SASKATOON, Saskatchewan--(BUSINESS WIRE)--CanniMed Therapeutics Inc. (TSX: CMED) (“CanniMed” or the “Company”) is pleased to announce that it has entered into a global marketing and distribution agreement (the “Agreement”) with the leading global pharmaceutical compounding company Fagron NV of Rotterdam, The Netherlands (Euronext Brussels: FAGR and Euronext Amsterdam: FAGR). Under the Agreement, Fagron and CanniMed will work closely together in utilizing Fagron’s extensive infrastructure to supply CanniMed’s medicinal cannabis products in Germany and other specified countries. Pursuant to the terms of the Agreement, CanniMed is working to supplement its Canadian GMP compliant status with GMP certification in Europe for its cannabis products, which it anticipates will be achieved in Q2 2018. Fagron and CanniMed anticipate first product sales into Germany will commence in Q3 2018, subject to obtaining required export permits.
Pursuant to the Agreement, CanniMed is Fagron’s supplier of cannabis products in the specified countries and the two companies will commit resources to develop and execute a combined marketing and distribution strategy to establish CanniMed as a strong brand in these countries.
“Fagron is perfectly positioned in the highly attractive German market as well as several other countries to drive the penetration of our pharmaceutical grade cannabis products. Our first primary target market, Germany, is particularly exciting as it has legalized medicinal cannabis for distribution through pharmacies and with a population of over 82 million which is more than double that of Canada” said Brent Zettl, President and CEO, CanniMed. “Fagron brings the connections, experience and market credibility to be a highly impactful partner for us internationally. We anticipate that the majority of medicinal cannabis products demanded in these countries will be oils and oil derivate products such as capsules, sublingual wafers and topical creams. The first 12 million 60 ml bottles phase of our 50 million bottles per year oils plant will be coming onstream in late 2018 and will be the foundation for meeting escalating international and domestic medicinal oils demand.”
Rafael Padilla, CEO of Fagron stated “We are very pleased to be working with an industry-leading company such as CanniMed and we believe the German market is a prime target for CanniMed’s highly respected cannabis products, driven by widespread acceptance in Germany of the many medicinal benefits of cannabis. We believe CanniMed has the opportunity to become a long-term major medicinal brand in Germany, where demand for medicinal cannabis products exceeds supply. We are confident that our depth of cannabis and pharmaceutical experience together with our established marketing infrastructure and connections in Germany and other countries combined with CanniMed’s leading expertise and products will be very effective in achieving international market penetration of CanniMed’s products.”
About CanniMed Therapeutics Inc.
CanniMed is a Canadian-based, international plant biopharmaceutical company and a leader in the Canadian medical cannabis industry, with 17 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.
CanniMed, 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 cannabis system for 13 years, and has been producing safe and consistent medical cannabis for thousands of Canadian patients, with no incident of product diversion or recalls.
About Fagron NV
Fagron NV, located in Waregem, Belgium and with operational head office in Rotterdam, The Netherlands, is publicly listed (FAGR) on Euronext in Brussels, Belgium and Amsterdam, The Netherlands. Fagron has over 2,000 employees and is active in 34 countries around the world, with a focus on the core regions Europe, South America and the United States. Fagron is a leading global pharmaceutical compounding company, bringing personalized pharmaceutical care to hospitals, pharmacies, clinics and patients.
In Germany, Fagron’s extensive infrastructure is connected into the country’s approximately 22,000 pharmacies, where it is active in distributing a wide range of pharmaceutical products.
For the year ended December 31, 2016 Fagron reported global revenue of €422 million ($CAN633 million) and EBITDA of €87 million ($CAN130 million).
Notice Regarding Forward Looking Statements
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CanniMed to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
These forward-looking statements include, but are not limited to, statements relating to our expectations with respect to: anticipated product sales revenue by CanniMed and first product sales in Q3 2018. Often, but not always, 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. In respect of the forward-looking statements and information concerning the Agreement and its anticipated benefits. CanniMed has provided such statements and information in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the ability of CanniMed to obtain all required permits and approvals for sales to Germany. There can be no assurance that the revenue to be generated from product sales will not be adversely affected by production or supply delays and changes in market prices. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks including delays in permitting and production. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations of CanniMed are included in documents on file with applicable securities regulatory authorities, including the Annual Information Form of CanniMed dated December 8, 2017, available on sedar.com.
The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. CanniMed does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither the Toronto Stock Exchange or its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.