Oxford Cannabinoid Technologies Holdings (OCTH), one of the few pharmaceutical cannabis firms remaining in the UK, has reportedly entered administration. The company, which operates through its trading entity Octavian Therapeutics, had relied heavily on investments to fund its clinical trials. Although no official announcement has come from OCTH or its appointed administrators, Rushtons Insolvency Limited, multiple public filings confirm the administration status.
The administration of OCTH highlights a broader crisis in the global biotech industry, particularly affecting US companies. The biotech sector has faced widespread job cuts and a slowdown in mergers and acquisitions, with public investment opportunities largely ceasing.
On May 9, 2025, the appointment of administrators for OCTH was published in The Gazette, the UK’s official record for insolvency proceedings. The filing indicates that Nicola Baker of Rushtons Insolvency Limited took over as administrator on May 2, 2025. Despite attempts by Business of Cannabis to reach OCT and its communications provider, no responses have been received. However, a statement from AIM-listed Dillistone Group Plc confirmed that Julie Pomeroy, a non-executive director at OCTH, informed them of the company’s administration on the same date.
The future of OCT’s intellectual property (IP) is now uncertain. As a pre-revenue company, OCT’s value is primarily derived from its IP assets. As of July 30, 2024, OCT held several patents for its lead clinical asset, OCT461201, a small-molecule CB2 agonist aimed at treating diabetic peripheral neuropathy, chemotherapy-induced peripheral neuropathy, and irritable bowel syndrome. This asset was slated to enter Phase II clinical trials in 2025, backed by eight patents covering markets such as the US, Canada, and China. OCT projects that the market potential for its drugs could exceed $5.8 billion by 2030.
In February 2024, leading independent research firm Edison valued OCT at £25.3 million, which was significantly higher than its market capitalization at the time. This valuation was largely based on the anticipated market entry of OCT461201 in 2030, with additional upside expected from its second compound, OCT130401, which targets trigeminal neuralgia.
In 2021, OCT secured an exclusive worldwide licensing agreement with Canopy Growth Corporation, granting OCT the rights to an extensive library of pharmaceutical cannabinoid derivatives. This library initially contained 335 derivatives and associated IP rights, which have since expanded to nearly 500 proprietary compounds. The potential value of these assets is substantial, depending on how they are managed following the company’s administration.
Despite making strides under the leadership of Clarissa Sowemimo-Coker, OCT faced continuous funding challenges, exacerbated by a tightening financial environment. In May 2024, Sowemimo-Coker indicated that the company’s decision to exit the public market aimed to tap into larger private investment pools. However, their recent fundraising campaign targeting £10 million encountered difficulties, likely due to investor hesitancy linked to changing political landscapes and budgetary cuts in the US health agencies, which have created challenges for biotech companies.
The collapse of OCTH represents a significant loss for both the pharmaceutical cannabis sector and the UK biotech industry. It reflects ongoing struggles in a sector that has been severely underfunded and highlights the risks associated with the biotech market, where companies face increased hurdles in securing investments and navigating clinical trials.
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