Focusing on animal well-being, particularly companion pets (e.g., cats and dogs) could be lucrative for the company.
According to the American Pet Product Association, annual pet industry expenditure in the U.S. has grown in each of the past 18 years, with Americans estimated to have spent $18.3 billion on veterinary care and $15.5 billion on supplies and over-the-counter medicines in 2018.
The company recently received two key ethics approvals to progress the research and development of its lead therapeutic products, CPAT-01 and DermaCann.
CPAT-01 is a pain and inflammatory control being developed for dogs and DermaCann is a nutraceutical product in development to promote canine skin health.
CannPal hopes to complete recruitment for both studies by mid CY2019.
Elixinol Global gaining traction in the pet space
Many players in the industrial hemp and cannabidiol (CBD) based dietary supplement market are seeing a growing market for their products catering to the pet industry.
Elixinol recently witnessed an increase in private label production which now accounts for around 40% of its U.S. revenue of $32.5 million in 2018, with one large customer in the pet space driving most of the private label growth.
Cannabinoids-based animal health is a niche space that is growing fast and CannPal already has an advantage through its research and product development programs which are well underway.