Creso Pharma prepares to tap into US$3.5 billion anxiety and stress markets

By Trevor Hoey. Published at Feb 14, 2017, in ASX Biotechs

Creso Pharma (ASX:CPH) announced on Valentines day 2017 that it had achieved significant progress with its first human cannabidiol (CBD) fully plant-based nutraceutical product. A nutraceutical is a naturally nutrient-rich pharma grade standardised food or dietary supplement that you eat or drink in order to strengthen and maintain good physical and mental health.

CPH expects pilot production to commence in the second quarter of 2017 with the expectation of a full commercial launch of the product in the first half of 2018.

Creso’s first CBD nutraceutical product will provide people with nutritional support to their endocannabinoid system to manage situations of everyday anxiety and stress. The body of evidence supporting CBD as an effective treatment in anxiety is particularly strong.

Other CBD products on the market are sub-optimal as they are not pharmaceutical grade and there is a lack of proper standardisation both in terms of dosage and formulation. Alternative synthetic treatments for anxiety and stress are mainly benzodiazepines, which have a problematic safety profile.

Anxiety and stress are important markets for Creso, estimated to be worth around $US3.5 billion as of 2015 and is forecast to growth, based on data released in December 2015 by IMS Health, MIDAS.

Endocannabinoid system impacts cardiovascular, digestive, immune and nervous system functions

The endocannabinoid system regulates a number of physiological processes in humans such as cardiovascular, digestive, immune and nervous system functions. The health of individuals is dependent on the endocannabinoid system functioning at optimum levels.

CPH’s product is designed to be taken in conjunction with a healthy diet and exercise to help individuals cope with situations of everyday stress.

It will be available over-the-counter (OTC) without a doctor’s prescription.

The product provides an innovative alternative therapeutic option designed to enhance mental focus and reduce stress via a standardised dose and formulation and with high bioavailability and absorption.

The product will be delivered via CPH’s unique and innovative buccal delivery technology (via the inside lining of the cheek) which ensures more effective delivery and absorption of CBD.

Buccal absorption allows the phyto nutrients to be delivered directly into the blood stream via the rich blood vessels in the mouth, avoiding the solubility and absorption problems common to pills and capsule products which are delivered via the gastrointestinal tract.

Stability testing to commence in July followed by regulatory submission to health authorities

Following pilot production, CPH plans stability testing starting in July 2017 before moving into full-scale production and regulatory submission to health authorities.

The company has developed a strong branding and marketing plan ahead of the expected commercial launch of the product in the first half of 2018. The initial launch will be in Switzerland, followed by key European and Latin American countries.

Of course it should be remembered that CPH is in the early stages of its development and therefore investors should seek professional financial advice if considering this stock for their portfolio.

CPH Chief Executive and co-founder, Doctor Miri Halperin Wernli said, “We are very pleased with the achieved significant progress of our first CBD full-plant nutraceutical product for human health. For healthy individuals, supplementing the endocannabinoid system with our CBD full plant product is an excellent way to maintain optimal health in times of physiological and psychological stress.”

”Through up-regulation of the natural endocannabinoid system, our CBD nutraceutical product will provide significant support for physical health and the management of anxiety and stress of everyday life, promoting better mental health and alertness, and strengthening focus and cognition.”

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