Medlab Clinic Ltd (ASX:MDC) announced this morning that the New South Wales government has granted a research licence to Medlab for the use of medical cannabis, making Medlab one of the first commercial corporates in Australia to undertake cannabis work.
Medlab operates a certified biologics laboratory facility in Sydney and its research on cannabis will be for therapeutic purposes, including development of an alternative method of administration of cannabis.
Medlab’s research will broadly encompass pain management as well as other medical conditions for varying age groups.
Medlab intends to use its patented small particle platform, NanoCelle for therapeutic cannabis applications. Using the NanoCelle platform, Medlab believes smaller doses of a compound (e.g. Cannabis) can be used in patient care, resulting in less risk and/or complication to the patient. Further the NanoCelle platform decrease the possibility of social misuse of the product. As the NanoCelle platform is developed, Medlab expects a speedier research timeframe, and hopefully faster product release to market.
Medlab was officially admitted to the ASX on the 13th July 2015 at a price of $0.20, raising a total of $9 million. Since the IPO Medlab has traded between $0.16 and $0.19. Initial investors were aware of the imminent cannabis licence, however approval was not certain until today. Since the announcement Medlab’s share price has climbed 5.4 per cent (12pm AEST).
Author: Ben Visser
Jul 29, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.