CS MEDICA: Groundbreaking discovery in the natural cannabinoid CBD’s activity in the body

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CS MEDICA A/S (“CS MEDICA” or “the Company”) announces today that the Company has made a groundbreaking discovery in the natural activity of cannabinoid CBD in the human body. The discovery shows that the efficacy of the cannabinoid CBD, not only depends on the raw material of CBD but also on the different production methods. With this new data, CS MEDICA will review its current business model to incorporate the discovery and how to capitalize on it in the future. 

In CS MEDICA’s continual research on the efficacy of cannabinoids from the cannabis plant, the Company evaluated the current market of CBD isolate (98% pure CBD) and sourced CBD Isolate from different manufacturers meeting their preliminary requirements. Prototypes of the company’s Arthritis Gel were developed using the different CBD isolates and researched in a pilot study, measuring the efficacy up against each other.

Pain relief from CBD & efficacy
Pain relief is achieved when CBD interacts with the receptor in the body. CBD interacts mainly with the receptors of the endocannabinoid system CB1 & CB2. CBD also interacts with the receptors for pain: CB1 & CB2, PPARα, GPR55, GPR18, TRPV1, TRPV2, TRPV3, TRPV4, TRPM8, Cav3.2, GlyR, α2r, when CBD is natural – whereas synthetic CBD is found only to interact with CB1 & or CB2. These receptors are found in all the body’s tissue and organs.

The access to receptors for local pain is optimally accessed through the skin, with a bioavailability (the body’s % utilization of the CBD) up to 45%. In comparison oral intake (taken via mouth) only meets 6-13% in bioavailability[1]. The bioavailability of CANNASEN®CBD Arthritis Gel has a very high bioavailability of 43%, which has been confirmed in an Academic Study on 6 healthy humans performed by Mittal Clinical Institute sponsored by CS MEDICA.

CBD isolate pilot study
In the investigation of the difference between the various CBD isolates tested in the pilot study, CS MEDICA found that the specifications of the CBD Isolate were identical, but when the CBD structure was studied on a micro level, it was discovered that the structure where not identical:

In further studies on the difference between the natural CBD isolates it was discovered that the production process has an impact on the CBD activity. The current knowledge of triggers in the natural CBD has now been implemented in CS MEDICA’a patent application the PCT(The International Patent System - covering 153 countries) continuations of the patent application earlier submitted to DK.

CS MEDICA’s R&D department is currently in the process of researching and initiating several studies together with Leading European Research Laboratories and a Special Laboratory Accredited for CBD research to identify the trigger in the natural CBD for being active or inactive for the body. Further studies, test and pilot test will be performed until the trigger or triggers are 100% identified. CS MEDICA expects to have this research finalized at the end of 2022.

Once CS MEDICA has 100% identified the trigger or triggers, a new patent application will be filed to the patent office. As this know-how is based on basic research, this patent will impact all CBD products on the Global market utilizing CS MEDICA’s technology/know-how.

New business model
After filing the patent application, the company will set up a patent license agreement with manufacturers of CBD products, who will utilize the CS MEDICA technology in the CBD activity.

The patent license agreement will be enforced following below implementation plan:

  • Samples of CBD isolate from all manufacturers of natural CBD will be purchased and trigger/triggers evaluated
  • Once a manufacturer of active CBD is identified, the manufacturer will be contacted by a lawyer requesting a patent license agreement with CS MEDICA
  • If patent license agreements are not established, they will be sued for patent infringement.

Based on the patent license agreements, CS MEDICA has estimated the potential annual income[2] (before tax) below:

If granted, the new patent will protect the new business area for 20 years. The patent license agreement can potentially increase the future income in CS MEDICA with additional up to 18,75 billion (20 years * 937,5 million DKK = 18,75 Billion DKK) with a license fee of 2,5%, without considering the CARG %. These forward-looking statements are based on the scenario that CS MEDICA will be granted a future patent on the recent findings.

Disclaimer
Some statements may contain forward-looking information. All statements, other than of historical fact, that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future (including, without limitation, statements regarding potential distributor agreements) are forward-looking statements. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond the Company's ability to control or predict, which may cause the actual results of the Company to differ materially from those discussed in the forwardlooking statements.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described, there may be other factors that cause results or events not to be as anticipated, estimated or intended. The forward-looking statements included in this report are made as of the date of this report and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

[1] Read more about the bioavailability here.  Find more literature in the area below;
Giacoppo, S., Galuppo, M., Pollastro, F., Grassi, G., Bramanti, P. & Mazzon, E. A new formulation of cannabidiol in cream shows therapeutic effects in a mouse model of experimental autoimmune encephalomyelitis. DARU, J. Pharm. Sci. 23, 1–17 (2015).

Paudel, K. S., Hammell, D. C., Agu, R. U., Valiveti, S. & Stinchcomb, A. L. Cannabidiol bioavailability after nasal and transdermal application: Effect of permeation enhancers. Drug Dev. Ind. Pharm. 36, 1088–1097 (2010).

Kazmira. Why Bioavailability Matters for CBD. at https://www.kazmira-llc.com/homepage/blog/why-bioavailability-matters-for-cbd/ Bruni, N., Pepa, C. Della, Oliaro-Bosso, S., Pessione, E., Gastaldi, D. & Dosio, F. Cannabinoid delivery systems for pain and inflammation treatment. Molecules 23, (2018).

[3] 1The global cannabidiol market size was valued at USD 5.18 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.8% from 2022 to 2030.

For more information about CS MEDICA, please contact:
Lone Henriksen, CEO
Phone: + (45) 71 20 30 47
Email: lh@galaxapharma.com
Website: https://www.cs-medica.com/

CS MEDICA A/S is a Danish medico cannabis company founded in 2011. CS MEDICA is committed to developing, manufacturing, and commercializing over-the-counter (OTC) medical device products containing cannabinoids. The Company runs its business through the two fully-owned subsidiaries, Galaxa Pharma A/S (distributor and representative of foreign manufacturers in the Nordic, registered medical device product distributor) and CanNordic A/S (Medical device developer and seller (BtB), registered medical device product manufacturer). CS MEDICA distributes products across the European borders and is headquartered in Copenhagen, Denmark.

The company is listed on Spotlight Stock Market in Stockholm (symbol: “CSMED”). For more information about CS MEDICA cs-medica.com.

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