Tilray Inc. (NASDAQ: TLRY) continued its incredible rally with shares up massively on Tuesday after the U.S. Drug Enforcement Administration granted approval for the company to import a cannabinoid study drug for a clinical trial at the University of California San Diego Center for Medicinal Cannabis Research.
Basically, Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol (CBD) and tetrahydrocannabinol (THC).
The Essential Tremor (ET) trial is expected to begin in early 2019 with financial support from Tilray and the International Essential Tremor Foundation.
For some quick background: ET is a neurological movement disorder characterized by involuntary and rhythmic shaking. ET has extremely high prevalence rates; 0.4% of the general population suffer from ET, and that figure rises to 4.6% to 6.3% among those 65 and older.
Dr. Catherine Jacobson, Director of Clinical Research at Tilray, commented:
Tilray is proud to support this crucial research. If this study can identify cannabinoids as a potential treatment for patients suffering from essential tremor, we can conduct further research and potentially provide alternative effective methods of relief for the high numbers of patients with ET.
Excluding Tuesday’s move, Tilray has vastly outperformed the broad markets, with the stock up about 437% since it came public in July.
Shares of Tilray were last seen up about 21% at $145.52 on Tuesday, with a consensus analyst price target of $52.00 and a 52-week trading range of $20.10 to $149.00.