Founded in 2015, Creso Pharma (ASX:CPH) is a global medicinal cannabis company that has developed, registered, and commercialized several cannabis-based pharmaceutical and nutraceutical products for both people and their pets.
Creso Pharma (ASX:CPH) is a global supplier of cannabis and hemp-derived products for both people and animals that has established a presence in almost every continent on the planet.
Since its origin, Creso has hit many milestones through a combination of innovation and acquisitions, which have allowed the company to further its global expansion and progress its four key focus areas; animal health, nutraceuticals, cosmetics, and therapeutics.
And when it comes to being a global enterprise, Creso has certainly covered a lot of ground, with a growing presence in Canada, Switzerland, the EU, Israel, Latin America, Australia, New Zealand and most recently in Africa.
Now, Creso has a market cap of over USD $217M, and operations across Latin America, Oceania, South Africa, and Europe.
Let's find out how Creso Pharma got to where they are today.
Creso Pharma's Global Operations
Operating primarily out of Switzerland, Creso has wholly-owned cultivation operations in Latin America and Canada, as well as distribution networks in Australia, New Zealand, Israel, Africa and Pakistan.
In July and December 2017 respectively, Creso acquired Nova Scotia-based Mernova Medical, and Colombia-based Kunna Canada.
Operating a world-class, fully-licensed LP from Nova Scotia, Canada, Mernova gives Creso access to a 24,000 sq. ft. indoor growing facility in Windsor, Nova Scotia, which is designed to produce four tonnes per year of dry cannabis.
The facility is currently in phase 1 of Mernova's 3-phase plan, boasting 10 grow rooms with a total production of 3500kg/year. Mernova is in the advanced stages of securing EU-GMP certification for this facility.
In 2020, Mernova hit several key milestones, including receiving a series of purchase orders of its premium cured, hand-trimmed dried cannabis flower worth over A$1m from Israel partner UNIVO Pharmaceuticals.
Mernova also commenced retail sales in 2020 across several territories throughout Canada, such as Nova Scotia, Ontario, New Brunswick and Yukon, with the company having been formally recognized as a supplier in Ontario.
Mernova also recently announced plans to expand its product range in 2021, and as such, the company will be launching a hashish range of products in Canada.
When Creso acquired Kunna, the company also acquired 100 percent of Kunna's Colombian registered subsidiary, Kunna S.A.S, which was given license to cultivate, produce, manufacture, market and export cannabis products throughout Colombia, Argentina, Chile, Mexico and Uruguay.
Creso Pharma stock climbed 2.94 percent higher at $0.35 following the deal in December 2017. When it comes to cannabis, Colombia is one of Latin America's most prominent marijuana markets.
Bruce Linton and Others Join Creso Pharma & Mernova
In October 2020, Bruce Linton, the founder and former chief executive of Canopy Growth Corporation, joined Creso Pharma as a strategic advisor, which will see him utilizing his expertise and insights to help guide Creso Pharma's direction in the future.
At the time, Creso's Director, Co-founder, and Head of Technology & Innovation Dr. Miri Halperin Wernli said that:
"Bruce brings a wealth of invaluable knowledge and a deep network of cannabis industry contacts to Creso Pharma and we anticipate that his appointment will greatly assist us in achieving our near-term operation milestones and longer-term goals."
"We continue to target international distribution agreements in a number of new markets and progress product development initiatives that will unlock considerable shareholder value," Wernli concluded.
Additionally, Creso's wholly-owned subsidiary Mernova has several former Canopy Growth members in its arsenal, including Jack Yu, a former Canopy Growth Executive and Production Manager, who serves as Managing Director at Mernova and will be helping Mernova work toward securing a European Union GMP certification.
Then there's Isaac Allen, who served as the national operations process improvement Manager at Canopy Growth. Allen has since been appointed as Vice President of Mernova.
At the time of his appointment as Vice President, Allen said:
"Mernova is emerging to be a promising supplier of premium quality flower and oil to customers across the globe, and a compelling opportunity for investors looking to gain exposure to a first-class cannabis production facility."
"I am confident that I will be able to help Mernova further optimise its business operations as it moves closer to obtaining its EU GMP certification."
