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Cannabis Company PlantEXT Gears up to go Public in Canada

The TSX Venture Exchange (Toronto Stock Exchange) is considered to be a junior exchange, created to help companies gain capital. Many cannabis businesses are finding this exchange a safe place to get their start. Not only is Canada more cannabis-friendly than other financially-stable countries, but this exchange welcomes young companies, which really serves the budding cannabis community. One planning to list here in June of 2019 is called PlantEXT, an Israeli-based company that uses medical marijuana to create treatments for inflammation-related diseases like Inflammatory Bowel disease (IBD), Crohn’s and Colitis. The operation is led by former Teva Pharma Senior VP and General Manager, Doug Sommerville.

Doug Sommerville, CEO of PlantEXT

As many cases go, it wasn’t until Sommerville had a personal connection to cannabis that he warmed up to the idea of it. His sister-in-law was suffering from internal medical complications when her holistic-style doctor suggested she try cannabis. After testing out various combinations, the plant became her savior.

During a business trip to Israel from his home base in Canada, CEO Sommerville took a sit down interview with TipRanks to discuss the future of his company, which Sommerville says is unique in that its medical claims are based in clinical trial. While a number of other cannabis companies suggest their products have healing powers, Sommerville says there’s no legitimate science to back it up. That’s where he brings in his expertise.

Our focus is on becoming a pharma company with cannabis as our API (Active Pharmaceutical Ingredient). Doctors will not prescribe or support cannabis until two things happen: Number 1 — they don’t want patients smoking cannabis. That’s something that just goes against their basic philosophy. And number 2, they want to see some clinical evidence that it works. In my case, I have to admit three or four years ago I was a bit of a naysayer when it came to cannabis. I was a pharma person, so I really wanted to know where the evidence was,” Sommerville said.

PlantEXT is currently valued around 32.5M market cap and Sommerville predicts to increase that to around $50M or more by the end of 2021 with a goal to launch a new product every quarter.

The team is comprised of a slew of doctors and researchers, many of which came over from Teva pharmaceuticals after having held positions there for many years, some even decades. The founder, Dr. Oded Sagee is a plant physiologist from Israel. PlantEXT is partnering with a cannabis pharmaceutical company called Panaxia (noted in one of our other cannabis pieces) in addition to another called called Rafa, which will be responsible for the distribution.

We’re trying to really fill an unmet need for patients right now in the U.S. There’s almost $10 billion spent on medication for IBD inflammatory bowel disease […] These drugs are somewhat effective but they’re very hard on the system. They’re very difficult. Many are steroid based and very difficult on the body when you take them. We’re also seeing things like very expensive drugs – Humera beginning to be used. But we actually want to replace that with a cannabis product. Natural products. With a formulation. Specifically. Developed for IBD.”

Many of the products in question will be available in the form of suppositories, which can be more effective and direct for those suffering with bowel diseases. Sommerville says in Europe, the suppository is so popular, that people even take medications for the common cold rectally.

The company is also gearing up to release a 100% natural product for psoriasis, which is supposed to take down swelling and redness. While other companies sell over-the-counter medications to combat the skin disease, Sommerville says his product is the first to come out with compelling clinical evidence as to why the product works.

Sommerville celebrated the legalization of cannabis exports from Israel. A law passed by Israeli officials in December will help the country get ahead in the cannabis industry.

“With the new change in the Israeli export regulations, it opens up opportunities. Now, the other country has to receive the export, so you need both ends of the scale. But it starts with the ability to export. I am predicting in not many years, this is going to become a fairly open border industry,” Sommerville said.

He may be right. Countries like Czech Republic, Germany and  Australia are all accepting cannabis exports from Canada. It is yet to be seen just how big the industry will get, but many believe it will entirely disrupt the alcohol and pharmaceutical industries. You can keep it here at the TipRanks blog for more niche cannabis news and write-ups about companies in the space.

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