Fans of Can-Fite Pharma (NYSE: CANF) will see a distinct spike this morning as the stock jumped 38% in pre-market trading.
Reports show Can-Fite is inking an agreement with Univo Pharmaceuticals for the development of medical cannabis for various health conditions.
SeekingAlpha reports that within the framework of the agreement, Can-Fite will have first right for clinical development of what’s discovered. The company will look to identify active cannabis components that can help with medical applications. Then, according to descriptions of this protocol, Univo can shop around unused findings to other companies.
“Once developed, Univo will market on a “fee for service” basis to other pharma companies worldwide,” writes Douglas House. “Univo will provide cannabis and cannabis components to Can-Fite in addition to access to its laboratories for research and manufacturing.”
The cost to Can-Fite will be $500,000 and 19.9 million CANF shares.
“This collaboration provides Can-Fite with new and very exciting business opportunities for utilizing our technology platform and expertise.” Can-Fite CEO Pnina Fishman in a press statement.
“Can-Fite’s deep expertise in A3 adenosine receptors is a significant asset in our joint collaboration and we are pleased to have formed this alliance,” added Univo CEO Golan Bitton. “Can-Fite has taken its drug candidates into Phase II and Phase III clinical studies and this makes Can-Fite highly suitable to take cannabis-based therapeutics into fully-fledged clinical development.”
Tomi Kilgore at MarketWatch reports trading volume for Can-Fite increased to 820,000 shares before the bell.
The rally also reverses a long-term decline where CANF stock lagged under five dollars since mid-May with a six-month high of $20.25 March 21.
Now, investors might be hoping that CANF will beat the S&P 500 index going into the future trading on these types of cannabis plans.