.75% lower at 56 cents after having reached as high as 59 cents in earlier trade.
Let's take a look at what the company announced.
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Cann and Emyria partnership
The Cann share price is failing to ignite today after the company announced a collaboration with Emyria will seek to accelerate the registration of a unique, low-dose, cannabidiol (CBD) only capsule with Australia's Therapeutic Goods Administration (TGA).
Under the agreement, Emyria's EMD-003 drug development program will use Cann Group's proprietary Gelpell microsphere technology, as the basis for seeking a Schedule 3 registration for treating unmet needs in mental health. Cann Group previously acquired the rights to the Gelpell technology via its purchase of Europen company Satipharm.
Scheduling is a national classification system that determines how medicines are made available to the public. Schedule 3 registration will result in the product being an over-the-counter, pharmacist only medicine.
The collaboration leverages a number of important milestones that have already been met, including phase 1 trials of the Satipharm capsule.
Emyria will lead the registration program with its experienced drug development and clinical team. The company has worked with Satipharm in the past, having written more than 400 Satipharm prescriptions to more than 170 patients.
According to the company, clinical trials have already hit the ground running and are guided by insights from Emyria data which include robust safety, efficacy and patient preference data for more than 3,500 patients treated at Emyria's Emerald Clinics.
Emyria managing director Dr Michael Winlo commented:
This partnership greatly accelerates Emyria's EMD-003 drug development program by combining Emyria's unique clinical data and drug development expertise with Cann Group's best in-class CBD delivery technology.
Satipharm CBD has already completed robust stability testing as well as Phase 1 clinical trials as required by the TGA. This allows us to move straight to pivotal clinical outcomes trials saving significant time and money. An experienced Contract Research Organisation (CRO) has already been engaged to manage these trials.
Further, at Emyria, we already have deep insights into how the Satipharm product performs clinically, having written over 400 Satipharm prescriptions to more than 170 patients. This de-risks the pivotal clinical outcomes trials required as an important first step towards registration with the TGA.
Global mental health challenge
The collaboration highlights the global challenge of treating increasing mental health concerns, particularly over the last 12 months.
A recent internal analysis from Emerald Clinics revealed that more than 50% of its patients were diagnosed with moderate to severe depression, anxiety and/or stress.
If the collaboration is successful, the companies will be able to deliver a new, registered medicine for the treatment of psychological distress and symptoms of depression, anxiety and stress.
Cann Group CEO Peter Crock commented that:
We anticipate there will be a large patient demand for a TGA registered CBD medicine that is convenient to patients and demonstrates the highest standards of quality, safety and efficacy.
Cann share price snapshot
Over the past 12 months, the Cann share price has fallen by nearly 12%. Year to date, Cann shares are also down by nearly 6%.
Based on the current share price, the company has a market capitalisation of around $158 million.
