Following the news that Botanix Pharma (ASX: BOT) will be receiving $50,000 from the Australian government to research synthetic CBD, the company has now secured a cannabidiol supply deal with Purisys.
Following the recent grant given to Botanix by the federal government to study CBD, the company will now have immediate and constant access to cannabidiol and its active pharmaceutical ingredient (API.)
The agreement, with a term ending in December 2027, gives Botanix preferential pricing for the synthetic cannabinoid API as well as the ability to collaborate with Purisys to set future volume requirements.
The strategic agreement ensures that Botanix is able to meet its planned volumes of synthetic CBD to serve the company's clinical and commercial needs, such as its pipeline products to target skin disease. In return, Botanix will continue purchasing a portion of its commercial supply requirements from Purisys.
Operating since 2016, Purisys is a provider of cannabinoids to companies exploring cannabidiol (CBD) and other cannabinoid-based ingredients and boasts one of the industry's longest track records. Purisys currently produces all major cannabinoids used for commercial and pharmaceutical purposes – of which there are over 50. In order to navigate the rules around the Farm Bill, which sets a THC limit at 0.3% for any product which seeks to be federally legal, Purisys has created ultra-high purity cannabidiol (CBD) which has THC levels below 0.001%.
We are very pleased to partner with Purisys, to secure our near term and future supply needs for synthetic cannabinoids in the market-place. Vince Ippolito, President and Executive Chairman of Botanix Pharma
Vince Ippolito, the President and Executive Chairman of Botanix Pharma stated on the agreement that "[Botanix's] desire to lock in access and participate in efficiencies as we scale source of high-quality API at a time when our clinical programs are accelerating and the demand for ultra-high purity cannabidiol is exploding was an important driver to completing this agreement with Purisys at this time."
The agreement comes at a perfect time for Botanix, who currently has two Phase 2 trials occurring, one of which is for its acne drug BTX 1503 which has just completed enrolment, and another studying atopic dermatitis. Ensuring a constant flow of supply is a massive step forward for the company in realizing its product pipeline.
The CEO of Purisys, Jim Mish, spoke of the agreement: "Purisys is proud to partner with Botanix to supply pharmaceutical-grade cannabidiol for its clinical and commercial needs because we recognize that Botanix is leading the world in the development of pharmaceutically focused skincare products."
"As the market matures, I am confident that the quality, purity and scale that Purisys offers will be essential in the development of safe and effective products and the Botanix pipeline presents a significant commercial opportunity for both companies."
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Disclaimer: past performance is not an indicator of future performance
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