CPH set to expand in $300M Latin American CBD market

3 minute read

By Jonathan Jackson. Published at Jun 4, 2021, in ASX Biotechs

Creso Pharma Limited (ASX:CPH, FRA: 1X8) is set to take its product deeper into the Latin American market.

The expansion of its comprehensive distribution agreement with leading nutritional supplements company Route2 Pharm Pvt Ltd, will allow for distribution of CPH’s hemp derived therapeutic products sold under the cannaQIX® and CannaDOL brands into Ecuador.

Expansion of this agreement gives CPH access to the rapidly growing Latin American CBD market.

According to analytics company Statista, “the recreational legal cannabis market in Latin America and the Caribbean was forecast to reach nearly 300 million US dollars by 2024, up from an estimated value of four million dollars in 2020.”

The following graph indicates just how quickly this market is growing and how large it is becoming:

Market value of legal cannabis in Latin America and the Caribbean from 2020 to 2024, by type.
Market value of legal cannabis in Latin America and the Caribbean from 2020 to 2024, by type.

That the Latin American cannabis market is growing so rapidly is a widely held view:

CPH has the product range to capitalise, while Route2Health has over 30 years of pharmaceutical science experience and focuses on producing and distributing world-class herbal remedies and dietary supplements.

Together the companies, in association with Highnoon Laboratories (PSX: HINOON), which is principally engaged in the manufacture, import, sale and marketing of pharmaceutical and allied consumer products, will work together to leverage their combined international reach to include Ecuador to the existing agreed markets of Pakistan, Afghanistan, Azerbaijan, Bangladesh, Cambodia, Georgia, the Maldives, Myanmar, the Philippines, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.

Roll out subject to regulatory approval.

“The evolving regulations in Ecuador and the broader Latin American and Caribbean region present a tremendous opportunity for both our human and animal products and the extension of our distribution agreement with an established company such as Route2 provides the opportunity for millions of people to gain access to our innovative products,” CPH Non-executive Chairman Adam Blumenthal said.

“Our mission is to deliver access to affordable, high quality, broad spectrum, GMP products for the betterment of people’s lives everywhere. We are witnessing strong uptake across our entire product suite and this agreement provides further evidence of the considerable potential that the Company has in established and emerging markets alike.”

CPH currently has a portfolio of 13 products, eight of which have been commercialised and are generating consistent revenues, with the remaining pending commercialisation shortly.

Working together, CPH, and Pakistan-based Route2 and Highnoon will have truly global product reach in burgeoning markets.

Ecuador itself provides a large market opportunity for CPH as it recently passed legislation to approve the production, commercialisation, use and consumption of cannabis for medicinal or therapeutic treatment.

Ecuador’s population is 15 million-plus, while the broader Latin American and Caribbean region has an estimated population of 655 million.

“We are pleased to continue our investment in this partnership with leading global cannabis company Creso Pharma,” Tausif Khan, the Chairman of Route2 and Highnoon Laboratories said.

“Our teams’ joint efforts are making significant progress in key target markets and we are excited to leverage this momentum into additional territories. We share the commitment of Creso Pharma of bringing affordable, high quality products to market which improve peoples’ lives and we will continue to leverage the financial and marketing strength of our group to deliver on this mission.”

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!