Avicanna, a Canadian biopharmaceutical company, has announced a new deal with a major South American pharmaceutical company to license and supply its cannabinoid-based products in the region.
Avicanna’s Proprietary Formulations
Avicanna is a leader in the development and commercialization of plant-derived cannabinoid products for the medical and pharmaceutical market segments. The company has a global vertical integration that includes cultivation, extraction, manufacturing, and distribution of its products.
Avicanna has developed a range of proprietary formulations that are based on its advanced drug delivery platform and supported by pre-clinical and clinical data. These formulations include oral, sublingual, topical, and transdermal products that contain varying ratios of CBD and THC, as well as other cannabinoids such as CBG.
The License and Supply Agreement
According to the press release, Avicanna has entered into an exclusive license and supply agreement with a South American pharmaceutical company that has a presence in four continents and a strong commercial infrastructure in the region.
The agreement covers up to four of Avicanna’s proprietary cannabinoid-based pharmaceutical preparations, starting with its 10% CBD oral preparation. The South American pharmaceutical company will license Avicanna’s intellectual property and supply finished pharmaceutical products for commercialization in the region.
Avicanna can earn up to $1.3M CAD in initial licensing fees through achieving near-term milestones. The agreement also includes specific minimum order quantities and efforts for the South American pharmaceutical company to maintain the exclusivity.
The Potential of Cannabinoid Products
Cannabinoid products have shown promising potential for the treatment of various medical conditions, such as chronic pain, inflammation, epilepsy, dermatology, and neurology. However, the regulatory and scientific challenges of developing and commercializing these products have limited their availability and accessibility.
Avicanna’s partnership with the South American pharmaceutical company aims to overcome these barriers and bring its evidence-based cannabinoid products to the patients who need them. The company expects to leverage the established distribution and marketing channels of its partner to reach a large and untapped market in the region.
Avicanna’s CEO, Aras Azadian, commented on the deal: “We are very excited to announce this strategic partnership with a well-established and reputable pharmaceutical company that shares our vision of bringing plant-derived cannabinoid products to the medical and pharmaceutical markets. This partnership is a testament to the quality and innovation of our products and our global infrastructure that enables us to manufacture and supply them in a cost-effective and scalable manner.”
