Medical cannabis company Creso Pharma (ASX: CPH) has announced further progress on its path of gradual growth and expansion with this morning’s news that it has strengthened its market presence in Israel and the Middle East via a commercial agreement with SuperMedic.
The deal will see Creso’s cannaQIX range of hemp-based products launched, marketed and distributed in multiple Middle East countries with the additional nutraceutical products also made available for sale.
The first line of products will be based on hemp seed oil to comply with existing Israeli regulations and to remain within the remits of its operating licence.
According to the terms of the deal, Creso and SuperMedic have agreed to commence their commercial relationship by launching a product that raises awareness of the cannQIX brand.
The cannaQIX range of products for the Israeli market are hemp seed oil-based nutraceuticals using Creso’s proprietary delivery technology and containing organic hemp seed oil with vitamins and zinc.
Hemp seed oil is rich in protein, polyunsaturated fatty acids, omega 6 and omega 3, and is known to support immunity, cardiovascular health and healthy skin.
The proprietary QIX-technology-based delivery system contains capsicum, which accelerates the blood circulation in the mouth enhancing the buccal delivery of all the active ingredients into the bloodstream.
According to Creso, the product is safe, well tolerated, non-euphoric, non-addictive and sugar-free.
The deal between Creso and SuperMedic adds yet another notch to its development path which has already seen several milestones achieved so far this year.
The construction of Mernova Medicinal’s cannabis growing facility, the completion of Creso’s acquisition of Kunna S.A.S. in Columbia and Creso’s decision to appoint a Chief Operations Officer for the Americas in June, are all “important milestones” in Creso’s stated strategy to expand its presence in North and South America – two leading markets for the cannabis industry forecasted to be worth around US$48 billion combined, by 2028.
According to Creso, landmark Canadian legislation further supports this strategy and provides substantial opportunity for product growth and uptake.
Middle Eastern cannabis opportunity
Creso says that once the cannabinoid (CBD) regulatory status changes, SuperMedic will switch to cannaQIX with its original formulation and that each product will be sold under Creso’s cannaQIX brand with the option for SuperMedic to co-brand Creso’s products.
“We are really excited to commercialize cannaQIX in Israel with SuperMedic. This is an important milestone for Creso as it provides us with a strategic foothold and frontline exposure to one of the worlds most developed medical cannabis countries and opens the door for Creso for wider commercialization across the Middle East,” said Dr Miri Halperin Wernli, CEO and co-founder of Creso Pharma.
Israel is known for its research and development capabilities in the field of medicinal cannabis. The regulatory reform in Israel, which now allows for pharmacies to sell medicinal cannabis products, creates a strategic opportunity for Creso to access the market with the cannaQIX brand first and later to extend this to the delivery of THC-based products as regulations evolve
“SuperMedic constantly offers the most advanced and innovative product portfolio to our markets. We are very pleased with the agreement with Creso Pharma. We believe with Creso’s innovative products and our established distribution channels cannaQIX® will be a market leading brand in its segment,” said Zion Yedid, CEO of SuperMedic.
The past 3 months have been busy for Creso with multiple commercial efforts occurring simultaneously on a global basis.
The commercial agreement with SuperMedic follows the strategic binding agreement of Creso with Cohen Propagation Nurseries in Israel. Under the agreement, the partners will establish and incorporate a joint venture to operate a medicinal cannabis growing facility in Israel.
There is further progress with Creso’s animal health product ‘anibidiol’.
According to Creso, since its launch in Switzerland by Virbac in November 2017, anibidiol has been “very well received” by vets and pet owners, demonstrating the product’s value and driving expansion in Europe.
Launch plans for Q4 2018 are underway for two new life cycle complementary feed products for Virbac currently in production – ‘anibidiol 8 plus’, with 8 mg CBD and enriched with vitamins and minerals, and ‘anibidiol 2.5 relax’, with 2.5 mg CBD and enriched with vitamins and minerals.
Regarding its cannaQIX 50 product, Creso says that production of cannaQIX 50 has now begun, with a launch in New Zealand for therapeutic use (under prescription) expected by year-end, followed by a launch in Australia in 2019. Creso has lined up a New Zealand-based commercial partner with a commercial term sheet already signed.
In South and Central America, the first regulatory notifications are progressing in Colombia and Mexico, and discussions with potential commercial partners in both markets are underway. Regulatory approval in Colombia is the gateway to access in other South American markets and consultations with possible partners have also commenced in Chile.
In the UK, alongside an agreement with Precision Health to launch Creso’s e-commerce platform, discussions are taking place with potential partners to launch and market cannaQIX 10 through leading retail companies.
Creso is also in advanced discussions for commercialisation with potential partners in Italy, Spain, and the Czech Republic as part of its European expansion plans.