Bod Australia (ASX: BDA) has agreed to supply its medicinal cannabis extracts to speciality pharmaceutical company iX Biopharma (SGX: 42C) for use in clinical trials.
Bod’s cannabis oils and raw materials will be used in iX Biopharma’s WaferiX product which is a small wafer that dissolves under a person’s tongue and releases any active compounds for rapid absorption.
iX Biopharma’s patented WaferiX does not have an aftertaste or residue. Bod’s medicinal cannabis extracts will be manufactured in the WaferiX and undergo phase 1 clinical trials.
“We are pleased to have finalised this agreement with a pharmaceutical company that has a track record of delivering unique, patented products based on drug delivery,” Bod chief executive officer Jo Patterson said.
“The phase 1 clinical trials are incredibly important for the company as they will lead to the development of specific therapeutic indications for Bod’s medicinal cannabis product suite,” Ms Patterson added.
She said the company was also looking at ways to fast-track its clinical trials to reduce time to market and save on costs.
In early November, Bod teamed up with Linnea SA to develop cannabis-based formulas for a new cosmetics range, which Bod plans to launch sometime this year.
Linnea is assisting Bod with creating cannabis-based topical treatments for inflamed and sensitive skin. The products will include serums, foam-based creams and balms and incorporate Linnea’s NioSkin ingredient which enhances penetration into the skin.
The duo plans to manufacture the products at Bod’s Italian facilities and will export them to Australia, Asia and American markets.
Bod is also attempting to tap into China’s skincare market which was worth A$33 billion in 2016 and according to Morgan Stanley, will become the world’s largest cosmetic market.
The global cosmetics market is predicted to be valued at A$233.7 billion by 2022.
Meanwhile, revenue from medicinal cannabis products is tipped to hit A$72.8 billion by 2025.
By mid-day, shares in Bod had soared more than 20% to A$0.53.