Key Investment Highlights for Emerald Health Pharmaceuticals
Emerald Health Pharmaceuticals Inc. (“EHP” or “the Company”) is a private clinical-stage biotechnology company developing a portfolio of novel proprietary therapeutic molecules derived from cannabinoid architecture to treat various neurodegenerative, autoimmune, inflammatory, and fibrotic diseases with no current cure.
EHP employs a Rational Drug Design platform to produce novel molecules that affect key validated biologic receptors and pathways in the body to exert a more comprehensive effect on complex diseases. Their drug development process is focused on achieving more powerful therapeutic outcomes, including disease modification and possible reversal of the disease progression.
EHP’s Rational Drug Design process consists of three key steps: (1) identify key physiological processes that must be affected to impact disease progression; (2) identify key biologic targets in the body able to affect those processes across multiple diseases with certain commonalities; and (3) create novel molecules able to target and modulate these key biologic targets and processes. The Company has created a portfolio of 25 distinct molecules (new chemical entities [NCE]) with 25 granted patents and 19 pending patents, including composition-of-matter, formulation, and method-of-use for many diseases.
Most current treatments for neurodegenerative and autoimmune diseases aim at addressing symptoms, providing no disease-modifying capabilities due to addressing only part of the multiple processes that influence the disease. EHP is developing product candidates with a multifaceted mechanism of action designed to affect the key biological processes associated with the conditions. EHP’s product candidates have demonstrated the potential to modify and reverse disease progression in people suffering from various neurodegenerative, autoimmune, inflammatory, and fibrotic diseases.
The Company’s lead product candidate, EHP-101 (an oral formulation of a novel molecule based on cannabidiol [CBD] architecture), is a first-in-class molecule currently enrolling patients in a Phase IIa study for the treatment of systemic sclerosis (SSc) and in the initiation stage of a Phase IIa study to treat multiple sclerosis (MS). EHP has received Orphan Drug status in both the U.S. and E.U. and Fast Track designation in the U.S. for SSc.
EHP-101 has completed preclinical proof-of-concept and a Phase I human study demonstrating tolerability, safety, and potential disease-modifying benefits in both SSc and MS. The molecule demonstrated anti-inflammatory, neuroprotective, neurogenic, and antifibrotic properties in preclinical (non-human) models. A Phase IIa clinical study for the treatment of SSc is underway in the U.S., Australia, and New Zealand. Initiation activities are also underway for a Phase IIa clinical study in MS with enrollment expected to start in Q1 2022.
EHP’s second product candidate, EHP-102 (an oral formulation of a novel molecule based on cannabigerol [CBG] architecture), is being developed for Parkinson’s disease (PD) and Huntington’s disease (HD) and is in the preclinical stage of development. EHP has received Orphan Drug status for EHP-102 in HD in both the U.S. and the EU.
In preclinical studies, EHP-102 has demonstrated the potential to promote the regeneration of nerve cells, protect against neuroinflammation and neurodegeneration in HD models, and reduce the loss of dopamine production in PD models. These data support EHP-102’s potential to be disease-modifying rather than only symptomatic.
EHP has assembled a highly experienced management team with decades of experience in the biotechnology and pharmaceutical industry, supported by clinical and scientific advisory boards composed of globally recognized experts in their field.
The Company is targeting a multi-billion-dollar market potential in its four initial disease indications—MS, SSc, PD, and HD—with its technology possibly able to address additional indications beyond the four identified.
EHP closed a financing in March 2021, under which the Company raised approximately $60 million, covering operations through the second half of 2022. As of June 30, 2021, the Company’s cash, cash equivalent, and restricted cash position was $21 million.