23 Jul 2019 Jane Whitmoore
Cannabis Research Company Intec Pharma Shares Drop With 81%
Intec Pharma, a company conducting research on cannabis, was unable to pass the final phase of their ACCORDANCE Parkinson's medication. The result – Intec's stocks plunged with 81 percent shortly after the results became public.
The cannabis industry relies on rigorous clinical trials to keep their name and reliability. The drug, which didn't pass the stage III clinical trials, was built on the "Accordion Pill platform technology," which has better effectiveness and longer retention.
The trials include over 3,000 patients and the time of the trial ranged from 12 months to four years. The companies that participated in stage III clinical trials, however, have a low passing rate of just 24 percent.
The primary modification that Intec made to its drug is to fold the biodegradable polymer into an accordion shape to slow down the release of the active compound, and also ensure consistent absorption.
The stock market hit that Intec took could initiate a more significant problem because cannabis companies rely on clinical trials results to hinge on the market and gather the much-needed funds for further product development. And as the cannabis market is new to traditional investors and the failure for one could be a fail for the entire cannabis industry.
Тhe news will most certainly affect the crypto companies in the sector. Over the last few years, there has been a boom of cannabis companies that wanted to raise funds through ICOs or through other available fundraising formats. We expect that the latest news will negatively affect such companies and their ability to attract investments as there is an anticipated disengagement of investors` interest.
Almost all cannabis-related trading on the stock market is on the red. Before the plunge, Intec traded for around $3.27. The fall quickly evaporated Intec's positions, lowering stock prices to $0,45. As of press time, Intec's stocks trade at $0.525.ICO news Cryptocurrency Crypto Market ICO news