Canopy Growth Corp (TSE:WEED) (OTCMKTS:TWMJF) (FRA:11L1) announced their partially-owned subsidiary Canopy Health Innovations added to a previously filed suite of U.S. patent applications with an additional 8 patents for products that deliver cannabinoid therapeutics to patients suffering from a range of ailments.
The new compounds are as result of their partnership with Beckley Canopy Therapeutics, and demonstrate the significance of marijuana-derived cannabinoids in the human pharmacopeia. Increasingly, it would appear that cannabinoids have ameliorative effects on a widening scope of afflictions throughout the human body.
The likelihood of medical patents granted having an incrementally positive influence over legislators in the U.S. in the fight to de-prohibit cannabis for medical use at the federal level is very strong, according to advocates.
With this new group of applications, Canopy Health Innovations has submitted a total of 39 patents for medicines targeting both human and animal conditions.
Canopy Health Innovations has raised over CA$15 million from new and existing shareholders (Canopy Growth put in $4 million) and has filed Exempt Distribution reports on SEDAR suggesting the company may be being positioned for its own IPO at some point in the future.
This is one of the less visible value drivers of Canopy Growth Corporation that superficial reporting by mainstream financial media fails to incorporate in typically sensationalist pieces such as that published by Barron’s
The eight new patent applications relate to:
- Amyotrophic Lateral Sclerosis (also known as ALS, Lou Gehrig’s disease)
- Anxiety and its various sub-groups (in humans and animals, in conjunction with Canopy Animal Health)
- Cognitive enhancement (in humans and animals, in conjunction with Canopy Animal Health)
- Pain and various sub-groups (in humans and animals, in conjunction with Canopy Animal Health)
- Opioid sparing, pain management, and addiction (through Beckley Canopy Therapeutics)
- Addiction and smoking cessation (through Beckley Canopy Therapeutics)
- A platform and method for delivery of cannabis-based compositions.
Bruce Linton, CEO of Canopy Growth has long been promoting the idea that Canopy’s healthcare focused activities would be at least as important in not more so.
Way back in May 2017, Bruce told me in a podcast, ”
I think that if you have, if things connect in the core point, which is the production of cannabis, but they have different focus points so that they achieve stuff – so, for example, we’ve set up Canopy Health Innovations, and into that we have a number of PhDs and a great number of research, and the relationship with Canopy is the supply of cannabis into that in all formats. And the commercial right to present the resulting intellectual property from Canopy Health into the market for royalty.
That gave focus and attracted top-tier talent that might not have wanted to be inside of a singular focused LP. In the case of Rivers, it is an aligned business on the cannabis, but it has a different priority that just draws some of the skills. So that’s why in the announcement we put forward the XIB led by Sean McNulty will be kind of acting as the, I’ll call it ‘functional president’ because they’ve been around the space quite a long time, but their principal skill set is money and banking. And so this is really a transactional cost of equity thing for everybody we’re dealing with.”
Canopy Growth has a lot up its sleeve, and more surprises to the upside could be on the way.
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