Why did this ASX 300 cannabis share just rocket 12%?

A graphic showing a rising share price in medical cannabis sharesA graphic showing a rising share price in medical cannabis shares

ASX 300 cannabis share Incannex Healthcare Ltd (ASX: IHL) is soaring today after the company announced some positive news.

The Incannex share price is currently 14 cents, up 11.54% for the day so far.

Let’s see what’s happening.

What news pushed this ASX 300 cannabis share higher?

Incannex is a pharmaceutical company developing proprietary medicinal cannabinoid products and psychedelic medicine therapies for conditions including generalised anxiety disorder.

Today, Incannex announced it is going to develop and manufacture its own cGMP-grade psilocybin drug for clinical trials.

In a statement, Incannex CEO Joel Latham said:

Having our own source of pharmaceutical grade psilocybin not only allows our company to freely undertake clinical trials, it also creates and assists with number of commercial opportunities which are currently at an advanced stage of investigation by the company, and will be announced in the coming weeks, following board appraisal and approval.

Incannex has engaged Catalent to develop the formulation.

The company said the manufacturing process would be designed so that it can be scaled up to commercial supply levels when appropriate.

‘Potential to help millions of people’

Incannex chief scientific officer Dr Mark Bleackley said:

The resulting drug product, and supporting data, will form an important component of future regulatory filings and will facilitate Incannex’s development of psilocybin-assisted psychotherapy for Generalised Anxiety Disorder.

This therapy has the potential to help millions of people whose lives are seriously impacted by severe anxiety and for whom current treatment options have not been effective.

Incannex share price snapshot

Cannabis shares are still a highly speculative segment of the share market.

This ASX 300 cannabis share is currently down 18% in the year to date, compared to a 5% bump for the S&P/ASX All Ordinaries Index (ASX: XAO).

Over the past 12 months, Incannex shares are down 78%. Over the past five years, they are up 635%.

The post Why did this ASX 300 cannabis share just rocket 12%? appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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