Why is the Medlab (ASX:MDC) share price surging 8% today?

The Medlab (ASX: MDC) share price is rising today after the European Patent Office announced its intention to grant Nanocelle a patent.

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The Medlab Clinical Ltd (ASX: MDC) share price is rising today after the European Patent Office announced its intention to grant the Australian company a patent for its Nanocelle technology.

The Medlab share price is up 8.33% today to 26 cents per share. 

Medlab is a medical research and development company that's gained a lot of publicity for its innovative medical use of THC, one of the psychoactive compounds in cannabis.

It largely focuses on THC and other cannabinoid products as pain-relievers, but the company is also engaged in researching and formulating novel biotherapeutics or new therapeutic medicines derived from natural organisms.

Its products aim to improve health outcomes in early to moderate stage chronic diseases such as chronic kidney disease, pre-diabetes, and obesity.

What is Medlab's Nanocelle technology?

Medlab is currently focused on the development of Nanocelle technology that can increase the solubility of medicines. It does this through a sub-micron spray, which is administered to the membrane lining the inside of the mouth.

When sprayed, it provides faster and more effective absorption of active ingredients into the bloodstream, without the need for needles or pills.

Medlab considers Nanocelle "a commercially viable platform that offers unique opportunities for partnering with some of the biggest players in the pharma industry". It was behind considerable Medlab share price rises in February this year.

When the European Union grants Medlab's patent, it will be the second granted for Nanocelle, following receipt of an Australian patent in September 2020. Medlab has also filed patent applications in the United States, New Zealand, Singapore, Hong Kong and Canada.

What Medlab management said

Medlab CEO Dr Sean Hall said the patent was the next step in Nanocelle's expansion into worldwide markets.

Receiving notice of intent from the European Patent Office represents another important validation of our NanoCelle drug delivery platform, offering Nanocelle protection in one of the world's largest markets.

The grant will not only bolster the competitive advantage of our pharmaceutical and nutraceutical portfolio, it will also support our robust research and development pipeline and commercial partnering focus. We are delighted with this recognition.

Medlab share price snapshot

The Medlab share price has been on a rocky road, rising from 15 cents in July 2020 to more than 36 cents in January this year. It's gained 6% in 2021 so far but lost 8% over the past 12 months and is down 40% against the S&P/ASX 200 Index (ASX: XJO).

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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