Technology company Rhinomed (ASX: RNO) has made an assertive move into the drug delivery market by signing a long-term licensing agreement with the largest provider of cannabis-based products in the US – Columbia Care.
Small Caps reported on the deal when it was first announced in mid-September, with the company’s first declaring their partnership as early as June.
Earlier today, the respiratory technology developer officially confirmed that it had secured a 12-year exclusive licensing agreement for its nasal platform technology, with company CEO Michael Johnson declaring that the deal paves the way for the company to develop a “game-changing portfolio of medical cannabis products” in tandem with the US giant.
Rhinomed also said that its nasal delivery technology sets a new standard by providing a “better and more reliable and repeatable dosing experience.”
According to the terms of the exclusive agreement, the newly-founded relationship will mean Rhinomed’s nasal platform is used by Columbia Care to manufacture a range of products that deliver medical cannabis and other cannabinoid compounds for patients.
At present, Columbia Care is the largest and most experienced provider of cannabis-based products and services, reaching more than half of the US population and has delivered over 750,000 successful interactions since inception.
Columbia Care is entirely “vertically integrated” in nearly all markets in which it operates which typically means strict quality standards are upheld throughout the production chain, from cultivation to production to sale.
“We look forward to working with Rhinomed to expand our portfolio of high-quality and consistent medical cannabis products to include an additional delivery format. Columbia Care is committed to being at the forefront of product innovation and patient satisfaction in the medical cannabis industry, and our partnership with Rhinomed to develop these cutting-edge cannabis-based medicines is directly in line with that vision,” said Nicholas Vita, CEO of Columbia Care.
Michael Johnson CEO of Rhinomed said, “We believe that there is clear medical research support for, and a very real and significant commercial opportunity for nasal stents with medical cannabis formulations. Nasal delivery of cannabinoids opens up a new and exciting market opportunity and has the potential to set a new standard by providing a better and more reliable and repeatable dosing experience.
“This exciting new range of products will sit alongside and complement our existing portfolio – it is an important step in ensuring that Rhinomed technologies deliver on our mission of radically improving the way people breathe, sleep, take medication and maintain their health and wellness,” added Mr Johnson.
Rhinomed says that the agreed revenue model will see it receive cost “plus a double-digit royalty fee on a per product basis”.
Under the terms of the agreement, Rhinomed will optimise its platform for delivery of cannabinoid formulations and supply the customised product to Columbia Care. In parallel, Columbia Care has agreed to manufacture and place specific pharmaceutical formulations onto the platform in its US-based facilities.
In addition, Rhinomed will also receive a further “double-digit share of net profits” that varies based on the retail channel – with a greater share for product sold through its own channels.
Today’s deal has been described as a strategic way of opening a new industry vertical for Rhinomed, with drug delivery now considered a key focus area, following the strong market response and high early-adoption rates for its proprietary Mute nasal stent product.
The product is clinically proven to provide more air during sleep and is confirmed to deliver “reduced volume and severity in 75% of snorers,” according to Rhinomed.
The company says it has successfully commercialised two product variants from the same core technology platform.
For sport and exercise applications, Rhinomed has developed Turbine while Mute has been developed as a primary snoring and nasal obstruction device. Mute has already achieved wide user adoption and retail distribution in over 9,000 retail outlets in the US alone.