SASKATOON, Saskatchewan & WATERLOO, Ontario--(BUSINESS WIRE)--CanniMed Therapeutics Inc. (TSX: CMED) (“CanniMed”) and Avaria Health & Beauty Corp. (“Avaria”) today announced that they have signed a letter of intent for the distribution of topical medical cannabis products, product development and clinical research.
The first phase of collaboration, upon signing of the definitive agreement, will launch by the end of calendar year 2017. Registered CanniMed patients looking to use medical cannabis topically will have the opportunity to purchase the new topicals kit, containing their choice of either CanniMed® Oil 10:10 or 1:20 and Avaria Health & Beauty’s Kalaya™ Naturals-based carrier. At home, the patient will combine the two products for topical application.
“Patients have a strong desire to apply their medical cannabis products directly onto affected joints and muscles, specifically to help combat symptoms of chronic pain,” said Brent Zettl, President and CEO of CanniMed. “Our strategic alignment and partnership with Avaria Health & Beauty, a Canadian leader best know for their naturally-based Kalaya topicals, will help facilitate a more immediate market penetration. The focus on quality standards and clinical processes will be the cornerstone of future product development, specifically a combining our cannabinoids with their topical technologies.”
The companies plan to embark on a number of projects, including clinical trials using Avaria’s patented Liposomal Technology in the development of new topical products, and pursuing international expansion opportunities.
“Our medically directed research and development team is excited to collaborate with the recognized leader of Licensed Producers, CanniMed,” said Dr. Keith Burk, CEO of Avaria Health & Beauty. “We welcome this opportunity to research and develop innovative and unique topical delivery systems that offer new options in the treatment of pain. Together, we share the goal of improving quality of life for patients throughout Canada.”
The letter of intent, which is non-binding, contemplates that the parties will negotiate and enter into an exclusive worldwide supply agreement for the distribution by CanniMed of topical products containing cannabis oils using Avaria’s topical creams. The first of the products is ready for market, while others will be developed by CanniMed and Avaria. The distribution of products will be on normal commercial terms and will be subject to compliance with applicable regulatory requirements. In addition, CanniMed will be the exclusive worldwide licensee for certain Avaria brands, including Kalaya™, for cannabis topical products.
About CanniMed Therapeutics Inc.
CanniMed is a Canadian-based, international plant biopharmaceutical company and a leader in the Canadian medical cannabis industry, with 16 years of pharmaceutical cannabis cultivation experience, state-of-the-art, GMP-compliant production process and world class research and development platforms with a wide range of pharmaceutical-grade cannabis products. In addition, the Company has an active plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications.
The Company, through its subsidiaries, was the first producer to be licensed under the Marihuana for Medical Purposes Regulations, the predecessor to the current Access to Cannabis for Medical Purposes Regulations. It was the sole supplier to Health Canada under the former medical marijuana system for 13 years, and has been producing safe and consistent medical marijuana for thousands of Canadian patients, with no incident of product diversion or recalls.
About Avaria Health & Beauty Corp.
Privately owned and operated since 1995 by experienced medical professionals, Avaria Health & Beauty Corp. specializes in the formulation, manufacturing and sale of topical creams, oils, emulsions, liquids, lotions, gels and salves. Avaria has earned an international reputation for its premium health, wellness and beauty products, proven to be among the most technologically advanced and efficacy-based products on the market today.
Avaria’s branded line (including Kalaya™ Naturals) enjoy distribution throughout Canada at all levels of retail and both the branded and private label formulations can be found in most levels of over-the-counter retail domestically, as well as in select international markets.
Avaria Health & Beauty Corp. has enjoyed sustained and measurable growth in both branded retail and private label contract manufacturing since 1997.
For more information regarding Avaria Health & Beauty Corp., please visit our website: www.avariahb.com.
Notice Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding the intent to enter into definitive supply and licence agreements, future development of products, future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CanniMed Therapeutics Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risk that the parties will not reach definitive agreements and therefore will not enter into the relationship with Avaria described in this release, the risk that products will not be successfully developed or developed in a timely manner, the risk that certain products will not receive regulatory approval and the risks described in CanniMed Therapeutics Inc.’s documents filed with applicable Canadian securities regulatory authorities which may be viewed at sedar.com. The forward-looking statements included in this news release are made as of the date of this news release. CanniMed Therapeutics Inc. does not undertake to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, unless required by applicable securities legislation.