#TETRA BIO PHARMA STOCK PRO#

They have several other candidates - mostly in preclinical stage - albeit a study aimed specifically towards advanced cancer pain (initiating phase 3). The company has several trials in phase 1 studies determining the effects of THC on Chemotherapy supplemental treatment, chronic pain, and chronic pain in capsule form. Tetra has been developing multiple clinical trials aimed at testing the efficacy of marijuana for various indications. Furthermore, it will be very difficult for companies to generate generics, since there is no current biosimilar. These studies will not only accelerate public-trust and sales due to insurance covering the bill but will also create a wide moat: requiring new entrants to spend years and millions to recreate trials in the future. The best method to capitalize on the trending legalization and public support of marijuana would be investing in companies that are formalizing studies to create a subscribed cannabis drug. Management of both companies cited excise taxes as another contributor, which would also bolster the argument for clinical applications rather than direct to consumer or business.

The decline reflects the competitive landscape of the industry. Compared to their most recent quarter (2019 Q3), Aurora experienced a decline of about 9.35%. Table data retrieved from: Aphria's Q2 2019 earnings call transcriptĪssuming the vast majority of Aurora's sales are derived from cannabis, and weighting the two segments appropriately, we get a net average selling price of $7.06. Following a closer look at the period prior, filing data are as follows: Expressed in CAD What is strange is that the company did not formally disclose the marginal decrease from the prior period. This is because of the high supply, already low margins, and limited differentiation.Īurora is also having difficulty maintaining average selling price per gram, decreasing to $6.40 in the past quarter. In a larger, homogenous market that is only just emerging, prices are going to fall. 'Overall during the third quarter fiscal 2019 the weighted average sales price was $7.33 per gram, representing of 12% from the same period last year.' However, investors are neglecting the inevitable fact of the industry structure, by default, creates a race to the bottom that will produce mediocre margins.įor instance, Canopy Growth Corporation's last conference call denotes the impact on producers' bottom line in their current competitive industry structure. The focus has been on recreational and para-medicinal cannabis producers, such as: Canopy Growth ( CGC), Aurora Cannabis ( ACB), Cronos Group ( CRON), Tilray ( TLRY), and others.

Most relevant companies have been lifted by the 'green tide,' but, like in every industry, there are still diamonds in the ruff prompting investors to reap unprecedented returns. The cannabis market is booming and becoming increasingly crowded as valuations take off and consolidation becomes inevitable.

Tetra Bio-Pharma ( OTCQB:TBPMF) is an early-stage, micro-cap biotechnology firm studying the efficacy of marijuana primarily on advanced cancer pain it is inherently disruptive to the pharmaceutical industry and either misunderstood or unpopular amongst investors.

#TETRA BIO PHARMA STOCK PRO#

Active contributors also get free access to the SA PRO archive. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Editor's note: Seeking Alpha is proud to welcome James Mase as a new contributor.

Tetra bio pharma stock