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Medical cannabis 101, the plant used in medicine for 12,000 years: ASX Plays

Published: 07:04 29 Sep 2017 BST

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The medical cannabis sector is attracting investor attention

The potential uses and applications of medical cannabis are very new to most, but a look back through history highlights that the cannabis plant has provided humankind with food, fibre and medicine for over 12,000 years.

The global sentiment towards medical cannabis is changing with an increasing number of jurisdictions legislating in favour of the use for medical purposes.

Medical cannabis use is now approved in Austria, France, Germany, Israel, Italy, the Netherlands, U.S. (around half of the states), Canada, Czech Republic, North Korea, Spain, Uruguay, Chilé, Turkey and Australia.

There is significant clinical evidence demonstrating the medical benefits of medicinal cannabis in respect to the treatment of chronic pain, neuropathic pain, as anti-emetics in the treatment of chemotherapy-induced nausea and vomiting and for improving patient-reported multiple sclerosis spasticity.

Moving back home, with over 5 million patients suffering from these conditions in Australia alone, this provides an opportunity for companies operating in the sector.

Cannabis 101

Cannabis is a flowering plant with evidence suggesting it has been used for medicinal purposes for millennia in cultures throughout the world.

The plant contains over 500 natural compounds, including 104 identified cannabinoids, which include the widely publicised Tetrahydrocannabinol (THC) and Cannabidiol (CBD).

Different cannabinoid receptors have been identified in the human body to date, such as CB1 and CB2.

These receptors are located predominantly within different parts of the central nervous system and the immune system, among others.

Cannabinoids and the human body

The interaction of the plant derived cannabinoids with these receptors mimics the naturally occurring Endocannabinoids produced in the bodies of humans and animals.

The cannabinoids are able to bind, or affect the binding of other compounds in the body, with these specific receptors, with different cannabinoids having different physiological effects depending on which receptors they interact with.

For example, THC binds to receptors in the brain whereas CBD interacts with other receptors located throughout the body.

Different types of medical effects can be achieved through using differing quantities of cannabinoids in the cannabinoid medicines.

Medical cannabis can be delivered orally, topically via skin creams and transdermal patches, ingested or vaporised for respiratory delivery.

ASX Medical Cannabis Plays

There are over a dozen ASX-listed companies focused on the medical cannabis sector, for both humans and animals.

Today we will review three.

AusCann Group Holdings Ltd (ASX:AC8) has an aim of producing and providing high quality, economical and clinically validated cannabis medicines to patients.

AusCann has built a strong team of experts and partners with international connections, including Canopy Growth Corp (TSE:WEED), the largest producer of medicinal cannabis in North America.

WATCH NOW: Auscann Group positioned to be a leading supplier of Australian cannabinoid

READ NOW: AusCann Group granted Australian medicinal cannabis manufacturing licence

ACCESS ALL: Click here for all AusCann editorial by Proactive Investors Australia

The Hydroponics Company (ASX:THC) is at the forefront of developing a leading, diversified worldwide cannabis business, focused on three core business units.

These include:

- The development and delivery of medicinal cannabis;
- Manufacturing and distribution of hydroponics equipment, materials and nutrients; and
- Large scale hydroponic greenhouse design and construction.

The company is actively developing plant breeding technology to target multiple markets for high purity cannabidiol, a new class of medicinal product that can be used to target dementia, epilepsy and other neurological disorders.

READ NOW: The Hydroponics Company identifies potential medical cannabis partners

ACCESS ALL: Click here for all The Hydroponics Company editorial by Proactive Investors Australia

Zelda Therapeutics Ltd (ASX:ZLD) is focused on developing a range of cannabinoid-based formulations for the treatment of a variety of medical conditions.

The company has a dual strategy, firstly with a human clinical trial program focused on insomnia, autism and eczema with activities in Australia and Chile.

Secondly a pre-clinical research program examining the effect of cannabinoids in breast, brain and pancreatic cancer.

Zelda has partnered with the world’s leading cancer cannabis researchers at Complutense University Madrid in Spain.

READ NOW: Zelda demonstrates successful results treating autism with medicinal cannabis

ACCESS ALL: Click here for all Zelda editorial by Proactive Investors Australia

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