BOD to expand into Malaysia?

Today, our cannabis Investment, BOD Science (ASX:BOD), announced what we think could prove to be an important step towards entering a new market in South East Asia.

As many cannabis market watchers would know, Thailand has recently legalised the sale of cannabis products, resulting in a boom market in the country.

Neighbouring Malaysia, is considering altering its cannabis laws, potentially starting with a medicalisation initiative.

BOD is well suited to these types of initiatives - given that its sole focus is on cannabidiol (CBD) - a non-hallucinogenic component of cannabis.

This is the short version of BOD’s Letter of Intent announcement today:

• BOD will work with Antah Group (large investment holding company in Malaysia, which has a healthcare arm)
• BOD to supply products to Antah with “investigational medical products”, likely BOD’s CBD range
• Together, the two companies will explore potential clinical trials in the country
• Antah will have exclusive right to market BOD’s products in Malaysia

The idea here is that BOD will be at the forefront of any Malaysian medical cannabis push.

We think this BOD + Antah Group Letter of Intent sets that up.

What’s next for BOD?

Following our last note on BOD these are the two things we are most looking forward to from BOD:

🔄 Phase IIb clinical trial using BOD’s CBD (Cannabidiol) product on insomnia - we’re expecting results from this trial towards the end of this month, or the start of next month.

It would form the basis of an application to Australia’s Therapeutic Goods Administration (TGA) and unlock the opportunity for significant sales in Australia. A successful outcome from the trial and the potential for TGA approval after dossier submission would make this possible.

🔄 2x results from tests on BOD’s new Aqua Phase tech - BOD is in the process of conducting two Pharmacokinetic (PK) Studies which basically test to see how well BOD’s tech can improve the body’s absorption of CBD.

We think these tests have major implications - i.e a material improvement in bioavailability would mean BOD could then license/or form partnerships with the Aqua Phase tech across the global CBD market. The CBD market is a US$6BN industry and we think its possible major cannabis companies would be eager to get access to this tech.