Ovation Science expands partnership with Skinvisible for obesity market

VANCOUVER/LAS VEGAS - Ovation Science Inc. (CSE:OVAT)(OTC:OVATF) announced Thursday an enhanced strategic partnership with Skinvisible Pharmaceuticals, Inc. (OTCQB:SKVI) to develop cannabinoid-based treatments for obesity using Skinvisible’s Invisicare® delivery technology. According to InvestingPro data, Skinvisible operates with a market capitalization of $680,000 and faces significant financial challenges, with an overall weak financial health score.

The expanded agreement builds upon their original 2017 partnership, maintaining Ovation’s exclusive worldwide rights to manufacture and market products utilizing Skinvisible’s polymer delivery systems specifically for cannabinoid applications. The partnership comes at a challenging time for Skinvisible, whose stock has declined over 83% in the past year, with particularly volatile trading patterns.

A key focus of the collaboration is the development of products incorporating THC-V (tetrahydrocannabivarin), a non-psychoactive cannabinoid that has shown promise as an appetite suppressant while potentially improving insulin sensitivity and glucose control, according to the companies’ in-house research.

The partnership includes access to Skinvisible’s recently filed patent-pending application for a transdermal delivery composition for glucose-controlling agents, which aims to reduce gastrointestinal side effects common in traditional obesity treatments.

"We are excited to extend our cannabinoid development into the obesity/metabolic space," said Terry Howlett, Ovation’s President, in the press release statement.

The companies cite industry projections that the global obesity therapy market could reach $150 billion by 2035, according to Morgan Stanley data referenced in their announcement. While InvestingPro analysis suggests Skinvisible is currently undervalued, the company faces operational challenges with negative EBITDA of $580,000 in the last twelve months. Discover more insights and 12 additional ProTips about Skinvisible’s potential with an InvestingPro subscription.

The transdermal delivery method developed by Skinvisible offers potential advantages over oral and injected medications, including improved bioavailability and reduced systemic side effects, which could enhance patient adherence to treatment protocols. The company maintains a 100% gross profit margin, though it operates with significant debt burden, as revealed by InvestingPro financial metrics.

Ovation Science develops topical and transdermal CBD/THC products through its licensed Invisicare® technology, generating revenue through royalties on licensees’ sales and its own product lines.

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