Medlab Clinical - Transforming into a pure-play biotech

In its former shape, Medlab used the cash flows from selling innovative nutraceuticals to fund pharmaceutical research. With lead product NanaBis (NanoCelle encapsulated 50:50 THC:CBD for pain) preparing to enter a Phase III trial in pain, management has decided to fully focus on therapeutics development and divested its nutraceuticals portfolio in November 2021. As a pure-play biotech, Medlab is also focused on optimising its R&D portfolio, which has many initiatives. Historically, Medlab has explored its proprietary drug delivery technology NanoCelle in combination with various generic active pharmaceutical ingredients (APIs), extracts and other products. The management is now prioritising the likely winners, with NanaBis leading the pack. Our valuation has increased to A$239m or A$0.70 per share.