Axim Biotechnologies Inc (OTCMKTS:AXIM) Just Kicked Off A Value Driving Trial

Axim Biotechnologies Inc (OTCMKTS:AXIM) just announced that it has completed enrollment in its lead irritable bowel syndrome (IBS) trial, and the company has picked up a couple of percentage points on the news. Axim is still down close to 60% on its mid January highs, however, and we think that as this trial matures towards completion, we could see the company stage a recovery towards that price, and beyond.It's all about the data.The trial that just enrolled is, as mentioned, an IBS trial. There's nothing particularly exciting about that, but there is a degree of excitement surrounding the fact that the study is investigating the use of a cannabis derived compound to treat the condition – a world first, and one that offers plenty of potential even just from a sound-bite perspective as and when Axim puts out updates from the investigation.It's a world first, in a multi billion-dollar market, but that's not all – the drug in question isn’t just a cannabis compound, it's a cannabis based chewing gum. The idea that IBS patients can chew a gum to relieve them of symptoms of the condition, or even to rid them of the condition altogether, plays very nicely from a news release perspective.So what's the drug?Well, as mentioned, it's a cannabis based chewing gum, and it's called CanChew Plus Cannabidiol (CBD). The CanChew brand is something we've discussed before here at Insider Financial, primarily during our discussion of Medical Marijuana Inc (OTCMKTS:MJNA) – another cannabis play that owns a reasonably large stake in Axim. Basically, the idea is that by chewing the gum, the active compound (the CBD) gets into the bloodstream. Studies have suggested that the presence of CBD can influence motility, secretions and decrease hypersensitivity in the gut. Hypersensitivity is linked directly to the immobility that causes the IBS, and therein lies the MOA. Reduce hypersensitivity, increase mobility of whatever passes through the gut, and – in turn – remove the symptoms of IBS.There's a separate justification for this type of treatment as well, and its rooted in SOC inappropriateness. Many of the patients that suffer from IBS do so as a result of opioid use. The IBS will cause pain that physicians would often prescribe opioid based treatments to remove, but in this case (when the pain is – albeit indirectly – caused by opioids) this has obvious issues as a solution. The CBS that serves as the active compound in this treatment doesn’t act on the CNS like opioids would, so it's a valid solution for this patient group, which is otherwise a big unmet need.That is, of course, if it works, and that's what the trial is set up to prove.It's a 40 patient double blind trial with a 1:1 randomization. Basically, 20 patients will be given up to 6 doses of the CBD gum a day, while the other 20 patients will be given a placebo version of the gum. After 3, 5 and 8 weeks of treatment, both groups will record pain scores, and these pain scores will be compared to baseline. If the active arm (those that took the real gum) have improvements that exceed the control arm (those that took the placebo gum) then it shows that the chewing gum works. The primary endpoint is built around this measurement, and is defined as "Change of pain scores on the Visual analogue scale (VAS) between baseline and 3, 5 and 8 weeks of treatment".So what are we looking for next?Axim's near term valuation is going to be rooted strongly in the outcome of this trial, and it's a relatively short study, so we've got some real near term catalysts on the cards. Final data collection is slated for April 2017, so we should get some degree of insight at that point.Beyond that, study completion (and in turn, a topline readout) should hit press in June this year.The standard biotech risks apply here – the topline is a binary event and one that might not read out as favorable towards Axim. That said, as a small speculative biotech punt, it might make a pretty nice play.We will be updating our subscribers as soon as we know more. For the latest updates on AXIM, sign up below!Disclosure: We have no position in AXIM and have not been compensated for this article.