As many of you may have noticed, there's been more and more going on in Israel surrounding the world of cannabis research and more. Israel has been home to biotech and pharmaceutical industry giants for quite some time now, such as Teva Pharmaceuticals' (NYSE:TEVA) research and development (R&D) operations.
We're not concerned with companies like Teva Pharmaceuticals until they start looking further into the cannabinoid-based treatment of serious ailments. Until then, we're concerned with companies like Therapix Biosciences Ltd. (TASE:TRPX) (NASDAQ:TRPX) that are based in Israel, and focused on developing cannabinoid-based drugs.
According to the company's description, "Therapix has initiated two internal drug development programs based on repurposing a U.S. Food and Drug Administration approved synthetic cannabinoid (dronabinol). These two developments include: Joint Pharma developing THX-TS01 targeted to the treatment of Tourette Syndrome, and BrainBright Pharma developing THX-ULD01 targeted to the high value and under-served market of mild cognitive impairments."
Not only is Therapix based in Israel, but it also trades on the Tel Aviv Stock Exchange. In addition to the company's listing in Tel Aviv, the company just recently offered American Depository Shares (ADSs) on the Nasdaq. The underwriters of the offering on the Nasdaq also fully exercised their over-allotment options entitling them to purchasing an additional 300,000 ADSs, signaling heavy investor demand for the Israeli-based company.
While there are not many cannabis companies listed on the Tel Aviv Stock Exchange right now, we expect more to seek capital in the public markets as they get further into the development stages regarding cannabinoid drugs. Bringing a drug to market is an extremely capital-intensive process, and offering shares to the public is one of the commonly used methods for raising the funds.
Now read about how Israel is leading the charge in cannabinoid research.