Welcome back everyone, so in this video, we are going to be talking about one penny stock from
the biopharma sector, tackling addiction which has one of the world’s biggest unmet medical needs.
And Substance and behavioural addictions affect over 1.3¹ billion people worldwide.
Yet all current treatments have high failure rates. The global substance addiction treatment
industry was valued at US$16bn in 2021 and is forecast to increase to US$25bn by 2027.
The answer to this is psychedelic healthcare, which will become an essential tool in the
treatment of worsening mental health issues. And according to mental health charity Mind, more than
two-thirds of adults with mental health problems reported that their mental health worsened during
lockdown, and we still don’t have a full picture of what the impact of this will be, or how the
pandemic has affected the general population. And so in response, pharmaceutical companies are
looking to significantly invest in new medical treatments to address this problem. Even better
as governments too are encouraged to act swiftly to protect the welfare of their citizens.
Moreso investors are turning toward psychedelic health care companies
for three key reasons: the global need for effective mental health treatments,
evolving legislation and regulation, and widely supportive public opinion.
So I have for you today one top biopharma penny stock
which is developing a better solution to treat addiction
and is backed by the world’s leading experts. So you want to make sure you watch the video till the
end so you hear their Chief Research Officer share insights on their approach and the big
opportunities which lie ahead. And also remember that my videos are not financial advise but only
the facts presented for your to do your own dd and make your investment decisions accordingly.
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So with that out of the way, let’s talk about Awakn Life Sciences Corp (OTCQB
AWKNF) which is now sitting at 91cents per share with a market cap of $22m.
Awakn like most other stocks out there hasn’t been spared by the recent market crash
as it is down 25% over the last month heading towards all time lows of 91cents
which puts it down by over 61% since the broader market selloff intensified.
It hit its peak of $2.44 in January before given up most of those gains. But once you hear
they story, then you get to truly appreciate the potential which they have. So here’s what’s new.
Awakn Life Sciences is a biotechnology company, researching, developing,
and delivering psychedelic therapeutics to better treat addiction. Awakn’s team consists
of world leading chemists, scientists, psychiatrists, and psychologists who are
advancing the next generation of psychedelic drugs and therapies to be used in combination.
And through clinical trials, their team has shown that this approach
has the potential to be more effective than any addiction treatment currently available
and they now aspire to become the market leader in effective addiction treatment, meeting
a vast global need that is failed by current approaches. So in essence, Awakn is disrupting
this underperforming industry by rapidly advancing the next generation of psychedelic drugs and
therapies to be used in combination, through preclinical research and clinical stage trials.
But before we go any further, lets hear from their Chief Research Officer, Professor David Nutt on
who they are, their unique approach to treating addiction and what opportunities lie ahead.
Wow, the potential for the phase II b trial to get a marketing authorisation
and a number of clinics in the pipeline and already opening,
just demonstrates how real this opportunity is, which is really really interesting.
And in markets like this, one thing which we are always interested in is where the growth is going
to come from and their path to commercialisation and they’ve certainly got it covered. They have
2 clinics scheduled to be opened in 2022 and one just recently opened in London and with a strong
pipeline to be opened across the European region. And so if you look at their ambition for 2024
where they anticipate between 15 – 20 clinics in place by 2024 with an average of £3m per clinic,
thats an upper limit top line revenue estimate of about £60m or about $73m which is brilliant,
and for a $26m market cap, it clearly speaks plenty of upside potential here.
And this is where it gets even better or the icing on the cake with Awakn
which is with their peer comparables. When you look at their market cap at $46m CAD again this
is a snapshot pre this market selloff in April, which is relative across the board,
so when you look at the market cap against the progress and depth of their pipeline
of clinical trials where they have drugs in Phase IIb which is where their larger
competitors are like Compass, Mindmed or Cybin, it goes to show you how undervalued they are.
And even if one conservatively used Cybin valuation as a median multiple, you begin to
talk of an over 4X upside from current levels. So plenty in the tank to push Awakn forward
should they deliver to their clinic opening plans and deliver on their clinical trials.
Awakn recently Received Regulatory Approval for their Flagship Clinic in London to Begin
Delivering Treatments. They say the London Clinic Will Begin Delivering Ketamine-Assisted
Therapy for Addiction & Mental Health. The flagship London clinic is Awakn's third clinic,
adding to the Company's two operating clinics located in Bristol (UK) and Oslo (Norway). The
clinics deliver ketamine-assisted therapy to treat addiction and several mental health disorders.
So clients seeking treatment for Alcohol Use Disorder, will receive Awakn's groundbreaking
treatment protocol developed in their recently published Phase II a/b clinical trial.
Anthony Tennyson, Awakn's CEO, commented, "This is a very exciting moment for Awakn
and for ketamine-assisted therapy overall, as it starts to become a more accessible option
for patients. Most importantly, it provides an effective treatment option for so many,
when other current therapies or treatments fall short. The Care Quality Commission's (CQC) giving
them this recognition again signals a positive direction for the UK and Europe
toward embracing ketamine-assisted therapy as a mainstream treatment."
Awakn Reported their Fiscal Fourth Quarter And Fiscal Year January 31, 2022, Results
Their CEO Anthony Tennyson, stated, “Awakn’s fiscal year 2021 was a foundational year for
the Company where they established their business model of researching,
developing, and delivering combined therapeutics to treat addiction,
with a near term focus on Alcohol Use Disorder (AUD), a condition affecting 400m people globally.
This business model enables them to develop new and potentially more effective combined
therapeutics for treating addiction and also to gather real world data to support interactions
with regulatory agencies prior to commercializing our combined therapeutics at scale.”
Looking forward to the rest of calendar year 2022, they plan to progress
their Alcohol Use Disorder AUD Phase II b trial into Phase III, they will complete
their early stage basket study in humans for behavioral addictions, , they will
begin commercial activity in the US by licensing their AUD treatments to
clinics in that territory, and they will continue to build and grow their clinics platform,”
They achieved 12-month revenue of $236,037 via Awakn’s clinics for the fiscal year ended January
31, 2022, compared to $Nil in the prior year. 4Q21 revenue was $204,300 compared to 4Q21 revenue of
$31,737, a 544% increase quarter over quarter.. So some triple digit revenue growth here.
So in summary, Awakn has Multiple Scalable Revenue Streams from their Clinics,
They expect Therapeutics Commercialization from 2022,
they have A Revolutionary Approach and Global Research Leaders in the Field of Psychedelic
Treatments for Addiction. What an interesting story and outlook here.
So some very very interesting and mindblowing prospects ahead for these penny stocks but
only consider getting in if the price is right for you and if you fully understand the risks.
This video is not financial advice, a buy or a sell recommendation, but is meant to bring some
new and exciting penny stocks to your attention for you to do your own research.. As always I
would love to hear from you, so please let me know your thoughts on these top penny stocks
in the comments section below and what other penny stocks are catching your eyes lately.
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Thank you so much for being here and I look forward to have you in my next video. Thank you