CannTrust accelerates their pharmaceutical strategy
CannTrust Holdings (CNTTF) is accelerating its exclusive partnership with Apotex, the largest Canadian-owned generic pharmaceutical company and a global leader and innovator in the production and distribution of high-quality, affordable medicines. Ahead of schedule, the partnership is developing alternate dosage formats for medical cannabis products.
The companies are increasing their focus on extensive research and development. The result will be innovative new products and competitive additions to the CannTrust portfolio, including both quick release and sustained release formats for THC and CBD. This advancement will provide more choice to meet the growing demand from both healthcare practitioners and their patients for standardised cannabis dosages.
As part of the Apotex partnership, applications will also be made for Drug Identification Number (DIN) registration for proprietary formulations following completion of clinical trials. Once registered as a medication, they may be sold in pharmacies, included in benefit plans, and distributed to countries globally. This DIN registration will facilitate the rapid expansion of CannTrust to a global marketplace, including the 85 countries where Apotex currently distributes products.
In preparation, the Apotex engineering team is collaborating with CannTrust and installing new equipment at CannTrust’s manufacturing facility in Vaughan to produce in-house once the products are approved.
I have always believed Cannabis to be the biggest Healthcare disrupter since the introduction of penicillin. As big as the recreational market is going to be (estimates put it at $50bn by 2035), the real long-term money is going to be made in the pharmaceutical industry. We have already seen Big Pharma teaming up with the Licensed Producers with Sandoz Canada (a division of Novartis) aligning with Tilray to develop medicinal marijuana IP. With GW Pharmaceutical’s FDA approval of their Epidiolex drug, it could well open the door for a larger player (think GSK) to potentially look to enter the industry through acquisition. Speaking of GW, they recently released their Q3 results, and you can read all about that here.
We are very impressed with CannTrust. A strong management team, high-quality genetic IP and superb execution of their business plan and strategy to date, we see this as another strong step forward. We continue to hold.