These additions to Creso and Mernova will add immense expertise and value to the operations of CPH and ensure the company has good leadership moving forward.
Creso Pharma's Product Portfolio
In November 2017, Creso Pharma progressed one of its four key focus areas, Animal Health, when the company released its animal-focused range of CBD products named anibidiol®. Derived from industrial hemp, anibidiol®'s active ingredient is cannabidiol (CBD), which doesn't get users intoxicated.
According to Creso Pharma's website, anibidiol® "promotes well-being by supporting the immune system and natural response. anibidiol® Supports behaviour balance, the normal psychological function, and the nervous system, [in addition to] contributing to the reduction of tiredness and fatigue."
Creso has secured regulatory approval from the Ministry of Agriculture and Animal Feed in Uruguay through its commercial partner Adler Laboratories, Uruguay for its anibidiol® line of animal health products.
The company expects to deliver its first purchase order for anibidiol® 8 to occur in this first quarter of 2021, which would make Creso the first company to supply approved CBD hemp-based complementary feed for pets in Latin America.
Additionally, CPH supplies anibidiol® throughout Europe, including a recent shipment of anibidiol® Plus to Virbac S.A. International's headquarters in France, worth $215,000.
In total, the company generated nearly $1 million in sales of its animal-focused CBD range in 2020. For perspective, Grandview Research states that the global CBD pet market size was valued at USD 27.7 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 40.3% from 2020 to 2027.
"We are pleased to be able to ensure ongoing supply to a growing base of veterinary doctors and pet owners who are using our anibidiol® line of products throughout Europe," Creso Director, Co-founder, and Head of Technology & Innovation Dr. Miri Halperin Wernli said to Stockhead.
Then, in December that same year, Creso Pharma teamed up with the Swiss Pharma OTC company Doetsch Grether to launch cannaQIX in Switzerland in Q1, 2018.
CannaQIX is Creso's proprietary formulated cannabidiol lozenge designed to help minimize chronic pain. Each cannaQIX lozenge contains full-spectrum CBD (CBD with other cannabinoids present) derived from hemp plant extracts, produced out of Switzerland.
In 2020, Creso launched its range of CBD-based cosmetic's under its cannaDOL® range, which has been produced in a certified GMP compliant facility and with "Swiss Made" label, designed to address the analgesic need in sports-related muscle injuries, arthritis and osteoarthritis.
cannaDOL® launched in Germany in March 2020 and is available over-the-counter in select European countries.
Creso also has several products in the pipeline such as cannaQIX® NITE, a GMP-compliant buccal formulation comprised of broad-spectrum hemp oil extract, vitamins, minerals, and lemon balm designed to target sleep improvement, stress reduction, and support of cognitive and psychological functions in humans.
Throughout 2021 Creso Pharma plans to launch oral health CBD based products, anabidiol® EQUI which is designed for larger animals, and a hemp-based tea range.
Disclaimer: Past performance is not an indicator of future performance.
The Future of Creso Pharma (ASX:CPH)
Creso Pharma has been tracking nicely in 2021 and has many products ready for launch this year, including a range of CBD-infused cosmetics, hemp-based food supplements and hemp-based teas under CannaQIX branding and the company's soon-to-be-launched CannApeal brand.
Overall, CPH targets several multi-billion-dollar markets, and if the company continues to carve a position for itself in these industries, success will surely follow.
The nutraceutical market is pegged to grow at 7.5% CAGR, according to a new study by PMMI Business Intelligence, from a $241 billion market in 2019 to $373 billion in 2025.
The pet health market, according to a new report from market research firm Packaged Facts, is expected to reach $6.7 billion dollars by the end of 2019. According to the report, "Product innovation featuring cannabidiol (CBD), an active ingredient in cannabis-derived from hemp, in products for humans and pets alike has arguably been the most discussed trend of 2019."
The CBD Cosmetics Market is expected to grow at 31.3% CAGR during 2019-2025 according to an analysis by Distribution Channel, and in 2015, the U.S. skincare market generated USD 12.83 billion.
With a global network, a pharmaceutically-experienced team and an expansive product pipeline that touches upon many fast-growing industries, there are many good things going for Creso Pharma.
To learn more about Creso Pharma, visit their company HQ here.
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