Avecho Biotechnology

DR PAUL GAVIN

CEO

(ASX:AVE )

◾ Company Name: Avecho Biotechnology ◾ Company ASX code: AVE ◾ Key areas: Pharmaceutical cannabinoid products ◾ Key Personnel: Dr Paul Gavin, CEO | Dr Roksan Libinaki, COO | Dr Greg Collier, Chairman of the Board ◾ Locations: Australia ◾ Market Cap as of 15/09/22: $20.21M ◾ 52 Week share price as of 15 September: $0.011 - $0.023 ◾ Company Website: avecho.com.au

COMPANY PROFILE

Avecho Biotechnology is a Melbournebased biotechnology company backed by a highly experienced team, which has spent more than two decades developing and commercialising pharmaceutical products together.

The company’s proprietary Tocopheryl Phosphate Mixture (TPM®) drug delivery system is now being leveraged to develop differentiated and highly competitive cannabinoid products for a variety of markets.

TPM® is derived from Vitamin E and is proven to enhance the solubility and oral, dermal and transdermal absorption of drugs and nutrients – including, most notably, the absorption of the active ingredients in medicinal cannabis, such as cannabidiol (CBD).

The company is currently proceeding toward a pivotal Phase III clinical trial for its CBD soft-gel product for an insomnia related indication, which will be conducted in Australia.

The Phase III protocol is rigorous, having been designed with subsequent FDA and EMEA submissions front of mind. This trial design will increase the likelihood of licensing the product in overseas markets – a significant market opportunity.

Avecho’s oral CBD capsule has also completed a Phase I clinical trial, a key milestone that has informed the design of the imminent Phase III clinical trial, and is a pivotal part of the company’s data package to support the registration of its soft-gel product with the Therapeutic Goods Administration (TGA) as an over-the-counter (S3) medicine.

Avecho has also cultivated a successful research collaboration with the Lambert Initiative, Australia’s leading research group for the discovery, development, and optimisation of safe cannabinoid therapeutics.

Recently, they co-published and attracted international exposure for Phase II data demonstrating the effectiveness of topical cannabinoids for treating osteoarthritis – a common, painful, and irreversible condition that significantly impairs hand strength and function.

During four weeks of dosing, the study demonstrated statistically significant daily improvements in hand pain, hand functionality, grip strength, finger stiffness and anxiety. Plans for larger placebo-controlled studies are now underway.

Targeted business development and revenue generation opportunities are also a focus for the company, alongside its clinical program.

Avecho has secured a licensing and partnership agreement with Perland Pharma in the US licensing its CBD capsule for use in arthritis indications. This partnership will place the CBD capsule before the US Food and Drug Administration (FDA) and provide a potential pathway for another indication too.

Avecho has also secured a lucrative deal in the US to develop and commercialise a unique cannabis distillate for use in consumer cannabis products – like edibles. Initial findings have demonstrated that the inclusion of TPM® in edible gummies containing cannabis may increase the onset, duration or magnitude of effect.

Avecho is now commencing strategic outreach in North American markets to educate key recreational cannabis companies about how TPM® can enhance their products. Recreational cannabis represents a large and lucrative additional market for Avecho, with sales of cannabisrelated products totalling US$17.5B in 2020.

KEY INVESTMENT HIGHLIGHTS

◾ Avecho is a highly credentialed biotechnology company, extending its expertise in drug development for human and animal health products to the emerging cannabinoid space. ◾ Avecho’s R&D program is differentiated by its proprietary Tocopheryl Phosphate Mixture (TPM®) drug delivery system, which significantly increases the absorption of cannabinoids such as cannabidiol (CBD), allowing for the development of cannabinoid products with increased effectiveness, commercial differentiation, and true patent protection. ◾ TPM® is primed for disrupting the global cannabis market and targeted licensing/ revenue deals, as it supports enhanced bioavailability of the molecule across multiple applications and product types.