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ASX small-cap AusCann Group ramps up cannabis research

Cale Kalinowski | January 25, 2019 | More on: AC8BOT

    

Cannabis-related research and development is booming at the moment as companies rush to capitalise on its gradual legalisation.

AusCann Group Holdings Ltd (ASX: AC8) has established a Perth R&D facility in a $5.25m acquisition that it hopes will strengthen its product pipeline. The site will focus on the development of ‘innovative formulations and dose forms’ for pharmaceutical applications.

The move shows AusCann is making moves to bolster its pharmaceutical development program, which it says sets itself apart from other Australian cannabis producers.

Fully funded by cash-on-hand, the facility will also require an additional $6 million of capital investment to get it up and running by the end of the year.

AusCann interim CEO, Dr Paul MacLeman said: ‘The acquisition of the research and development site is a major stepping stone for AusCann as it allows the creation of a fully integrated, state of the art facility for medicinal cannabis.’

The company is also gearing up for the launch of its hard-shell cannabinoid capsules this year, with production planned to begin in the middle of the year.

Meanwhile, medical dermatology company Botanix Pharmaceuticals Ltd (ASX: BOT) is also making headway on its clinical study for the treatment of atopic dermatitis with its BTX1204 product.

Botanix focuses on the application of cannabidiol for pharmaceutical applications. The company currently has four products in the pipeline which utilise its proprietary Permetrex™ technology for direct skin delivery.