Company Interview / Avecho looks to put insomnia to bed

Key points:

Avecho targets TGA registration of an over-the-counter CBD insomnia medicineSandoz is lined up as commercial partner for the Australian marketLarge global insomnia market and off-label potential seen as key driversGavin emphasises solid cash position and preference for non-dilutive funding

Paul Gavin from Avecho outlines plans to commercialise the company’s enhanced cannabidiol insomnia treatment, which is in a pivotal phase three trial. Gavin states the interim analysis passes key thresholds, allowing the study to continue and potentially support registration with the Therapeutic Goods Administration as an over-the-counter pharmaceutical. He notes there are currently no CBD-based insomnia medicines registered globally, positioning Avecho’s product as differentiated due to its absorption profile.

Gavin highlights Avecho’s partnership with Sandoz, which he says has already licensed the product for commercialisation in Australia once registration is secured. He views the addressable market as significant, pointing to insomnia affecting an estimated 10–30% of the population and suggesting wider demand from pain, anxiety and menopause patients. Gavin describes the Australian opportunity as very large, with longer-term ambitions for the US, Europe and other markets following discussions with the FDA and other regulators.

On funding, Gavin expects around $6.5 million in cash at the end of June, which he claims is sufficient to continue dosing and progress the trial. He reports strong interest from institutional investors, who see Avecho as a de-risked biotech with a pivotal phase three asset and a major pharma partner, and he prefers non-dilutive licensing over near-term capital raisings.