Therapix Biosciences Ltd. (TASE: TRPH) (formerly NasVax) has invested $1.5 million in medical cannabis company LaraPharm Ltd. Therapix's share price rose 18.4% by mid-afternoon to NIS 0.99, giving a market cap of NIS 13 million.
LaraPharm is developing a formulation of THC, the active ingredient in cannabis, to work in an inhaler.
Therapix is investing all of its cash reserves in LaraPharm to acquire 49% of the company. The investment will be in milestone payments. "I don’t see this as a problem. we'll be able to raise more capital," said Therapix director and shareholder Dr. Ascher Shmulewitz.
THC is currently marketed as a pill, under the brand name Marinol. "We checked, and LaraPharm's product does not infringe on Marinol's patent," said Shmulewitz. "We have not yet examined in a clinical trial whether the formulation works on people, but we know that inhaling cannabis is the best way to consume it. After a short trial, we'll be able to commercialize the product to a drug company."
Another Israeli company is also investing in medical cannabis. In 2013, Proteologics Ltd. (TASE: PRTL) invested $125,000 in BreedIT Corporation (BRDT) at $0.06 per share. The share price of BreedIT, founded by chairman Itschak Shrem, has since risen 900%. Earlier this week, it signed a strategic partnership with an experienced Israeli medicinal cannabis grower Sheifa Le'Haim Ltd. to breed and own unique and hybrid cannabis seeds utilizing its advanced Intelligent Decision Support System.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2014
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