Oxford Cannabinoid Technologies Holdings PLC (LSE:OCTP, OTCQB:OCTHF) (OCTP), which is developing prescription cannabinoid medicines targeting the pain market, has issued a positive trading and operational update for the six months ended 31 October 2022.
In the statement, Clarissa Sowemimo-Coker, Interim CEO of OCTP, said: "We are incredibly pleased with the ongoing progress and the fact that we remain on track to meet our financial and operational targets. This is a big achievement and is testament to the adaptability, skill, and 'can do' attitude of Dr Valentino Parravicini, his team, and our external partners."
"As OCTP nears a critical juncture in its journey to introduce prescription cannabinoid medicines to the US$ multi-billion pain market, we are carefully managing cash and are well placed to deliver on our key objectives. I look forward to updating the market on our continued progress with the half-year results," she added.
OTCP said its budget review, announced on 26 August 2022, realigned its development and expenditure programme to focus on bringing the company's lead compound, OCT461201, through Phase I clinical trials. Taking this action meant that funds, which would otherwise have been fully utilised by April 2023, are now expected to extend to Q4 2023, it added.
Importantly, the company said it remains on track and on budget to commence clinical trials for OCT461201 in January 2023, with publication of its interim results for the period ended 31 October 2022 also anticipated in January 2023.
During the six-month period, OTCP incurred around £3.1mln of R&D costs, with progress being made on all four programmes. As of 31 October 2022, OCTP and its subsidiary, Oxford Cannabinoid Technologies Ltd had total cash reserves of approximately £5mln and remained debt free.
Operational update
OCTP said its operational progress has been consistent with its expectations and the company's board remains confident that OCTP will achieve the milestones set out in its current development timeline.
Work under the group's £2.6mln contract research agreement with Aptuit (Verona) SRL, a subsidiary of Evotec SE, which commenced in July 2021 is now almost complete. Evotec will provide the company with a submission-ready regulatory document by the end of December 2022 and will deliver an approved batch of drug products to the OCT461201 Programme 1 Phase I clinical trial unit during Q1 2023, OCTP said.
In addition to the progress made on OCT461201, it added, pre-clinical work for OCT130401 is almost complete, ensuring that Programme 2 will be Phase I ready in early 2023 at which time further development will be placed on hold in order to preserve cash.
Development work for Programmes 3 and 4 has also continued, and the company said it is still on target to be at the pre-clinical stage (for programme 3) and lead stage (for programme 4) with these programmes by Q2 2023.