Written by ι Stock House Group Staff — February 21, 2013
When Colorado and Washington passed legislation making marijuana legal for recreational use in the November elections, the rush was on – the Green Rush that is. All told, 18 states voted to legalize marijuana for medicinal purposes, and two elected to legalize it altogether. Before the elections, companies that are in the medical marijuana industry, saw a slow rise in price per share, and then as investors figured out the huge upside this industry has in its near and long term future, one by one, stocks in the sector started to see even bigger gains.
In late January and early February, companies like Medical Marijuana, Inc. (OTC Pink: MJNA) and Cannabis Science, Inc. (OTCQB: CBIS) saw a nice spike in their price per share and strong volume pouring into the stock. This, of course, sent investors looking for other stocks in the sector and set off a much deeper look into the long term potential this industry offers.
The medical cannabis industry was valued at $1.3-billion in 2011, and recent projections have ballooned to almost $9-billion by 2016, with more and more states taking a long look at legalizing marijuana for medicinal purposes or decriminalizing the use altogether. Dan Rush, head of the United Food and Commercial Workers Union, recently told Reuters that he believes the medical cannabis business could rival the size of the U.S crop or alcohol industries.
The trick to investing is finding long term growth and success with companies that offer a real future. So, with the latest political climate easing on the legalization of marijuana, what better time to look past the dispensaries and road-side stands to find companies in the industry that can offer real longevity.
Two companies, one well known in the industry, and another, a little known, diamond in the rough, have an opportunity to capitalize on the interest pouring into the sector. These stocks should see long term success because they are engaged in the science behind the drug and its medical applications.
Everyone is familiar with Cannabis Science, Inc., a developmental stage company, engaged in the development, production, and commercialization of phytocannabinoid-based pharmaceutical products. CBIS primarily focuses on developing medications to treat autism, blood pressure, cancer and cancer side effects, HIV and other illnesses.
But, not many are familiar with Nuvilex, Inc. (OTCQB: NVLX) a biotechnology company that has recently entered the sector through its new subsidiary, Medical Marijuana Sciences, Inc., to study the medical applications of marijuana and develop treatments for serious human diseases. Company officials think NVLX can become a leader in the industry because of their work and research in clinical trials.
Medical Marijuana Sciences, Inc. will be focusing initially on developing treatments for brain cancers, including glioblastoma multiforme, which are based on cannabinoids.
Nuvilex’s CEO Dr. Robert Ryan said in a February 14, 2013, press release…
“Cancer is one of the most feared diseases affecting mankind. Over the years, a substantial amount of information has appeared in the scientific literature illustrating the cancer-killing activity of naturally-occurring cannabinoids, including THC and CBD.
Therefore, development of cancer treatments by our subsidiary, Medical Marijuana Sciences, Inc. based on such cannabinoids is a fruitful avenue to pursue in Nuvilex’s effort to enhance the arsenal of treatments currently available for these devastating and deadly diseases.”
Nuvilex, Inc. is an international biotech and clinical stage provider of natural products and cell and gene therapy solutions for the treatment of human diseases. It will bring its expertise in science to the sector through the subsidiary, which will develop treatments for human diseases by employing cannabinoids from marijuana (Cannabis sativa).
Nuvilex’s Dr. Ryan said of the move into the industry, “The new subsidiary is a means to further employ our core technologies to capitalize on the rapidly growing medical cannabis industry and provide new products for unmet medical needs.”
The Company has expanded to increase its natural product based footprint through medical marijuana studies and is becoming an international biotechnology provider of live, therapeutically valuable, encapsulated cells and services for treatments, research and medicine. Nuvilex’s offerings will ultimately include cancer, diabetes and other clinical treatments.
The Company’s COO, Dr. Gerald W. Crabtree added, “We believe that by leveraging our in-house expertise and experience obtained from our completed Phase II clinical trial on our living cell encapsulation technology coupled with published research demonstrating the therapeutic benefits of cannabinoids on a variety of cancers, will immediately position Nuvilex as a leader in the medical cannabis industry.”
Dr. Gerald Crabtree served as the project manager for the development of the anti-cancer agent Taxol with Bristol-Myers Squibb (NYSE: BMY).
There are some fundamental differences between Nuvilex’s move into the space versus some of its industry peers. While most other medical marijuana companies are technology companies, Nuvilex is a true biotechnology company. Although not the exact same, the encapsulation experts at Nuvilex plan to investigate the use of similar technologies in their medical marijuana research.
Current studies indicate cannabinoids appear to kill cancer cells by binding to specific receptors on the surface of cells. Following this binding, cancer cells undergo a series of biochemical processes that ultimately lead to “programmed cell death,” also known as apoptosis.
This appears to be a natural fit for Nuvilex. With its research and the results driven by two successful cancer trials, this move into the medical marijuana sector could produce long awaited answers in the world’s fight against all types of cancer.
It is the fact that Nuvilex, Inc. is in clinical trials with its cell encapsulation technology that makes NVLX worth a good long look as a mainstay in the industry. The research and expertise behind this science will now be employed at Medical Marijuana Sciences, Inc. and could potentially make this your first true diamond in the rough for 2013.