Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have struggled with a shortage of cannabis retail stores, especially in the key Ontario market. At the end of 2019, there were only about 25 cannabis shops open in Ontario, which is enough to serve a province of more than 14 million consumers. However, the Ontario administration recently stepped in to address this problem and more stores are expected to open in 2020. Still, makers of adult-use cannabis products in Canada have to contend with a thriving black market. Tetra doesn’t face these problems.

But the most exciting thing about Tetra in 2020 is its drug products going on sale this year. This is an important development that will keep drawing more investors to the stock as they realize how Tetra’s outlook is about to change dramatically.

Tetra Bio-Pharma secures Health Canada approval to bring its TERPACAN drug products to market

Tetra Bio-Pharma recently received Health Canada approval to begin commercialization of its two Terpacan drug products in the country. One of the Terpacan products is meant for the treatment of hemorrhoids and the other is meant for back and muscle pain.

Tetra intends to bring the Terpacan products to market as soon as possible. Toward that end, the company announced on January 20 it has selected a manufacturing partner that will produce the drugs. Moreover, Tetra has selected a sales partner that will market and distribute its Terpacan drugs in Canada. Tetra emphasized that it picked a sales partner with a good track record. Tetra targets its Terpacan products to hit drugstores by June 2020.

While the Terpacan drugs will initially go on sale in Canada, Tetra has set its sights on the US market as well. It is currently awaiting final approval from the US Food and Drug Administration to begin commercialization of Terpacan products in the US.

Tetra signs Azevedos to sell its pain drug Caumz in Portugal

In addition to Terpacan, Tetra’s other drug product is Caumz, which is designed for the treatment of pain and inflammation. In December, Tetra signed respected Portuguese pharmaceutical brand Azevedos Indústria Farmacêutica to market and distribute Caumz in Portugal. Under that arrangement, Tetra will receive milestone payments and share profits from the sale of Caumz.

The chronic pain treatment market that Tetra is targeting with Caumz was worth $69.3 billion in 2017 and is on track to hit $105.9 billion by 2024.

Tetra forms joint venture to enter Irritable Bowel Syndrome treatment market

In August last year, Tetra teams up with Thorne Research and Onegevity Health to form a joint venture business called CB2 Therapeutics. Among other things, CB2 Therapeutics will focus on developing treatments for irritable bowel syndrome. The global irritable bowel syndrome treatment market was valued at $2.6 billion in 2018 and is on course to grow to $8.7 billion by 2025.

Bottom line

Investors still have memories of the broad collapse of cannabis stocks last year. That is why in 2020 investors are carefully screening pot stocks for the best of the breed. In light of what we’ve just seen above, Tetra Bio-Pharma is no doubt a strong candidate.

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Disclosure: We have no position in Tetra Bio-Pharma and have not been compensated for this article.