Oxford Cannabinoid Technologies (OCT) has shared its FY23 results and summarised its ongoing activities. OCT completed preclinical research for OCT461201 (programme 1) and in July 2023 the first healthy volunteer was dosed in the Phase I safety study; results are expected in Q3 CY23. Management believes this programme will be Phase II ready by Q4 CY23, and plans to target neuropathic pain associated with chemotherapy-induced peripheral neuropathy (CIPN) and visceral pain in irritable bowel syndrome (IBS). OCT also completed preclinical research for OCT130401 (programme 2) and announced the company’s expansion into oncology (programme 4). As we push out our launch timelines for programme 1 to FY30 (FY29 previously; FY27 estimated by management) to reflect the current halt in development, update net cash and roll forward the model, our valuation adjusts to £25.3m or 2.6p per share (£26.1m or 2.7p/share previously). In line with management guidance, we have updated our cash runway to Q424 (Q124 previously) but emphasise the imminent need to raise funds to advance clinical activities.

Oxford Cannabinoid Technologies (OCT) is focused on developing cannabinoid medicines for the treatment of pain and other indications. Lead asset OCT461201 is a synthetic, endocannabinoid system-targeting new chemical entity (NCE) being developed for the treatment of neuropathic pain associated with chemotherapy-induced peripheral neuropathy (CIPN) and visceral pain in irritable bowel syndrome (IBS). Preclinical studies have demonstrated positive early signals of efficacy in pain indications and IBS models. Patient enrolment for OCT’s UK Phase I dose-escalation and safety study of OCT461201 in healthy volunteers started in May 2023, and management believes this programme will be Phase II ready in Q3 CY23. OCT has three other active programmes in early stages of development, which involve synthetic phytocannabinoids and cannabinoid derivatives. We value OCT at £26.1m or 2.7p/share.