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Thursday, 12/28/2017 11:18:05 AM

Thursday, December 28, 2017 11:18:05 AM

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www.cannabisfn.com/pivot-pharma-wraps-successful-2017/

The North American cannabis industry reached $6.7 billion in 2016, according to ArcView Research, which represented a healthy 30% growth rate over the prior year. Over the next three years, the analyst firm expects the industry to grow at a 25% compound annual growth rate to reach $20.2 billion in sales. One company, Pivot Pharmaceuticals Inc. (CSE: PVOT) (OTCQB: PVOTF), successfully completed an about-face in 2017 to focus exclusively on the explosive sector. In this article, we will review the company’s achievements and how its business model aligns with trends in the industry.
New Focus on Cannabis
Pivot Pharmaceuticals first announcement related to cannabis came on September 12, 2017. The company acquired worldwide rights and a patent for the proprietary BiPhasix™ Transdermal Drug Delivery technology, for the development of cannabis-related products. The technology has been shown to significantly enhance the bioavailability of drugs by transporting them effectively through the skin, and the drugs delivered in this manner can target peripheral areas of the body to deliver a payload through the skin without damaging the organ from repeated application.
The acquisition was intended to address cannabinoid delivery which is an overarching problem throughout the industry. Smoking is not necessarily a preferred delivery mechanism due mostly to side effects and health concerns, and ingestion is ineffective due to metabolic effects of the liver as well as inherent problems with the absorption of cannabinoids due to insolubility in water. So Pivot Pharma’s first move was to acquire a proven technology and focus it on cannabis. But the company was by no means done.
Pivot announced two weeks later the acquisition of worldwide rights to Solmic Research GmbH’s Solmic Solubilisation Technology. This is an oral delivery technology that makes cannabinoids water-soluble and protects them from degradation due to stomach acids and enzymes. The technology masks unpleasant odour and taste and improves stability of the mixture. Pivot is advancing several Natural Health Products as a result of this technology, including products intended for opioid addicts and cancer patients.
A few weeks later, in early November, Pivot entered into a binding agreement to acquire a third delivery technology, Thrudermic’s Transdermal Nanotechnology. This new technology allows Pivot to control and prolong the release of cannabinoid actives while maintaining high concentrations of the drug throughout the application period. Unlike BiPhasix™, the Thrudermic technology allows for more sophisticated systemic exposure from fast uptake to slow release.
Taken together, the three delivery technologies provide a wide array of options for development and commercialization of cannabinoid-based nutraceuticals and medicines. While many companies are focused on the production and sale of cannabis flower products, there is an increasing demand for more specific and refined products utilizing extracts from the cannabis plant.
Positioning for a Big Year
With some innovative delivery technologies in place, Pivot Pharma entered into another binding agreement, this time for the acquisition of ERS Holdings, LLC. ERS has a patented technology called Ready to Infuse Cannabis (RTIC) that changes cannabis oil extracts into a tasteless powder suitable for infusion into food and beverage products. Cannabis oils suffer from the above-mentioned bioavailability issues, but also have a notorious taste problem. The RTIC technology solves both issues, and opens up a whole world of consumer product possibilities for Pivot Pharmaceuticals.
In a final move before the end of the year, the company entered into a binding agreement to establish a California-based business to accelerate the commercialization of the newly-acquired RTIC powders. With California poised to fully legalize cannabis on Jan. 1, 2018, thereby becoming the world’s largest legal cannabis market, Pivot is looking to quickly capitalize on the innovative technology.
Looking Ahead
Pivot Pharmaceuticals Inc. (CSE: PVOT) (OTCQB: PVOTF) just recently started trading on the Canadian Securities Exchange, opening up the company’s stock to a whole new market of cannabis-savvy investors. Additionally, the company announced a 45-day standstill agreement that will end on February 6, 2018. In the interim, Pivot hopes to finalize a partnership with a “…best-in-class partner to monetize our patented technologies…” The agreement means that Pivot will not enter into or negotiate any other partnerships within the 45-day period. Read into this what you will, but with Canada and California both legalizing adult use of cannabis in 2018, the year ahead should be full of interesting developments for Pivot Pharmaceuticals.
For more information, visit the company’s website at www.pivotpharma.com.