viewXPhyto Therapeutics Corp.

XPhyto Therapeutics making progress as it links cannabis-based medicine with modern scientific methods


It has been a busy start to 2020 for XPhyto and it was quick to move amid the global coronavirus crisis

XPhyto Therapeutics Corp. -

Quick facts: XPhyto Therapeutics Corp.

Price: 1.93 CAD

Market: CSE
Market Cap: $111.96 m
  • Focused on formulation, clinical validation, and emerging European markets
  • Germany projected to have one of the biggest growing cannabis markets
  • Operates from a de-commissioned German Air Force command center and nuclear bunker

What Xphyto does:

XPhyto Therapeutics Corp (CSE:XPHY) is a science-focused cannabis company developing analytical testing, processing, and formulation capability in Canada, while in Germany, it is focused on and research, cultivation, extraction, import, distribution, and manufacturing.

The firm has two exclusive five-year engagements with the faculty of Pharmacy at the University of Alberta, Canada to provide certified analytical testing capability, as well as extraction, isolation, and formulation facilities, and drug research and development expertise.

XPhyto has also acquired 100% ownership of the German cannabis company Bunker Pflanzenextrakte GmbH. The company operates from a decommissioned German Air Force command center and nuclear bunker near Munich, hence its name, which is the largest cannabis laboratory in Germany.

Europe’s biggest economy is projected to have one of the highest growth rates in the world for a cannabis market, with a 76.8% compound annual growth rate to reach $1.6 billion by 2022, according to research by Arcview.

The firm listed on the Canadian Securities Exchange (CSE) on August 6, 2019, under the trading symbol ‘XPHY’.

How is it doing:

It has been a busy start to 2020 for XPhyto and it was quick to make moves amid the global coronavirus crisis. 

In March, the firm said it was launching, via its German subsidiary Vektor Pharma TF GmbH, a new infectious disease program to address demand for antiviral treatments. The group is investigating the use of enzyme-targeted sensor-film technology for real-time detection of infectious diseases such as coronavirus. The aim is to develop a low-cost, point-of-care, rapid detection test.

Significantly, Vektor is also developing an epilepsy treatment using its thin-film delivery system, which is advancing apace.

On March 18, XPhyto said it will be advancing the program to clinical studies immediately after making significant progress and it was now finalizing the formulation and preparing for clinical studies in Europe in the second and third quarter of 2020.

XPhyto's CBD-based epilepsy treatment program is one of several dissolvable oral drug delivery initiatives for this year. Transparency Market Research estimates that the global market for thin-film drug manufacturing will be worth US$15.984 billion by 2024 and rising at a solid 9% CAGR between 2019 and 2024.

In January, the group's plans for the German market were also boosted when it revealed it had struck a three-year supply and distribution deal with Colombian cultivator PharmaCielo Ltd to serve its German medical cannabis business. PharmaCielo will supply oils and isolates for XPhyto's medical cannabis products, such as oral films, transdermal patches, and topical treatments.

As part of the deal, PharmaCielo was issued with 500,000 warrants as XPhyto raised C$2 million from a private placing to expand its EU lab processing and storage capacity. The funds will also be used for regulatory compliance, product development, manufacturing, and distribution.

For 2020 and beyond, XPhyto has prioritized near-term revenue generation via the import and distribution of medical cannabis products into Germany.

XPhyto wants to begin the commercial import of cannabis oils and isolates in mid-2020, with a three-year minimum sales target of around 30,000 kg for extracted products, including 99% pure CBD and THC isolates, broad-spectrum CBD oils, and full-spectrum THC oils.

In other developments this year, the firm also revealed that its German subsidiary Bunker Pflanzenextrakte has kicked off research and development of cannabis-focused beverages with the chair of the brewing and beverage technology at the Technical University of Munich (TUM) School of Life Sciences Weihenstephan.

Meanwhile, the German Federal Institute for Drugs and Medical Devices (BfArM)  granted Bunker Pflanzenextrakte a cannabis cultivation and extraction license for scientific purposes.

This, subject to security requirements, authorizes the company to cultivate and extract up to 70 different strains of Cannabis sativa and indica for scientific purposes at Bunker’s high-security facility in Bavaria.

In September last year, the group announced a two-year European consulting deal with international cannabis expert Stephen Schroeder to design the hydroponics and extraction facility.

The following month, XPhyto struck a deal with an undisclosed top cannabis grower to exclusively distribute cannabis flower, extracts, isolates and crystallites across Germany. The latter produces more than 100,000 hectares of medical-grade hydroponic high THC flower and THC cannabis strains for extraction.

Also in September 2019, the group said its pharmaceutical grade extraction and processing lab at the University of Alberta was ready for commissioning. The research will focus on treatments for inflammatory dermatology indications, oral and ingestible treatments for pain management and sleep disorders, it added. XPhyto is also in discussions with multiple potential third-party collaborators seeking cannabis-related contract research and development (R&D) services.

Inflection points:

  • More news on CBD-based epilepsy  and infectious disease programs
  • Start of commercial import of cannabis oils and isolates to Germany
  • Further build-out of European distribution

What the boss says:

In Xphyto's latest release on the launch of its a new infectious disease program, CEO Hugh Rogers told investors:

"In light of the pending global coronavirus disease pandemic and anticipated long-term growing demand for novel anti-viral and anti-microbial treatments, XPhyto is moving forward with an infectious disease-related research and development program," he said.

"XPhyto's thin-film drug delivery system is a platform technology capable of delivering various active therapeutic compounds for a broad range of medical conditions, including infectious disease."

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on 27/8/19

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