Creso Pharma (ASX: CPH) has expanded a distribution agreement with Route 2 Pharm Pvt Ltd that will see Creso’s hemp-based products sold in Ecuador as a starting point into the lucrative Latin American cannabis market.
The deal follows an initial agreement secured in February for Route 2 to import, market, distribute and sell Creso’s cannaQIX and CannaDOL products into Pakistan and the Philippines, as well as other potential target markets including Cambodia, Afghanistan, Azerbaijan, Bangladesh, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan and Vietnam.
With both agreements combined, Route 2 can now sell Creso’s hemp-derived products throughout 14 countries.
Creso’s product portfolio covers four key areas – therapeutics, nutraceuticals, animal health and cosmetics.
Of Creso’s 13 products, eight have been commercialised and are generating “consistent revenues”.
The remain products are due for commercialisation “shortly”.
Ecuador presents large opportunity
According to Creso, Ecuador presents a large market opportunity with its recently passed legislation allowing the production, commercialisation, use and consumption of cannabis for medicinal or therapeutic treatment.
The country is home to more than 15 million people and is part of Latin America’s “rapidly emerging” medicinal cannabis space, which is estimated to be worth more than US$300 million by 2024.
“The evolving regulations in Ecuador and the broader Latin American and Caribbean region present a tremendous opportunity for both our human and animal products and the extension of our distribution agreement with an established company such as Route 2 provides the opportunity for millions of people to gain access to our innovative products,” Creso non-executive chairman Adam Blumenthal said.
“Our mission is to deliver access to affordable, high quality, broad spectrum, GMP products for the betterment of people’s lives everywhere.”
“We are witnessing strong uptake across our entire product suite and this agreement provides further evidence of the considerable potential that the company has in established and emerging markets alike,” Mr Blumenthal added.
Combined, Latin America and the Caribbean region has an estimated population of 655 million people.