Zelira Therapeutics Vaults 256% in ASX Share Price Run
Key Highlights :
In Bulls N’ Bears’ weekly look at the ASX’s best runners, cannabinoid-based biopharmaceutical company Zelira Therapeutics stormed into focus after its share price vaulted a whopping 256 per cent. It wasn’t so long ago that any mention of medicinal cannabis was met with either schoolyard giggles or deep suspicion of nefarious activity. But as Bob Dylan sang – with an imaginable waft of the green leafy kind – “the times they are a-changin’”. And the proof of that was in the hurtling ASX share price run last week of Perth-based biopharmaceutical company, Zelira Therapeutics.
The legalisation of medicinal cannabis in Australia in 2016 saw a rapid rise into the mainstream. A report released in May last year found that more than 248,000 prescriptions for medicinal cannabis were granted by doctors in the past five years – 85 per cent of which were given out since January, 2020. The industry generated more than $31 million in revenues in 2020-21 and employs more than 1400 workers. Spending on research and development in 2019-20 hit an estimated $62 million. These numbers are against a backdrop of significant opportunities for future growth, with medicinal cannabis now legalised in more than 30 countries and the global market projected to be worth a staggering US$62.6 billion (AU$94.7 billion) by next year.
Enter Zelira Therapeutics, who lit up the ASX boards this week. The company is in the game of research, development and importantly for its followers, the commercialisation of clinically-validated cannabinoid-based medicines. It is focused on developing and proving up its medicines for the treatment of a variety of medical conditions including insomnia, autism and chronic non-cancer pain, in addition to offering a variety of over-the-counter products. Zelira is now turning heads after its diabetic nerve pain drug, “ZLT-L-007”, bettered Pfizer’s multi-billion-dollar treatment known as Lyrica. The news triggered a stunning increase in its share price from 94 cents to touch $3.35. The results of the United States Food and Drug Administration (FDA)-approved study found ZLT-007 outperformed Lyrica in achieving a significant reduction in numerical rating score (NRS) pain scores and a decrease in symptom severity. The drug will now be moved into formal FDA clinical trials.
Other stock breaking out of the shackles last week included Solis Minerals, which bolted 221 per cent after signing an agreement to snare the Jaguar lithium project in Brazil. Rock-chip samples from the project recorded up to 4.95 per cent lithium, with a pegmatite body currently mapped over 1km of strike which is likely to be tested in Solis’ maiden drill campaign this month. Software company Webcentral, which manages domain names and IT services, also had a big week after an investment fund picked up five per cent of the company, running its shares up from 6.9 cents to 17.5 – a healthy hike of 154 per cent. Finally, Reach Resources ensured rare earths remain at the front of the market’s mind. It doubled from 0.006 cents to 1.2c on the back of its latest heavy rare earths samples from WA’s Gascoyne region that also contained high-grade niobium.
The legalisation of medicinal cannabis in Australia and Zelira Therapeutics’ success in developing a drug that outperforms a multi-billion-dollar treatment has seen the company’s share price vault 256 per cent. With such a price leap at the start of the drug’s regulatory journey, one can only imagine what stratosphere the stock might be inhabiting by the time ZLT-007 joins Zelira’s stable of available medications. Other ASX stocks that saw significant increases last week include Solis Minerals, Webcentral, and Reach Resources. With a promising future ahead, it might not be a bad ploy to keep your eyes peeled for niobium finds.
