Emerald Clinics Ltd (ASX:EMD) is different from its cannabis sector peers in that it operates specialist cannabis clinics for patients to gather real-world evidence.
There is a massive evidence gap for cannabinoid products and this creates significant challenges for stakeholder adoption
The company opened its first clinic in Perth’s West Leederville in December 2018 and now has three more, in Sydney’s Woolloomooloo, Richmond in Melbourne and Tintenbar in New South Wales.
Emerald’s growth prospects lie not only in consultation fees but accruing data on how the patients are faring under the various drugs and dosages.
The company’s plan is to sell this growing data to parties such as drug developers, who can use the stats as an alternative to expensive formal clinical trials.
Emerald’s evidence generating care model
Emerald managing director and chief executive officer Dr Michael Winlo recently said: “We believe robust and ethically-sourced clinical evidence is vital for medicinal cannabis to be considered a mainstream medicine and Emerald is well-positioned to be a key supplier of this information covering appropriate prescribing and safe monitoring.”
Emerald’s potential revenue streams
Emerald recently entered into a clinical trial research agreement with Zelira Therapeutics Ltd (ASX:ZLD) to test a medicinal cannabinoid oil formulation in chronic pain participants.
The first of its kind clinical trial is designed with a primary end-point of assessing the efficacy of a full spectrum plant-derived cannabis formulation containing THC and CBD to reduce opioid dependence in chronic non-cancer patients.
Chronic pain patients in Australia – market size