No highs for Med­lab af­ter lack­lus­tre IPO

Townsville Bulletin - - NEWS -

B I OT EC H N OL OGY c o mpany and cannabis clin­i­cal trial ap­pli­cant Med­lab Clin­i­cal has made an un­spec­tac­u­lar de­but on the ASX.

Shares in the nu­tri­tional phar­ma­ceu­ti­cal com­pany hit the boards at 20.5c when they started trad­ing and climbed as high as 21.5c.

But de­spite the wider mar­ket ris­ing nearly 2 per cent, Med­lab shares closed flat at 20c, the same price in­vestors paid in the com­pany’s $ 6.17 mil­lion ini­tial public of­fer­ing.

The com­pany is await­ing NSW Gov­ern­ment ap­proval to com­mence cannabis clin­i­cal tri­als and has ear­marked around $ 250,000 for cannabis pain man­age­ment re­search.

Chief ex­ec­u­tive Sean Hall said the com­pany had in­vested 2 ½ years of re­search into the bur­geon­ing field.

“We’re not yet ap­proved go­ing through to what we hope is the fi­nal stages, so while wait­ing on fi­nal li­cences we’re work­ing on dosages, de­liv­ery and what up­take will look like,” he said.

While un­able to spec­ify a time frame for fi­nal li­cence ap­proval from the Baird Gov­ern­ment, Mr Hall said the com­pany be­lieved it was get­ting close.

He said the bulk of the com­pany’s re­search into de­pres­sion, obe­sity and chronic kid­ney dis­ease had ad­vanced to fi­nal stages, with Med­lab hop­ing to have its first medicine reg­is­tered by the Ther­a­peu­tic Goods Ad­min­is­tra­tion in 2016.

Med­lab is not the only pub­licly listed com­pany with an eye on clin­i­cal cannabis tri­als, with Perth- based med­i­cal mar­i­juana com­pany Phy­totech mak­ing its stock mar­ket de­but ear­lier this year.

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