A study found that 3 of the strains tested were able to inhibit cytokine storms and mitigate future risks of developing pulmonary fibrosis.
The company says it is only months from launching its product in Israel and plans to enter the US market next year.
The innovative topical spray is expected to effectively treat atopic dermatitis, psoriasis, pain and lesions.
Over 1 in 5 Israelis have refrained or delayed medical treatment for fear of catching the disease.
The current widely accepted treatment for acute pain involves a mix between highly-addictive opioids and other pain relief drugs.
Germany is home to the fastest-growing medical cannabis market outside the US.
Together currently operates two medical cannabis greenhouses in Israel and Uganda and is able to produce roughly 30 tons annually.
Recreational market expected to rake in billions of dollars; CBD-infused cosmetics and food also set to hit supermarket shelves
Only last month, Panaxia became the first Israeli medical cannabis company receive a commercial export license.
While Israel first approved medical cannabis exports almost two years ago, issues with Ya'acov Litzman's 2017 reform have caused the process to stall