Vitality Biopharma Inc. (OTCMKTS:VBIO)
Vitality Biopharma Inc. (OTCMKTS:VBIO) shares gained 21.21% after the legal cannabis company announced a break-through in biosynthesis technology. The company has developed a proprietary technology that can modify cannabinoids to create pharmaceuticals that have no psycho-activity.
The breakthrough technology strengthened investors’ confidence as seen by the stock rising to $1.60 a share. However, Vitality Biopharma Inc. (OTCMKTS:VBIO) continues to trade in a downtrend after losing more than 40% in market value since the start of the year.
Vitality Biopharma needs to reaffirm its prospects in the cannabis business, if it is to prevent a further slide in VBIO shares. The biosynthesis technology has the potential to strengthen investor confidence as the company moves to unlock the power of cannabinoids in the treatment of various neurological and inflammatory disorders.
“With our cannabinoid pharmaceutical program, we are quickly moving from ‘bench to bedside,’ so it’s important to recognize technical milestones like this one that have enabled and sped our progress. Our team first pioneered enzymatic biosynthesis methods for cannabosides and now has made their production far more efficient and scalable,” said CEO Robert Brooke.
Vitality Biopharma Inc. (OTCMKTS:VBIO) biosynthesis technology uses small molecule glycosylation to create new compounds known as cannabinoid glycosides or cannabinoids. The company has reportedly improved the technology 15-fold.
VBIO Stock Price Target
Separately, equity research firm SeeThruEquity has initiated coverage of Vitality Biopharma stock with a 12-month price target of $2.40 a share. The share price target according to the firm is based on the company’s developments on new class of cannabinoid pharmaceuticals called cannabosides.
The company is currently developing cannabosides that have the potential to treat inflammatory bowel disease including ulcerative colitis and Crohn’s disease. Its lead candidates include VITA-100 for the treatment of IBD and NBS and VITA-210 for the treatment of irritable bowel syndrome.
The inflammatory bowel disease market presents Vitality Biopharma Inc. (OTCMKTS:VBIO) a $9.7 billion market opportunity as there are 1.6 million Americans with the condition.
“We are updating our target to $2.40 following recent results, management commentary on efforts to expand its IP position, recent financing activities, and the disclosure of positive preclinical data for cannabosides in IBD models,” SeeThruEquity in a statement.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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