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Creso Pharma is a step closer to unlocking Australian market
3 minute read
Creso Pharma Limited (ASX:CPH, FRA: 1X8) has today obtained an exclusive Heads of Agreement (HOA) with leading natural, sustainable health and lifestyle brand supplier Martin & Pleasance Pty Ltd.
The agreement could see Creso Pharma capitalise on opportunities to supply cannabidiol (CBD) products to the Australian market.
Martin and Pleasance (M&P) provides an extensive range of natural remedies and medicines to consumers, with a particular focus on pioneering new and emerging products.
Established over 150 years ago and 100% Australian owned, M&P has a strong Australian presence; directly servicing over 4,000 Pharmacies across Australia and New Zealand, in addition to established online sales channels and additional distribution partners in the UK and Canada.
Under the non-binding agreement agreement, the parties have confirmed their intention to negotiate and enter into a formal binding and exclusive Collaborative Agreement on or before 30 April 2021, under which Creso Pharma will look to manufacture a range of CBD products in Switzerland, which would be sold under new and existing Martin and Pleasance brands in Australia.
Creso Pharma has earmarked four products from its proprietary nutraceutical range in lozenge and tea form, which are all manufactured in a GMP certified compliant facility.
This news follows an interim decision from the Therapeutic Goods Administration (“TGA”) to down schedule CBD products to schedule 3 medicines in Australia, which would allow adults ages 18 or over to purchase CBD products over-the-counter through pharmacies without the requirement of a prescription.
The TGA’s final decision is expected to be delivered in the coming weeks, and entry into the proposed Collaborative Agreement with M&P remains subject to a positive outcome from the decision.
The agreement sets a framework for Creso Pharma to respond quickly to a favourable TGA decision and directly access the Australian CBD market, which has a projected value of ~$200m.
The last few weeks have been kind to Creso, as it has received several purchase orders, the most recent from the Province of Ontario in Canada.
Promising regulatory changes from the United States, European Union and the United Nations have also accentuated the potential medical properties of cannabis and subsequent commercial value, which has had a favourable impact on CPH's share price.
CPH recently saw share price gains of over 1300%, achieving a 12 month high of 46 cents earlier this week, up from 3.1 cents a fortnight ago.
Creso Pharma Non-Executive Chairman, Adam Blumenthal explained: “The planned down scheduling of CBD products in Australia paves the way for Creso to introduce its unique and sophisticated range of GMP products and capitalise on what is expected to be a large market opportunity.
“Martin & Pleasance have a leading reputation in Australia, as well as established sales channels which would directly benefit Creso Pharma. We are excited to jointly develop this opportunity with them and expect our products to be very well received by consumers.”