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viewXPhyto Therapeutics Corp.
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CSE:XPHYOTCQB:XPHYF
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XPhyto progressing its scientific approach to cannabis-based medicine and helping in the coronavirus fight

Snapshot

The bioscience company and its exclusive diagnostic partner, 3a-Diagnostics GmbH, have developed a point-of-care lateral flow test to detect COVID-19 viral RNA in patient saliva

XPhyto Therapeutics Corp. -

Quick facts: XPhyto Therapeutics Corp.

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CSE:XPHY

Price: 1.32 CAD

Market Cap: $92.09 m
  • German subsidiary, Vektor Pharma has developed an oral disintegrating film (ODF) for drug delivery
  • Developed low-cost oral screening test to concurrently detect COVID-19 and non-COVID-19 coronaviruses
  • Joint venture with Oettinger Brauerei for cannabis-infused beverages and products

What Xphyto Therapeutics does:

XPhyto Therapeutics Corp (CSE:XPHY) (OTCQB:XPHYF) (FRA:4XT) is a science-focused cannabis company developing analytical testing, processing, and formulation capability in Canada, while in Germany, it is focused on and research, cultivation, extraction, import, distribution, and manufacturing. 

The firm listed on the Canadian Securities Exchange (CSE) on August 6, 2019, and on the Frankfurt exchange on August 13, 2019.

In Canada, the firm has two exclusive five-year engagements with the faculty of Pharmacy at the University of Alberta to provide certified analytical testing capability, as well as extraction, isolation, and formulation facilities, and drug research and development expertise.

In Germany, in August 2019 - soon after going public - Xphyto acquired Vektor Pharma TF GmbH, a narcotics manufacturer. Vektor specializes in thin therapeutic films, such as skin patches and oral strips, and possesses a slate of narcotics licenses covering traditional and cannabis-related medications.

Prior to its float, XPhyto also acquired 100% ownership of German cannabis company, Bunker Pflanzenextrakte GmbH. The firm operates from a decommissioned German Air Force command center and nuclear bunker near Munich, hence its name, which is the largest cannabis laboratory in Germany.

Germany, Europe’s biggest economy is projected to have one of the highest growth rates in the world for a cannabis market, with a 76.8% compound annual growth rate to reach $1.6 billion by 2022, according to research by Arcview.

In November 2019, Xphyto announced a deal with a top cannabis grower to exclusively distribute cannabis flower, extracts, isolates and crystallites across Germany. The undisclosed supplier is a major grower and extractor – skilled in meeting Europe’s good manufacturing practice standards – which produces more than 100,000 hectares of medical-grade hydroponic high THC flower and THC cannabis strains for extraction.

And with the world rocked by the coronavirus (COVID-19) pandemic, in 2020 the company revealed that with its exclusive German diagnostics development partner, 3a-diagnostics GmbH (3a) it has developed Covid-ID Lab, a rapid coronavirus (COVID-19) RT-PCR test system.

How is it doing:

In March 2021, XPhyto Therapeutics achieved a major milestone when EU regulators approved its Covid-ID Lab, giving the company permission to commercialize the test. 

The sales launch in Europe was targeted for April 2021 with XPhyto currently in discussions with potential distribution and wholesale partners in Europe and the Middle East.

To carry out the test’s commercialization, the company also in April appointed Wolfgang Probst as its chief operations officer and Manfred Buchberger as head of corporate development at XP Diagnostics GmbH, the company’s wholly-owned German subsidiary. 

Probst and Buchberger will be responsible for executing the global product launch and business development of Covid-ID Lab. 

In the run-up to the EU’s approval of the test, XPhyto completed a corporate rebranding and launched a new website which can be viewed at: www.xphyto.com. The rebranding reflects its commitment to operational achievement in 2021. 

Earlier in the year, Xphyto announced that it had received the first order for Covid-ID Lab. The order was for 9,600 individual tests, packaged in 200 kits of 48 tests, to be manufactured in Germany. These will mainly be used to supply prospective distribution partners and licensees and government regulators with samples for review.

Away from the coronavirus pandemic, on February 10, the company said it had added the production of mescaline to its psychedelic medicine programs. Mescaline (3,4,5-trimethoxyphenethylamine) is a naturally occurring psychedelic compound found in certain cacti and has been anecdotally found to show promise for treating addiction and depression. 

A week earlier, XPhyto had also announced a new agreement with Applied Pharmaceutical Innovation over the synthesis of pharmaceutical-grade psychedelic compounds. In November last year, the company had announced an agreement with a leading German university for the exclusive development of a proprietary biotechnology process for the industrial manufacture of pharmaceutical-grade psilocybin.

In a wide-ranging update on January 28, XPhyto had outlined a number of strategic initiatives for 2021 that it said will see it advancing its drug manufacturing, drug formulation and psychedelics business lines. 

The company said its German subsidiary Vektor Pharma TF GmbH will focus on developing and manufacturing drug formulations for major mental health disorders. Vektor is planning to build a new commercial drug manufacturing facility in Germany in 2021, it told investors, having secured property in the district of Biberach near its current laboratory. The facility has a maximum laboratory capacity of around 3,000 square metres, according to the company.

XPhyto also told shareholders that the addition of in-house, scalable commercial drug manufacturing capability is expected to add “significant value and optionality” to XPhyto's drug formulation business.

On the formulations front, the company said it will zero in on neurological indications by advancing four clinical studies to treat Parkinson’s via a transdermal patch, and epilepsy, anorexia, and multiple sclerosis using an oral/sublingual strip.

XPhyto also said it plans to continue the development and validation of its biosensor products, with the goal to bring at least one biosensor product to the European market by the end of the year.

The firm added that Vektor will begin planning and development work to incorporate psychedelic compounds into its drug formulations. The initiative is facilitated by Vektor's drug delivery platforms, as well as XPhyto's agreements for the development of industrial-scale biotechnology processes for the production of psilocybin in Germany, and for the research and development of a broad range of psychedelic compounds, including psilocybin, mescaline, LSD, MDMA, DMT, in Canada.

On the financing front in January, the company revealed it had arranged a non-brokered private placement to raise up to $2.85 million. Under the placement, Xphyto offered 1.5 million units at $1.90 each. The company said it intends to use the net proceeds to facilitate development and commercialization of its oral and transdermal drug formulations, diagnostic test products, and psychedelic API and drug formulations, as well as general working capital purposes.

And on December 8, 2020, Xphyto revealed that it had closed an investment of C$3 million of unsecured convertible debentures with a single arms-length investor. The company said the investor is in the business of manufacturing and distributing medical products in Europe and the Middle East.

Inflection points:

  • More news on saliva-based COVID-19 screening test program
  • Further news on psychedelic medicine programs
  • Progress on Vektor's new commercial drug manufacturing facility in Germany

What the boss says:

"Our test is one of the fastest PCR-based COVID-19 tests currently approved. With a sample collection to result time of 25 minutes, Covid-ID Lab combines the speed of a rapid screening test with the accuracy of a PCR diagnostic," Xphyto CEO Hugh Rogers said in a recent statement.

"Covid-ID Lab is designed for point-of-care testing, particularly in satellite and small-scale labs, such as transportation hubs, borders, care facilities, schools, pharmacies, and hospitality settings."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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