E SciSparc Might Become The Next GW Pharmaceuticals

There are 3.5 million children and adults with autism in America. with the number of autistic children rising in the U.S., at the rate of 6.2% per year. The CDC now estimates that 1 in 54 children born in the U.S. are autistic.

Given the market potential there are some major players involved, such as Johnson & Johnson Services, Inc., Bristol Myers Squibb, Otsuka Pharmaceutical Co., Ltd., Pfizer Inc, Roche Group, Allergan, Q BioMed Inc., AstraZeneca, Behavior Innovations, and Hopebridge, LLC so SciSprac has lots of company.

The global market for Autism Spectrum Disorder (ASD) is growing at 4.3% CAGR and should reach US$4.5B by 2026. Were SciSprac's SCI-210 product eventually approved by the FDA a modest 0.5% share of that market by SciSparc would equate to potential revenue of approximately $22.5M annually although such a possibility would not materialize until the end of the decade at the earliest.

SCI-210: Epilepsy

Epilepsy refers to a chronic neurological disorder which causes constant and unfounded seizures caused by some traumatic incident or past brain injury. The major factors driving the epilepsy treatment market are the increase in the number of accidents and brain injuries, the high rate of post-traumatic epilepsy (PTE) and post-traumatic seizure (PTS) occurrence in patients with brain injuries, and the spike in neurological disorders such as depression and Parkinson’s. The increase in funding by the government to enhance and develop effective drugs and treatments for seizures and the rise in the research and development activities to provide advanced healthcare facilities accelerate the epilepsy treatment market growth. Additionally, a growing geriatric population, a rise in awareness about the treatment options available, and price erosion of the treatments positively affect the epilepsy treatment market. According to the World Health Organization report on epilepsy, nearly 50 million have epilepsy.

According to the latest report by Market Research Future the global epilepsy market size is expanding at 8.2% CAGR and is poised to reach US$9.5B by 2023 and, if the trend continues as expected, should reach US$13B by 2027. Were SciSprac's SCI-210 product eventually approved by the FDA a modest 0.5% share of that market by SciSparc would equate to potential revenue of approximately $32.5M annually although such a possibility would not materialize until the end of the decade at the earliest.

Some major players of the epilepsy drugs market include GW Pharmaceuticals, UCB Pharma, Sanofi, Valeant Pharmaceuticals, Johnson & Johnson, Eisai Co, Abbott Laboratories, Novartis, GlaxoSmithKline, Sunovion Pharmaceuticals, and Cephalon.

In summary, assuming SciSprac's SCI-110, SCI-160 and SCI-210 drug development programs were all successful and received FDA approvals for commercialization, and assuming a modest, albeit arbitrary, 0.5% market share for each of the 6 disease treatments, the revenue potential for SciSparc could possibly reach US$336M by 2030.

Conclusion

In-depth research of the company's management and finances, products under development, diseases being addressed, the drug market sizes of each, and the companies competing for business there, suggests that SciSparc Ltd. has potential but I question the merit of investing in the company at this point in time. In spite of that, however, it belongs on your watch list. All it takes is for:

  • one of its products under development to get approved by the FDA and become a blockbuster hit or
  • for another up-and-coming company to acquire it.
    • GW Pharmaceuticals, for example, continues to soar going up 142% in just the last 4 months (as of mid-March) with its purchase by Jazz Pharmaceuticals and
    • Zenabis Global has soared by 133% in just 3 months with the announcement that it is being acquired by Hexo Corp.

Either of the possibilities would cause SciSprac's stock to soar, too, so SciSprac is for the patient investor. Either keep watch and jump in when developments dictate or buy now and hold for the foreseeable future.

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Disclosure: This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their time ...

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Alpha Stockman 1 month ago Member's comment

Good read, thanks.

William K. 1 month ago Member's comment

Quite a serious bit of coverage and analysis in this article. Thanks.

Bill Johnson 1 month ago Member's comment

Agreed. Nice to see.

Terrence Howard 1 month ago Member's comment

Sounds promising.

Joel Santiago 1 month ago Member's comment

When will CannAmide be available outside of Canada?

Adam Reynolds 1 month ago Member's comment

Why is there nothing on SciSparc's website? Unless there is something wrong with my internet, every page is blank except for the homepage, and that is practically blank.

https://scisparc.com

Kurt Benson 1 month ago Member's comment

Thanks for putting $SPRCY on my radar!