Vitality Biopharma Inc (OTCMKTS:VBIO) is a low-priced trading equity that has grabbed hold of the attention of traders during the stock’s recent bounce. The company has been no stranger to investor relations activity, but also represents a potentially interesting story. The latest from the company is its announcement of additional positive preclinical efficacy results for the treatment of colitis.
According to the release, “Vitality Biopharma has developed a new class of cannabinoid prodrugs, known as cannabosides, which upon ingestion can be targeted and limited to the gastrointestinal tract, thereby avoiding drug psychoactivity and unforeseen side effects. The Company has now successfully completed studies that demonstrate the efficacy of multiple different cannaboside drug formulations for treating preclinical models of colitis. Multiple different cannaboside drug formulations were able to reduce weight loss, decrease damage to the colon, and markedly improve gastrointestinal health compared to the placebo controls.”
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.
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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As noted above, this small float well-promoted play has recently found some support and upside activity based on its announcement of additional positive preclinical efficacy results for the treatment of colitis.
The company notes, in its recent release, that its positive results suggest that the company is “advancing cannabosides into first-in-man clinical trials and later will conduct proof-of-concept clinical testing for treatment of inflammatory bowel disease (IBD).”
The company further attests that its cannabosides may be especially useful for pediatric IBD, as they are designed to deliver cannabinoids to the gastrointestinal tract while avoiding drug psychoactivity. According to the Crohn’s & Colitis Foundation of America, approximately 1.6 million Americans currently have inflammatory bowel disease and this figure includes as many as 80,000 children.
“Many families who seek alternatives to standard pharmaceuticals, either because of perceived toxicity or because they have had an inadequate response to these drugs, have asked about the use of cannabinoids for the treatment of their IBD,” said Dr. David Ziring, a pediatric gastroenterologist at Cedars-Sinai Medical Center in Los Angeles, Assoc. Director of the Cedars-Sinai Pediatric Inflammatory Bowel Disease Program, and a consultant to Vitality Biopharma. “The prospect of gut-restricted cannabinoids that modulate the local gut immune system but avoid the traditional psychoactive effects of THC is compelling and timely, and could be very well received not only by patients and their families but also by other treating physicians.”
We’ve witnessed 17% piled on for shareholders of the listing during the trailing month, but this action is running counter to the larger trend in the name. That said, VBIO has evidenced sudden upward volatility on many prior occasions. Furthermore, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 110% above its longer run average levels.
This is particularly important with the stock trading on a float that is relatively small at just 18.5M shares. One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
Currently trading at a market capitalization of $36M, VBIO has a reserve ($531K) of cash on the books, which stands against virtually no total current liabilities. VBIO is pulling in trailing 12-month revenues of $144K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -41.7%. We will update the story again soon as developments transpire. 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.