Cannabis Science Inc (OTCMKTS:CBIS) continues to manifest the turnaround we have been writing about in our recent coverage. Remember, this is a stock we were overtly bearish on from March through October. But recent events have begun to shape a very different story, and the stock has responded, powering higher, nearly doubling in the past 4 sessions.

This week has offered another strong catalyst to shape that narrative, with the company announcing that its research staff is reportedly nearing completion of a novel new cannabinoid formulary to treat the Asthma and Chronic Obstructive Pulmonary Disease (COPD) Overlap Syndrome (ACOS) with clinical trials to follow upon completion. This continues the company’s newfound momentum in terms of substantive operational pursuits and press. The action in the company’s shares is hopefully functioning to deliver management a healthy dose of positive reinforcement for this new direction.

Cannabis Science Inc (OTCMKTS:CBIS) defines itself according to the narrative of a leading-edge researcher and designer of cannabinoid solutions to health problems.

CBIS is involved in developing medicines for autism, blood pressure, cancer and cancer side effects, as well as for other illnesses comprising for general health maintenance. It also develops CS-TATI-1 for newly diagnosed and treatment-experienced patients with drug-resistant HIV strains, as well as those intolerant of available therapies; CS-S/BCC-1 to treat basal and squamous cell carcinomas; and a proprietary cannabis-based therapy for neurological conditions.

In addition, CBIS offers an online video-based medical cannabis education system, including courses, such as medical cannabis law, medical marijuana, cooking, horticulture, and bud tending; and manufactures and distributes specialty horse and pet grooming and topical applications. It has a license agreement with Apothecary Genetics Investments LLC to produce various brand formulations for California medical cannabis market.

Find out when $CBIS stock reaches critical levels. Subscribe to Right Now by entering your Email in the box below.

CBIS management notes in its most recent release that this new direction positions the company in pursuit of “an immense market segment”. Indeed, the COPD market consists of approximately 5 million diagnosed cases in the US alone. The 20% prevalence of the Asthma/COPD Overlap Syndrome could shape a known market of as much as 5 million doses per month.

“Our recent development of our MDI and Rescue Inhaler medications for these patients in part is the reason this research evolved to treat this under-diagnosed syndrome. While our formulations for these medications achieve the desired effects for the illness targeted as a rescue medication they cannot treat effectively the diagnosis of the Overlap Syndrome. More interesting is the prevalence of ACOS observed among populations of patients diagnosed with COPD. Our new formulary will target four aspects of this illness inflammation, airway constriction, capacity, and anxiety. Cannabinoid extracts have many unique properties as well as an inflammatory agent these extracts also do aid in controlling anxiety and it is our belief lung capacity. The strain we are working with is one that has lung expansion properties, this certain strain chemical makeup causes the lungs to expand or hyper-inflate once the dose has been administered and over a subscribed to therapy term is expected to build back lung muscle strength in the weakened lungs along with increased volume capacity as the lungs are stressed much like breathing exercises would do for the patient that no longer has the ability to effectively do deep breathing exercises,” stated Chief Medical Officer, Dr. Allen Herman.

According to the company’s release, it is interviewing test subjects for clinical trials of this new formulary now, the criteria being used is patients using supplemental oxygen with SpO2 (blood oxygen saturation level) under 95 % with oxygen and under 87% without oxygen. The goal of this trial is to observe for the SpO2 levels to increase over the period of the trial as well as mental health by way of easing anxiety associated with Asthma/COPD flare-ups, this trial is to monitor the effects of various cannabinoid levels and combinations with the patients who were chosen.

At this time, carrying a capital value in the market of $153.4M, CBIS has virtually no cash on the books, which compares with about $2.3M in total current liabilities. CBIS is pulling in nominal trailing 12-month revenues (just $7K), and even that number has been declining. However, its recent moves suggest potential to drive future growth, which shapes this story in some interesting ways going forward. Sign-up for continuing coverage on shares of $CBIS 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 $CBIS, either long or short, and we have not been compensated for this article.