The University of Waterloo has inked a sponsored research agreement with Algae Dynamics Corp. to perform fundamental research on cannabis oil and its constituents, with an eye toward developing treatment of cancers of the colorectum, pancreas, breast and prostate.

This announcement follows the Algae Dynamics previously announced new strategic initiative to explore the extraction of oils from other botanicals in addition to algae, most notably cannabis, and to seek product development and formulation opportunities that combine the benefits of algae and cannabis oils.

The three-year agreement calls for the company to provide C$200,000 per year in research funding. According to Algae Dynamics, it will be able to add to that with matching scientific grants from the Canadian government.

The company will be responsible for the patent filings and will own any patents arising from the research. U Waterloo will receive milestone payments upon filing of each patent, when each patent is issued, after first commercial sale, and when gross sales reach C$1,000,000. No ongoing royalty payments are involved in the deal.

The company’s core product development strategy has focused on extraction of Omega-3 fatty acids from certain algae strains containing with high concentrations of DHA, which is the foundation of the endocannabinoid system (ECS). The ECS is a group of endogenous cannabinoid receptors located in the mammalian brain and throughout the central and peripheral nervous systems, consisting of neuromodulatory lipids and their receptors. Omega-3 fatty-acids are required for the production of ECS and cannabinoid receptors. In light of the potential synergies, the company plans to develop new products and formulations that combine the health benefits of algae and cannabis oils.

Paul Ramsay, Algae Dynamics’ chairman and president, said, “with this research agreement, we are building upon the previously announced strategic initiative into the use of extracts from cannabis oil, in conjunction with algae oil, to develop unique health products and formulations. In our previous press release, we outlined a three-part approach, the first being research and development work with Canadian universities. This is the first of such research agreements relating to the use of botanical extracts including cannabinoids that we expect to employ.”

The investigator leading the research is Dr. Jonathan Blay, a professor and researcher in the School of Pharmacy at the University of Waterloo. Dr. Blay has an extensive background in cancer research, focusing primarily on understanding the tumor microenvironment of solid cancers, particularly cancers of the colorectum, pancreas, breast and prostate. His laboratory focuses on mechanisms that lead to the spread of cancer, or metastasis, and ways to interfere with that dissemination of disease using novel therapeutics.