Australian medical technology company Rhinomed (ASX: RNO) has signed a deal that could see its nasal technology receive accelerated multilateral development and greater adoption in key markets around the world.
Rhinomed has signed a non-binding term sheet with the largest US-based medical cannabis operator, Columbia Care LLC.
The US giant currently holds licenses in twelve of the most populous states and territories and is therefore positioned to offer its pharmaceutical-grade cannabis-based medicines to more than half the US population over the next 2 years.
The US company will license Rhinomed’s nasal platform for the delivery of medical cannabis and cannabinoid compounds, analogues and derivatives which sets up the possibility of Rhinomed’s products seeing strong sales volumes in the foreseeable future.
One of the primary reasons why nasal ingestion systems are taking centre stage within the current growth of medical cannabis is because of their health benefits compared to smoking. The rationale is that if medical cannabis use rises, the best method for ingesting it could via nasal inhalers and similar technology because of its ability to deliver stable dosage and maintain high immediate effectiveness for patients.
Rhinomed’s patented nasal technology platform has broad application across a range of markets with the largest growth likely to be medical cannabis following widespread softening of previously strict legislation regarding its use.
Rhinomed has successfully commercialised two variants in sport and exercise called Turbine and primary snoring and nasal obstruction products (Mute) achieving wide user adoption and retail distribution in over 9,000 retail outlets in the US.
“We have steadfastly built a medical device platform that focuses on the role and importance of the nose and have already built a significant global franchise as a leading consumer health brand in the global sleep market,” said Michael Johnson CEO of Rhinomed.
“In addition, our platform has obvious relevance across a range of other applications with nasal drug delivery being a key opportunity. We are delighted with the opportunity to partner with Columbia Care to bring a revolutionary range of nasally administered dose-controlled cannabis-based formats to the US market.
“By offering consumers and clinicians access to a range of products that solve specific unmet clinical needs we firmly believe that we can modernise, and indeed, medicalise this market in a new and radical way,” said Mr Johnson.
From prospective to binding
The two companies have signed non-binding term sheet which sets out proposed terms for the licensing of the Rhinomed platform technology and enables both companies to jointly develop a range of unique cannabinoid products targeting a wide range of significant and unmet clinical and consumer health needs in the US.
The non-binding term sheet is expected to become a binding deal within the next 90 days, according to Rhinomed.
The deal follows on from Rhinomed’s expansive activities that are focused on the US, the world’s leading healthcare market valued at around US$70 billion by industry market analysts.
The binding agreement will deal with the licensing of Rhinomed’s platform technology, intellectual property, product royalties and supply of technology, exclusivity and other commercial issues. The program will leverage Rhinomed’s nasal platform with development taking place in Columbia Care’s research and manufacturing facilities nationally.
The companies believe that nasally delivered medical cannabis formulations open up a lucrative pathway across a range of patients and offer commercial potential within a broad range of over-the-counter consumer health products.
“Rhinomed is a leader in the development of nasal and respiratory technology and Columbia Care is the leading medical cannabis product innovator and distributor in the United States. Marrying our respective core competencies gives us an immediate leadership position in the largest market in the world,” said Nicholas Vita CEO of Columbia Care.
He added that “Columbia Care is driven to develop and commercialise clinically-relevant pharmaceutical-quality products that deliver a precise and targeted amount of medical cannabis to address specific unmet needs. We look forward to commercialising these differentiated and clinically validated products and positively impacting millions of lives throughout the United States.”