Shares of Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) are ripping today in reaction to the company's announcement of positive phase 2 trial results for its drug aiming to treat "rare, chronic, serious inflammatory and fibrotic diseases." Since this drug interacts with the body's natural endocannabinoid system, many investors are asking - is Corbus Pharmaceuticals a cannabis stock? Kind of.
Corbus' drug, called "anabasum," is a "novel synthetic oral endocannabinoid-mimetic drug designed to resolve chronic inflammation and fibrotic processes." As a endocannabinoid-mimetic drug, it binds with the body's cannabinoid receptors in order to take effect. By binding to the CB2 receptors on immune cells and fibroblasts, anabasum is far more effective in treating the above indications than the placebo.
In addition to being highly effective, "anabasum was well tolerated with no severe or serious side effects associated with the drug. No subjects dropped out." This is a great sign given how terrible the side effects of some drugs can be.
Corbus Pharmaceuticals Upside
According to the Cystic Fibrosis Foundation Patient Registry, in the United States, more than 30,000 people are living with cystic fibrosis (more than 70,000 worldwide). Additionally, approximately 1,000 new cases of CF are diagnosed each year.
The global cystic fibrosis therapeutics market is expected to reach USD 13.9 billion by 2025, according to a new report by Grand View Research. If this drug makes it through to FDA approval, "it could easily leap to $1 billion in annual sales," according to estimates from the Motley Fool.
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