SciSparc Ltd.: A Pathbreaking Pharma Play Catering To Central Nervous System Disorders
The sub-domain of cannabinoid technologies within the pharma world is a relatively less explored blue ocean. These technologies have immense application for the treatment of a wide variety of disorders, particularly those catering to the central nervous system. Our small-cap pick for the day is a company that has made ground-breaking research in using cannabinoid technologies for developing treatments of various disorders associated with the CNS such as Tourette Syndrome, Alzheimer’s disease, and many more – SciSparc Ltd. (NASDAQ:SPRC). The company uses the endocannabinoid system as its primary platform and has a wide range of novel compounds, developed by enhancing existing compounds with its proprietary technologies, to develop effective treatments for disorders that have no cure today.
SciSparc Ltd. is a clinical-stage pharmaceutical company specializing in drug development associated with cannabinoid molecules. Its drug development programs include SCI-110 for Tourette syndrome, Alzheimer’s disease and agitation, SCI-160 for pain, and SCI-210 for autism spectrum disorder and Status Epilepticus. The company is developing and commercializing SCI-110in collaboration with Procaps. It also has a pre-clinical study with the Sheba Fund for Health Services and Research in Israel to evaluate the SCI-210 drug development program for the treatment of Status Epilepticus; and a Phase 2a clinical trial with the Israeli Medical Center for Alzheimer’s disease to assess the safety, tolerability, and efficacy of SCI-110 in patients with Alzheimer’s disease and agitation. The synergistic effect observed in the way the endocannabinoid system operates, first described by Israeli scientists Shimon Ben-Shabat and Raphael Mechoulam in 1998, is at the core of SciSparc’s research and development platforms. This area of study is based on the idea that the cannabinoids found in cannabis interact synergistically to affect the body across multiple targets, various benefits. With this work, SciSparc is addressing a number of indications that have a wide impact and unmet medical need. It is a Tel Aviv, Israel-based company.
The SCI-110 Platform
SciSparc’s core drug platform, the SCI-110 includes a number of indications that the company is developing, with clinical testing of the new dosage form for Tourette Syndrome. The company is mainly evaluating SCI-110 in Tourette patients which is where it has made significant progress and advanced beyond the Phase 2a of clinical trials. An average tic reduction of 21% was reported across the entire sample in a Phase 2a clinical trial of SCI-110 conducted in collaboration with Yale University ,and the medication was generally well-tolerated. Within the Phase 2b randomized controlled trial, SciSparc plans to assess the safety, efficacy, and tolerability of SCI-110. The overall potential benefit is expected to be improved oral administration efficiency, allowing for lower dosage and fewer side effects and adverse events.
Large Addressable Market
As per the research of Mordor Intelligence, North America is the largest global market for the treatment of Tourette Syndrome. As per the data of a U.S. CDC study, 1 of every 360 (0.3%) children between 6 years to 17 years of age in the U.S. have received a diagnosis of Tourette Syndrome with around 37% having been reported as having moderate or severe forms of the condition. The global Tourette Syndrome market is expected to grow at a rate of 10.6% until 2026 implying a large addressable market for SciSparc’s SCI-110. Final Thoughts
SciSparc is a zero-revenue player but its pipeline is highly diversified and it is very close to starting an active revenue stream through the commercial production and sale of the CannAmide offering. The management is expected to continue developing its pipeline in the coming years. SciSparc’s IP portfolio consists of patent and provisional assignments, enabling the company to capitalize on the economic opportunity for its products within the company’s forecasted time frame. Overall, we are extremely bullish on SciSparc and we believe that it is an extremely promising pharma investment at current levels.