$1.5 million R&D rebate bolsters cash balance

Our cannabis Investment Bod Science (ASX:BOD, note name recently changed from Bod Australia) got a boost to its coffers from the Aussie government today - which shores up its cash position as it advances clinical trials for its CBD products.

The federal government helps companies innovate and grow by offsetting some of the costs of eligible research and development (R&D).

This is to the benefit of the nation as it can lead to commercially viable innovations that spur economic growth, as well as to innovative companies by subsidising some of their upfront costs.

So it was good to see BOD’s R&D focus rewarded, as it announced this morning the receipt of $1.512M via a R&D Tax Incentive Rebate for the 2022 financial year.

As the table below attests, BOD has certainly been active this year in this space, advancing 11 R&D programs. Three of these are now in phase I and II trials, including a Schedule 3 (pharmacist-only) CBD (cannabidiol) product to treat insomnia currently recruiting patients.

What’s up next?

We’re keen to see an update on patient recruitment for the Schedule 3, CBD-based insomnia treatment, early in 2023. A dossier submission to the TGA is expected in 1H23.

Subject to the outcomes of the trial, BOD could have this product available for purchase late 2023/ 1H24, which would make it among the first to offer such OTC CBD-products in Australian pharmacies.

We also anticipate an update on progress of the long Covid observational trial, early in the new year.

Also on our watchlist is to see progress of Bod's latest announced acquisition, Aqua Phase, which has the potential to revolutionise how CBD is delivered to the human body.