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Research: Healthcare
Medlab is a drug delivery biotechnology company with a proprietary platform, NanoCelle, which is a patented nanomicellar formulation that can improve the delivery of drugs. With the growing appreciation of the medicinal properties of cannabis, Medlab’s lead product became NanaBis, a THC:CBD (1:1) cannabis extract encapsulated in NanoCelle particles, which enable a convenient buccal spray delivery. The most recent breakthrough was Medlab’s announcement that it had successfully produced a synthetic version of NanaBis, thus significantly streamlining the regulatory pathway. Once the product reformulation is done (current guidance is eight to 10 months), NanaBis will re-enter clinical development (potentially Phase III) as a fully synthetic, non-opioid pain relief drug optimised with proprietary delivery technology aimed at a vast market.
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Medlab Clinical |
Novel drug delivery and synthetic cannabinoids
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Pharma & biotech |
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1 June 2021 |
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Medlab is a drug delivery biotechnology company with a proprietary platform, NanoCelle, which is a patented nanomicellar formulation that can improve the delivery of drugs. With the growing appreciation of the medicinal properties of cannabis, Medlab’s lead product became NanaBis, a THC:CBD (1:1) cannabis extract encapsulated in NanoCelle particles, which enable a convenient buccal spray delivery. The most recent breakthrough was Medlab’s announcement that it had successfully produced a synthetic version of NanaBis, thus significantly streamlining the regulatory pathway. Once the product reformulation is done (current guidance is eight to 10 months), NanaBis will re-enter clinical development (potentially Phase III) as a fully synthetic, non-opioid pain relief drug optimised with proprietary delivery technology aimed at a vast market.
A drug delivery technology company at its core
Historically Medlab had developed a large portfolio of consumer health products using its NanoCelle delivery technology with established nutraceuticals and several medicinal cannabis extract products available via special access programmes. Sales grew to A$8.1m and A$5.8m in 2019 and 2020. However, the clinical development of NanaBis (Phase I/II completed; observational study ongoing, n=2,000) delivered such attractive data in pain management that Medlab decided to focus on drug development and now aims to divest its consumer health business.
Synthetic cannabinoids mean clear regulatory path
As Medlab announced in May 2021, it has successfully produced with its suppliers two synthetic cannabinoids, THC and CBD, which will replace the botanical extract in its lead drug candidate NanaBis. Although the transition to a new formulation will require additional work, the guided delay to previous R&D timelines is less than a year. The advantage that a synthetic formulation offers is significant, as regulators typically prefer synthetic compounds. The initial indication is cancer-related bone pain, but this could be expanded to general chronic pain. With the opioid crisis unravelling, the support for non-opioid pain killers from various stakeholders (regulators, patient and physician groups, investors, etc) will only grow, we believe.
Valuation: EV of A$47.8m
As a drug developer Medlab has loss-making operations, so a relative valuation is not feasible. At the end of calendar Q121, Medlab had a cash position of A$14.0m and A$198k in debt (implied EV of A$47.8m). Synthetic NanaBis development progress, any news on consumer health portfolio divestment and any potential NanoCelle partnering updates are the main near-term catalysts.
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Financial highlights
Source: Refinitiv |
Medlab Clinical is a research client of Edison Investment Research Limited
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Research: TMT
Q121 marks the first anniversary of Thin Film Electronics’ (Thinfilm) strategic pivot to commercialising its proprietary ultra-thin solid-state microbattery product for applications such as hearing aids, earbuds and wearable medical devices. The company looks on track to deliver initial product revenues in late 2021.