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Pharma & Biotech

Oxford Cannabinoid makes progress on all drug development programmes

Research costs of early £1m went towards its four cannabinoid prescription drugs in the first half of its 2021 financial year

Pharmaceutical company Oxford Cannabinoid Technologies Holdings PLC (LSE:OCTP, OTCQB:OCTHF) said it made progress on all four of its drug development programmes with two key clinical trials set for this year.

The group which is developing prescription cannabinoid medicines said OCT461201, a cannabinoid-like compound for neuropathic and visceral pain, is expected to enter phase 1 clinical trials in Q1 2023. Meanwhile, OCT130401, a combination of inhaled phytocannabinoids, is due to start phase 1 clinical trials in Q4 2022.

Oxford Cannabinoid made a £2.03mln loss in the first six months of its 2021 financial year, including research costs of £934,500, a third of which went to its OCT461201 drug.

The company said it continues to expect revenue generation to begin in 2027 and secured a £2.6mln contract research agreement with Evotec subsidiary Aptuit in the last financial period.

“The group has continued to build on the positive start made to the current financial year," said John Lucas, chief executive officer of Oxford Cannabinoid.

"During the period, progress was made on all four of the group's programmes, particularly regarding the group's lead candidate OCT461201: a cannabinoid-like compound for neuropathic and visceral pain”,

“The board remains confident that OCTP is well placed to benefit from the opportunities that lie ahead. The fundamentals of the group remain strong, delivering against the strategy laid out in the IPO prospectus and with a strong financial base."

Oxford Cannabinoid said it continued to hold strong liquidity, with cash reserves of £12mln, following cost-cutting measures which included the closure of its London office.

The company’s share price was 2.04p in early trading, down 1.69%.

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