BioMediCan Founder and CEO on Artificial-Cannabinoids

Bloomberg TV team. So we're seeing once again some activity when it comes to kind of the overall cannabis industry. But right now we want to talk a little bit more about synthetic cannabinoids. Several companies are pursuing just that, creating them cannabinoids that are engineered actually in a lab. And one company that is doing that is Biomedican, which notes on its website that it is already producing pharmaceutical grade organic, non GMO rear count of annoids. And here

to talk about it is Max mckeef. He is co founder, CEO, chief science officer at the biotech startup Biomedicn and he joins us on the phone from Fremont California. Max, nice to have you here with us. How are you and tell us about the work that you guys are doing. Girl, thank you for inviting for this call for this interview. So which is correct you mentioned that we allocated in

California for a month. I only want to get some provide some qualification that synthetic it's not an exactly correct name for kind of knoweds which we have producing because usually when people discussion synthetics, they usually taking account chemical synthegies. Chemical synergies are providing of course similar structure, but not always identical. One of the most famous example of um issues which chemical synergies or can provide it is, you know,

is a mirror. So basically it's when you have the same amount of atoms, but they are rotated in space a little bit differently. The most famous example here is trans fats. So basically, as you know, uh, fifteen years ago UH passion excratergenated oils and trans fats was commonly used in food industry, and like fifteen years ago, it was completely forbidden by FG to use for human consumption.

So the problem is that exactly in stereo structure, what we are doing we are we're using biosynthies by a synthesis providing exactly same structure, exactly same maleco got is present in plants in nature. So that's why I would really separate synthetic from biosynthesis. So so in other words, so you know, comparing it with um, you know something

that isn't synthetic naturally occurring. You're saying that you're using biosynthesis to create exactly the same molecular structure, but you're just doing this in a lab, right, Yes, yes, it is absolutely connect So where are you in this process? And I'm curious, um, you know, talk to me a little bit about you know, where you are, um in terms of getting products out to market. Mhm. So we'll already develop a several strains which can produce a kind

of any very high yield. Right now, we're preparing for pilot scale production, which you plan to start shortly. And once we'll have pilot scale, you'll start providing samples to potential customers and basically the next step after least will be of course scaling up for life scale production. So most likely will go initially contact manufunctional organizations to full life scale production. So wait wait, let me just max, let me just jump in. So, who will be who

will be purchased in this? Is this the same as you know the CBD markets that we spend so much time talking about here at Bloomberg and certainly we've got a bunch of publicly health companies who will be buying this. Yes, our target customers is the company which you're producing right now should be deep products and similar for end users.

So and basically they can just use our compounds and adds to their formulation directly so cure they usually buy and should be deep from growers and from from extraction using extraction from plants. Same, absolutely same. We could provide them our compounds which they can use an identical way. They will be able to add to the ittabiles, uh whites, cosmetics, anything. So,

so what's the advantage of going your way? Is it just a more controlled production able to ramp up more easily and you know, tell me what the advantage is over kind of naturally occurring CBD. Um Again, I want to clarified that we are not talking in at least initially CpG. We want to partner your company with companies who is producing CpG now and sell it, so we tig it and rend of knowledge. We're talking like CBG which present much low concentration and plants compared to CpG.

We also tried in KHTV and we're tared it in some other kind of annoyance. That's an example. We in August the file pattern for production of watching new class of kind of ainoyance. It's called Chris UHB is Gonna ben it. So the only serial mentioned about this cannabino ledge in in uh literature. So it was found in Champan in the cannabis, but nobody studied them yet actually made a really important distinction. That's synthetic can often mean chemical,

and that's not exactly what you guys are doing. That is not at all what you're doing. You use biosynthesis, which as we know, happens uh you know, naturally in nature to create um cannabinoids with the same molecular structure with the other thing. That's interesting and I don't think people know and we're still learning about kind of the

cannabis market and industry in general. There are more than a hundred different types of cannabinoids in cannabis, and you're going after some of those that aren't already out in the marketplace, Is that correct? It just connect so we're talative for example, like TV, it's coming to markets up and has a huge potential. It's for example, has antiam UH, it'scause uh neuroprotective etet and it has uddusition appetizi etect.

So it's can be used as an example to wasve control and eppetize control and take again like neuroprotective and help. What's neuroprotect to? Explained that to me if you would UM in some works pretty in the works not on human studies who were shown that CD potential can help against again and Parkinson. It's not tested on humans yet, but it was tested in some animal models. So this tell me a little bit thought too about the regulatory oversight.

I think this is something that we were trying to get control of and understanding of, certainly for the existing cannabis UH industry. I mean there's you know, the monetary issues that have to be dealt with, but I do also think about UM, you know, transparency in the market that every cannabis product, whether it's a CBD product, and I know you're doing something differently, you know there aren't necessarily standards like you have when they're you know, in

something that's organic, Um, there are standards. So what will be the oversight? What will be the standards so that consumers really understand becase I'm assuming this would be over the counter products, is that correct? Or would it be on the same level as pharmaceutical type products. I would argued in both markets because like of course I know it's it's mostly will go to pharmaceutical markets, but like CBN,

it's going to regular customers market. So on regulatory side, we have a really interesting position because a technically legal on federal level even now, even almost for all our compounds. It's because on federal regulations there are two lines in Schedule one. One is marijuana products and marijuana products defined as anything what produced from marijuana plants. We're using easts and it is not plans, so we are not marijuana product.

And the second line is KCC is a psychoactive canna be know it and it's more to use for recreational purpose. Th HCV is that what you said? I just want to make sure. Yeah, okay, DELTA and KHD it's mostly used for occasional purpose. And it's like her active. So typically is we cannot produce JC. We cannot produce JC isn't in California because California legalized marijuana products but didn't legalize JC. So, but all other econominoids is completely legal

for us. For example, we can produce CpG, it will be legal on your level. CTV also will be legal on your level, CBN, and many others. So we cannot produce only one. We cannot produce KC. Okay, that's interesting to know. So, UM just got about a minute or so left here. Um, the market size that you anticipated, what's the plans for your company? Do you anticipate UM linking up with a major brand that we already know some of these companies, whether it's a pharmaceutical company or

whether it's a consumer product company. Is that how you're going to do it or do you plan to kind of do it alone and potentially go private? What's the plan here? And just got about a minute left. Yeah, you're absolutely right. You're planning go through partnership with famous brands and pharmaceutical companies. We're not planning to stop our own brand. We don't take experience in our team police.

We prefer to concentrate on science and production and are there any partnerships there well known brands that you can talk about that you're working with right now. We have a recent science serial partnership and some of them was public unknownced um and we're working on multiple hours, but like can not disclose all of them. So yes, we work and be looking for partners were open for uh partnerships, Okay, all right, and that makes sense in terms of how

you're going to do it? Well, Max, certainly, um let us know how things are going, because this is certainly a new mark it or newer market, uh, and certainly a kind of a continuation of one that started just a few years ago. So it'll be interesting to see where it goes. Max mckefe. He is co founder, CEO, and chief science officer at the biotech startup Biomedic and

joining us on the phone from California. Go to Bloomberg dot com because our own Tiffany Carey wrote a story a couple of months ago, back in October that was talking how the race is on for synthetic count of anoids and as Max told you, uh, they're not all the same. But it's interesting, Uh, this exploration for alternative compounds that have really been set off by the CBD craze, so certainly something that is on our radar and certainly on the radar of investors.