CPH expands its footprint with new product launch and entry into Eastern Europe
It has been a big week for Creso Pharma (ASX:CPH).
This week the company made three important announcements:
- Wholly owned subsidiary Mernova Medicinal Inc. was awarded Craft Designation by the Ontario Cannabis Store (OCS).
- CPH has finalised the development of anibidiol® swine, a new and innovative hemp flour and oat bran based complementary feed product.
- CPH will enter the Polish animal health market after signing a Letter of Intent with Polvet Healthcare Teodorowski Spółka Jawna.
It all started on Monday when wholly-owned Canadian subsidiary Mernova Medicinal Inc., one of a select group of licensed cannabis producers, was awarded Craft Designation by the Ontario Cannabis Store (OCS).
OCS is owned by the Province of Ontario and reports directly to the Ministry of Finance. It is the province’s only retailer and wholesaler of legal recreational cannabis.
This designation is an important in that it will provide Creso Pharma with much broader visibility in a competitive market, while highlighting the superior quality of Mernova’s products as the company continues to achieve strong sales growth across Ontario.
On Wednesday, CPH finalised the development of anibidiol® swine, a hemp flour and oat bran based complementary feed product designed to support stress reduction and well-being with pigs reared indoors and outdoors.
The new product is part of CPH’s strategic portfolio expansion and provides it with an entry point into the livestock market.
anibidiol® swine was developed to address tail biting in pig herds, which is a common problem and can result in lesions that may decrease the value of the animal at slaughter.
A common cause of tail biting is stressor discomfort, with the action diverting the animal’s attention.
anibidiol® swine is designed to help alleviate that stress.
Previous reports have shown a positive impact when using hemp plants to reduce pig stress and pig tail biting.
The livestock and swine feed market provides a very lucrative opportunity for CPH. IMARC Group expects the global swine feed market to reach a value of US$170 Billion (AU$218) by 2026, with a population of over 150 million pigs in Europe and 67 million pigs in Latin America.
anibidiol®swine was developed to address the large need expressed by farmers for an effective, natural and plant based complementary feed to support the reduction of stress and swine tail biting,” CPH’s Commercial and Development Director, Dr. Gian Trepp said.
“The development follows considerable work undertaken by the Creso Pharma team and we are very pleased to have this product ready for launch on a global basis. We anticipate that the launch will provide access into another lucrative vertical for the Company and contribute to the Company’s growing revenue streams.”
Strong finish to the week
The company has finished the week strongly.
CPH announced this morning that has signed a non-binding, non-exclusive Letter of Intent (LOI) to progress a commercial agreement with Polvet to market and distribute its animal health products for companion animals and livestock in Poland.
The agreement will expand CPH’s European footprint and marks its first entry into Eastern Europe.
Polvet will distribute CPH’s anibidiol® granules hemp flour based, oils for pets and anibidiol® hemp flour based for large companion animals and livestock.
Polish representation could be big for CPH, with the country being one of the largest pet markets in the Central-Eastern European region. The Polish animal health market more broadly is substantial and based on 7.7 million dogs, 6.6 million cats, and 11 million swine.
The agreement covers the following Creso Pharma products:
- anibidiol® 8
- anibidiol® dogs treats
- anibidiol ® EQUI
- anibidiol® SWINE
The initial term of the Polvet agreement is for one year.
“We are very proud to announce this new commercial relationship with Polvet Poland, which has been operating in animal and human health for over a decade, representing a perfect fit for both companies to expand operations into the Polish market,” CEO of Swiss International Operations, Jorge Wernli, said.
“This is a key milestone entry into a growing economy and a first step to strengthen Creso’s presence in Eastern Europe.”