Vitality Biopharma Inc (OTCMKTS: VBIO) is a stock that has been on our radar for quite some time. While the stock isn’t seeing much movement in the market today, I believe that it is going to start to run for the top relatively soon, and apparently, SeeThruEquity sees the same. The independent equity research firm issued a note this morning, increasing its price target. Today, we’ll talk about:
- The price target increase;
- why this different take on cannabis is worth paying attention to; and
- what we’ll be watching for ahead.
SeeThruEquity Increases VBIO Price Target
As mentioned above, SeeThruEquity sees opportunity in Vitality Biopharma. In a note released this morning, the equity research firm increased its price target on the stock to $3.50, representing a 107.10% potential upside. So, why is the firm so bullish?
In the note, SeeThruEquity provided various reasons for the VBIO price target increase. These included the $8.5 million in funding that was recently secured, which will get the company through 2020 and provide the funds needed for multiple clinical trials on its lead drug.
The firm also pointed to the fact that the company has recently established a new unit to explore alternatives to opiods. With more than 2 million opiate-dependant Americans, there is a strong medical need for this type of alternative.
Finally, SeeTrhuEquity mentioned recent encouraging pre-clinical data from VBX-100. The data suggests that the drug will reduce weight loss, decrease colon damage, and improve overall gastrointestinal health.
Why This Take On Cannabis Is Worth Paying Attention To
At the moment, the big interest in cannabis seems to be in the recreational space. We see companies like Canopy Growth Corporation (CGC), Tilray (TLRY) and Cronos (CRON) all getting quite a bit of investor attention. However, the recreational side of the coin is not the only side.
Recent data continues to support the idea that cannabis can not only be used as a medicine, but may be more effective and less dangerous than other types of medication. There is also a strong belief among many in the health community that cannabis can provide an alternative to opiods, reducing the toll these drugs have had on the United States as we are led further into the opiod epidemic.
At the end of the day, VBIO is focused on solving these real problems, using a plant that is becoming more widely accepted among the investing community. All in all, there’s a good reason to be excited here.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on Vitality Biopharma. In particular, we’re interested in following the development of VBX-100 as the treatment has shown promise in the pre-clinical setting and is expected to head into Phase 2 soon. We’ll also be watching for more news associated with the company’s plans to offer an alternative to opiods, combatting addiction in the United States while providing investors with a strong return of value. It’s also worth mentioning that we are in the process of researching this stock in further detail to provide a full analysis relatively soon. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!