For traders looking for recent surging momentum, Vitality Biopharma Inc (OTCMKTS:VBIO) shares just leapt into action last week, ramping back above key longer-term support along the $1.50/share level. The move takes the stock back above its key 200-day simple moving average for the first time since March. The action is at least partly in response to news that the company has received approval from both the U.S. Drug Enforcement Administration (DEA) and the State of California Research Advisory Panel which permits the Company to continue development of its novel cannabinoid pharmaceutical prodrugs.
According to the release, “Despite cannabis attaining legal status within the State of California and in many other states across the U.S. for medical and recreational purposes, pharmaceutical research and development continues to be closely regulated by the DEA and the U.S. Food and Drug Administration (FDA). Vitality initially worked with the DEA to ensure adequate on-site measures are in place to prevent diversion of Schedule I controlled substances, the most regulated tier of controlled substances in the US. In addition, the California Research Advisory Panel, a part of the California Attorney General’s Office, also approved Vitality’s cannabinoid pharmaceutical development activities.“
Vitality Biopharma Inc (OTCMKTS:VBIO) frames itself as a company that focuses on the development of cannabinoids for the treatment of neurological and inflammatory disorders, such as inflammatory bowel disease and multiple sclerosis in the United States. VBIO is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders.
VBIO’s products in the pipeline include Cannabosides – VITA-100 for gastrointestinal disorders, including inflammatory bowel disease and irritable bowel syndrome; Cannabosides – VITA-210 for muscle spasticity in multiple sclerosis and rare white matter disorders; and Cannabosides for epilepsy, schizophrenia, substance abuse, and Huntington’s disease.
Vitality believes that its prodrug Cannabosides could enable targeted delivery of THC molecules into the gut, which would enable higher local concentrations for pain and inflammation in the gastrointestinal tract. The company plans to begin Phase I/II studies this year while taking pathways that involve shorter trials through acute dosing regimens.
According to company press materials, “Vitality Biopharma is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders.”
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The chart shows 37% during the past month in terms of shareholder gains in the name, a rally that has pushed up against longer standing distributive pressure in the stock.
However, the name has benefitted from a jump in recent trading volume to the tune of approaching 190% above the average volume levels in play in this stock over the longer term. This should not be overlooked with a float in play that’s extremely small – at just 18.5 million shares.
Robert Brooke, CEO and Co-founder of Vitality Biopharma adds that, “Our team first pioneered a novel biosynthesis process for our cannabinoid prodrugs, and now they’ve successfully scaled it in a way that could enable widespread supply for clinical trials and even commercialization. This puts us in an enviable position within our industry, and we look forward to seeing what else can be achieved in the months and year ahead.”
At this time, carrying a capital value in the market of $38.2M, VBIO has a chunk ($1.4M) of cash on the books, which is balanced by virtually no total current liabilities. VBIO is pulling in trailing 12-month revenues of $109K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling precipitously. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $VBIO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $VBIO, either long or short, and we have not been compensated for this article.