Zelda Therapeutics’ medical cannabis study results see shares pop
14:30 30 Nov 2016
Zelda reports positive results of its initial proof of concept study.
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Zelda shares have traded over 50% higher intra-day
Zelda Therapeutics (ASX:ZLD) has received positive results of its initial proof of concept study into the anti-cancer effects of its medical cannabis formulation.
Results show that Zelda’s formulation of THC-rich oil is significantly more potent at reducing tumour growth than pure THC and equally as potent as a standard chemotherapy drug, Lapatanib in reducing tumour growth.
The positive results provide support for Zelda to continue its program of study evaluating its THC-rich medical cannabis formulations as anti-cancer therapeutics.
Harry Karelis, executive chairman, commented: “We are very excited by the data generated in this preliminary study examining our cannabis extracts in well validated models of human breast cancer.
“This provides a solid foundation to continue to examine the anti-cancer effects of whole-plant cannabis extracts particularly as a combination therapy for cancer sufferers.”
Recently listed on the ASX
Zelda recently re-listed on the ASX following the finalisation of a reverse take-over.
The company raised the $4 million maximum allowed under its prospectus offering, transitioning Zelda into a publicly listed medical cannabis company.
The funds raised are to continue with pre-clinical research and development activities, fund human clinical trials and expand the management and/or advisory team.
Zelda was spun out of a successful U.S. based medicinal cannabis group - Aunt Zelda’s - that has treated hundreds of patients in California.
The company has exclusive, global access to an extensive set of human data related to medicinal cannabis-based formulations and treatment protocols.
This human data has been generated over several years by the Aunt Zelda’s group.
Study details
The initial proof of concept study was conducted on behalf of Zelda by world leading cannabis cancer researchers at Complutense University of Madrid.
This initial study compared the anti-tumour responses of pure tetrahydrocannabinol (THC) versus the Zelda Therapeutics formulation of THC-rich oil.
The study also compared the potency against a standard chemotherapy drug, Lapatanib, which is a tyrosine-kinase inhibitor of HER2 and EGFR, both receptors known to play an important role in breast cancer.
The study showed that Zelda’s formulation of THC-rich oil was significantly more potent at reducing tumour growth than pure THC and more importantly, was as potent as Lapatanib in reducing tumour growth.
Study goals
The ultimate aim of the work program is to licence this intellectual property to a major group better resourced to progress into formal human clinical trials in the area of cancer therapy.
As per the company’s business model, Zelda will benefit through structuring deals comprised of up-front payments, milestones and royalties from these licensees.
Analysis
This initial data is important as it supports the anecdotal experiences already seen in patients in California.
Future studies will examine the potential to significantly increase the anti-cancer effect of traditional chemotherapy drugs and is an exciting opportunity that can not only improve a patient’s quality of life but also potentially extend life expectancy.
The U.S. medical cannabis market alone is projected to be valued at over US$6 billion by 2018.
Zelda has a strategic focus on the development of treatments for skin conditions, cancer and insomnia.
Shares in Zelda are trading up 32% currently priced at $0.033 compared to its re-listing price of $0.025.
ZLD Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
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