Top 3 ASX Cannabis Stocks

Year-on-year performance: 207.02 percent; market cap: AU$281.42 million; current share price: AU$0.18

Botanix Pharmaceuticals is a biopharmaceutical company based in Perth, Western Australia, that specialises in cannabinoid-based dermatological therapies. According to the company, its exclusive Permetrex technology helps its products permeate the skin, allowing their medicinal properties to treat skin conditions from below the surface.

The company’s lead product, Sofdra, is being developed to treat axillary hyperhidrosis, or excessive sweating. Phase III trials were successful, and the product launched in Japan back in 2020, where it’s marketed under the name Ecclock. After the US Food and Drug Administration (FDA) reported issues with Sofdra’s Instructions for Use in September 2023, Botanix completed a human factors validation study to resolve the concerns presented by the organisation. The additional data provided by this study allowed the company to successfully resubmit its new drug application for Sofdra in December. Botanix expects to be granted FDA approval for the drug by mid-2024.

In addition to Sofdra, Botanix has a range of products in its pipeline to treat moderate to severe acne, rosacea and atopic dermatitis, as well as an antimicrobial solution; all of these are in varying stages of development.

Year-on-year performance: 31.25 percent; market cap: AU$35.93 million; current share price: AU$0.11

IDT Australia is a contract manufacturing company that is licensed to make active pharmaceutical ingredients and finished-dose forms of medicines and treatments, including medicinal cannabis products for local and international markets.

IDT is one of a select group of drug manufacturers in the Australian pharmaceutical industry that can offer the specialised services necessary to produce certain types of high-potency medicines and treatments, including solid oral and sterile liquid dosage forms of high-CBD and high-THC options, resin extraction and other dosage forms upon request.

It’s also equipped to offer large quantities of plant-based materials, and its in-house analytical laboratory has a range of testing and stability services that fully adhere to current good manufacturing practices, making IDT an important link in the supply chain of medical cannabis products in Australia and internationally.

Year-on-year performance: 11.59 percent; market cap: AU$67.77 million; current share price: AU$0.08

Neurotech International (ASX:NTI) is another biopharmaceutical company, but instead of dermatology, the company has been conducting research on neurological therapies, with a particular focus on autism spectrum disorder (ASD).

Its leading treatment, NTI164, is derived from cannabis and is being developed to treat a range of neurological conditions in children where neuroinflammation presents. Phase I/II trials of the drug revealed that children taking a daily dose showed decreased levels of anxiety, irritability and hyperactivity, and researchers also noted an improvement in socialisation, increased school attendance and improved behaviour in the classroom.

With promising results in hand, Neurotech is now working to further explore the potential of cannabinoid-based therapies to improve the quality of life for those negatively affected by ASD and other conditions. On January 29, the company announced plans to begin Phase I/II trials of using NTI164 for cerebral palsy in paediatric patients.