Aussie biotech finds its market niche down in the weeds

As demand for medicinal cannabis in Australia continues to grow, listed biotechnology company Avecho is looking to capture the recently opened market for over-the-counter cannabidiol (CBD) products. 

The Melbourne-based company produces a novel drug delivery system called TPM (tocopheryl phosphate mixture), which improves the solubility, stability and bioavailability of certain medications, including cannabinoids.

“TPM is a proprietary mixture of two different forms of phosphor-related vitamin E, which we manufacture at our facility in Melbourne,” Avecho CEO Dr Paul Gavin said.

“When it’s added to systems containing water, TPM can self-assemble into tiny vesicles – tiny little nano-particles – that can encapsulate drug molecules.”

This encapsulation process makes it easier for the human body to absorb certain drug molecules, which can make certain medicines work faster and last longer – particularly those that are not readily soluble in water.

Although this has a range of applications, Dr Gavin noted that recent changes to cannabinoid ‘scheduling’ – referring to the classifications used to dictate how drugs are made available to consumers – has opened a new market for the business.

“In December 2020, the TGA (Therapeutic Goods Administration) down-scheduled cannabidiol to an over-the-counter medicine,” he said.

“That means future cannabidiol products can be approved as over-the-counter medicines, so patients can walk straight into the pharmacy and buy CBD directly from the pharmacist without having to go to the GP.”

Dr Gavin said these changes are almost “tailor-made” for Avecho, and the company has developed a 75mg cannabidiol product that uses TPM to drastically improve absorption of the active chemicals. 

In the right formulation, TPM can lift the absorption of CBD by 40 times in animals, Dr Gavin noted.

Matt McNamara, chief investment officer of Horizon3 BioTech and non-executive director of Avecho, said the business is now exploring how this pans out in humans, too.  

“[The results in animals] mean you can improve the effectiveness of the dosing that you do give and you can actually reduce the amount of doses that you might give,” he said.“We’re very hopeful and confident that this will be proven in humans, and make the administering of CBD that much cleaner and more effective.”

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