Creso forges important partnership with high profile Swiss Pharma group

By Trevor Hoey. Published at Oct 27, 2016, in ASX Biotechs

Shares in Creso Pharma (ASX:CPH) have soared since listing on the ASX last week, hitting a high of 39 cents, representing an 95% increase relative to the IPO price of 20 cents.

There have been a number of factors contributing to the strong share performance including positive sentiment towards stocks leveraged to cannabis derived therapeutic grade products. Where CPH has a point of difference on the ASX is its focus on the nutraceutical market.

However, it is not recommended that investors use historical share price performances alone to make an investment decision. Seek tailored professional financial advice before making an investment in a speculative stock such as CPH.

Today’s announcement regarding the forging of an important distribution relationship with a Swiss pharmaceutical group is arguably the most significant development in CPH’s short history as an ASX listed company, and has the potential to provide substantial share price momentum.

Finfeed flagged a potential game changer for CPH earlier in the week when it pointed to the prospect of the securing of a distribution agreement and/or binding letters of intent with European and North American partners.

This has duly unfolded with CPH announcing today that it has signed a binding Letter of Intent (LOI) with Swiss pharmaceutical firm, Streuli Pharma AG for the commercialisation of its proprietary first human nutraceutical product based on the INNutri Soft GumsTM technology in the Swiss market.

Importantly, the partnership will facilitate CPH’s products being added to Streuli Pharma’s distribution network.

To provide an insight into the importance of this relationship, Streuli Pharma has been established for 150 years and currently manufactures over 150 million tablets and capsules per annum, as well as 4 million ampoules and various other galenic forms such as ointments gels and suppositories. The group’s products are manufactured, inspected and distributed in Switzerland, an important “reference market” known for its stringent quality, safety and performance requirements around the world.

With regard to the nutraceutical therapeutic products based on INNutri Soft GumsTM, they will use an innovative and proprietary delivery technology allowing for an optimal bioavailability and absorption of the cannabis and hemp derived phytocannabinoids into the body – so that their full therapeutic benefit is achieved.

Creso Pharma Chief Executive and co-founder, Doctor Miri Halperin Wernli highlighted that the product will be easier to ingest than regular gelatin based products as they are starch based and devoid of animal ingredients, and are around 60% cheaper than gelatin capsules.

Another advantage is that they will meet the needs of consumers with a broad range of dietary requirements, including vegan, halal and kosher, as well as gluten and lactose free.

The nutraceutical market is expected to reach US$205 billion by 2017, indicating the potential upside that this commercial relationship could deliver. Furthermore, the nutraceutical ingredients market is forecast to reach US$34 billion by 2018 with the Swiss market alone estimated to be worth US$400 million.

Management highlighted that CPH is pursuing further commercialisation partnerships for the sale of this product across other regions of Europe including the Benelux countries, Italy and Spain, as well as in Canada, Latin America and the Gulf states.

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.

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