Jupiter Wellness (JUPW) has an Accretive Acquisition in Process, is Generating Revenue and Conducting Clinicals for CBD Medicine
Good day everyone,
We are initiating coverage on Jupiter Wellness, Inc. (NASDAQ: JUPW), a developer of cannabidiol (CBD) based medical therapeutics and wellness products.
Current price/share $4.59
Outstanding shares (est.) 11.4M
Shares in float (est.) 5.89M
Insider ownership 41.9%
52-week high/share $8.88
Revenue FYE 12-31-20 $1M
Market cap $53.3M
The company’s clinical pipeline of prescription CBD-enhanced skin care therapeutics address indications including eczema, burns, herpes cold sores, and skin cancer. Jupiter generates revenues from a growing line of proprietary over-the-counter skincare products including its flagship CaniSun™ sunscreen.
Jupiter has grown its CBD-based consumer wellness business to include 40 products across seven brands in six categories, while also advancing its clinical pipeline with three indications in Phase 1 equivalent studies and one indication ready for an Investigational New Drug (IND) application with the FDA based on a successful Phase 1 equivalent which met its primary endpoint.
JUPW has a lot going on right now, a new website to sell its products through, and an accretive acquisition in process. The company seems to be aiming for high growth in the massive CBD market sector. The very tiny float, modest market value, and large insider position could indicate a value proposition for stakeholders.
When we look at the company stock chart, we see that JUPW shares have just crossed their 50 DMA of $4.51/share in a bullish manner (the 200 DMA is undetermined).
CBD is big business. According to Grand View Research, “the global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a CAGR of 21.2% from 2021 to 2028. Due to its healing properties, the demand for cannabidiol (CBD) for health and wellness purposes is high, which is the major factor driving the market growth.” Rite Aid, CVS Health, and Walgreens Boots Alliance all offer CBD topicals.
On April 20th, JUPW announced a non-binding letter of intent to acquire a 51% share of JustCBD with the potential to acquire the remaining 49%. JustCBD is a leading global manufacturer, retailer, and wholesaler of consumer CBD products with over 300 SKUs across a wide variety of categories. This accretive acquisition could ultimately add JustCBD’s reported $28M in revenues to the JUPW top line.
The pharmaceuticals segment dominated the Cannabidiol (CBD) market and accounted for the highest revenue share of 42.8% in 2020. This rapidly progressing transformation of cannabidiol from herbal preparations to prescription drugs is anticipated to boost the growth of the market.
We urge you to investigate the JUPW Investor Presentation as a part of your due diligence, it is both thorough and informative.
We have all seen a plethora of companies infusing CBD into just about every kind of products from beverages, tinctures, lotions, and many more just to be in the CBD market. JUPW is one company pursuing the pharmaceutical side of the CBD sector.
The JUPW pipeline is a key component in the company’s growth potential:
(JW-100) for eczema:
CBD & Aspartame (ASN) (Cox-2 inhibitors). Clinical Trial Completed (February 2021). Jupiter plans to file an IND with the FDA. Jupiter is preparing for a meeting in Q3 2021 with the U.S. Food and Drug Administration (FDA) regarding the Company’s Investigational New Drug (IND) application that it expects to file. The Company will propose its clinical protocol for a Phase I/II study based on the efficacy and safety shown in the recently completed exploratory study of JW-100 for the treatment of atopic dermatitis (eczema).
(JW-200) for skin cancer:
CBD & Aspartame (ASN) (Cox-2 inhibitors). Clinical study initiated. The objective of this double blinded, placebo-controlled study is to evaluate the efficacy of JW-200 in both the treatment and prevention of disease, with a primary efficacy endpoint of the percentage of patients with complete clearance of AK lesions. An estimated 120 adults diagnosed with AK will be recruited, with an expected study completion date of Q4 2021.
(JW- 300) for first degree burns:
Works through Endocannabinoid System (CB2 receptors) and inhibition of proteolytic enzymes involved in inflammation and pain. JW-300 is being evaluated in a clinical study for the treatment of first-degree burns resulting from sun exposure. The trial is expected to be completed in Q3 2021, with topline data expected Q4 2021.
(JW-400) for herpes/cold sores:
CBD & Aspartame (ASN) (Cox-2 inhibitors). The company is expected to begin a study by Q4 2021.The double blind, placebo-controlled study is now preparing for recruitment of 40 patients with recurrent herpes labialis infection (HSV) who had their initial infection more than one year prior.
This is the JUPW lead product accounting for most of its revenues. It’s a CBD infused reef friendly SPF sunscreen formulations, Comes in lotion, continuous spray & lip balm. Manufactured with FDA approved sun care actives using proprietary patent pending formulas.
CANISKIN Moisturizing Lotions:
Moisturizing Body Lotion with CBD and a patented formula.
Jupiter Wellness Hand sanitizer and PPE.
CBD Caring Expands Marketing & Brand Portfolio:
Leverage existing relationships to expand distribution and sales. The company has created a website to sell their own, and others, CBD products.
The company has a Multi-Year Agreement with golf legend Ernie Els to utilize his name, endorsement, and likeness to advertise, promote and sell CaniSun, CaniSkin and CaniDermRx.
Who does Jupiter compete with?
Charlotte’s Web Holdings $642M
Curaleaf Holdings, Inc. $10.5B
Village Farms Int’l $833M
These competitors indicate just how large companies in the CBD business can get. With a current market value of only $53M, JUPW seems to have room to grow. Again, JUPW can be separated from most CBD companies in that it is pursuing pharmaceutical product development in the CBD sector.
JUPW became a public company on November 3rd, 2020, so it’s not a new IPO. That said, there are so many companies in the CBD sector that JUPW is likely still under the radar of many investors.
There are a lot of things to like about JUPW including a tiny float that could cause the shares to move toward a near term gain, and the potential for a catalyst created by any FDA news or news regarding their potential accretive acquisition of JustCBD.
We will be back with more on JUPW.
The Traders News Group
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