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AUSTIN - Anebulo Pharmaceuticals, Inc. (NASDAQ:ANEB), a clinical-stage biopharmaceutical company with a market capitalization of $101 million, has dosed the first subjects in a Phase 1 single ascending dose study of intravenous selonabant in healthy young adults. The company’s stock has shown remarkable strength, gaining over 60% in the past six months. According to InvestingPro analysis, the company maintains a strong financial position with cash reserves exceeding debt obligations.
The study is supported by a collaborative grant from the National Institute on Drug Abuse (NIDA), which has awarded the second year of funding totaling $994,300.
The randomized, double-blind, placebo-controlled trial will evaluate the safety, tolerability, and pharmacokinetics of intravenous selonabant in healthy adults aged 18 to 25 years.
Selonabant is a competitive antagonist at the human CB1 receptor, which is primarily involved in the psychotropic effects of cannabis. The company has previously tested an oral formulation of the drug in a Phase 2 clinical trial, demonstrating its potential to block and reverse negative effects of acute cannabinoid intoxication in adults challenged with oral THC.
Anebulo has prioritized developing the intravenous formulation as a potential treatment for pediatric patients with acute cannabis-induced toxicity, which the company considers a more serious condition that could offer a faster path to regulatory approval compared to the adult oral product.
"This important milestone brings Anebulo closer to its goal of providing the first emergency antidote for acute cannabis-induced toxicity," said Richie Cunningham, Chief Executive Officer of Anebulo, according to the press release statement. While the company is currently operating at a loss, with analysts projecting continued negative earnings this year, its stock has demonstrated resilience with a beta of -0.89, suggesting it often moves counter to broader market trends. Discover more insights and 8 additional key metrics with InvestingPro.
The company notes that cannabis exposure in children can result in serious consequences including CNS depression, respiratory depression, coma, and in rare cases death, with children being more sensitive to cannabis’s toxic effects due to age-related differences in cannabis receptor distribution in their brains.
In other recent news, Anebulo Pharmaceuticals announced that it is exploring strategic alternatives following interest from potential financial and strategic partners. This development comes after the company’s Board of Directors approved a plan to go private through a reverse stock split. The reverse stock split will be executed at a ratio between 1-for-2,500 and 1-for-7,500, with the exact ratio to be determined by the Board. Stockholders holding fewer shares than the minimum threshold will receive $3.50 per pre-split share in cash, representing a significant premium over the recent closing price. The company’s board is considering various options, including the proposed going private transaction, a potential sale of assets, or a merger. Anebulo Pharmaceuticals is responding to inbound interest as it reviews these strategic alternatives. The Board’s decision to approve the reverse stock split follows a recommendation from a Special Committee of independent directors. These recent developments highlight the company’s ongoing efforts to navigate its strategic direction.
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