Impression Healthcare's Incannex Pharmaceuticals has entered into a supply agreement to research and formulate four new cannabinoid drugs.
Impression Health (ASX:IHL) has officially launched their cannabinoid drug discovery brand Incannex Pharmaceuticals, which will be targeting four areas of research; Gingivitis, Obstructive Sleep Apnoea, Traumatic Brain Injury and Temporomandibular Joint Dysfunction.
The company is working with an EU-based cannibinoid drug design company named Linnea SA, to become their supply partner for the base cannabinoid materials in these four novel cannabinoid formulations.
The four trials will be overseen by the CEO, Chief Medical Officer and Chairman of Cannvalate, Dr Agarwal, who is an internationally acclaimed leader in the cannabinoid-based medicine space. Dr Agarwal was appointed CEO and chairman on the 25th of July, 2019.
"Impression Health and Incannex have realised that the two largest determinants of future growth for cannabis companies are patient acquisition and creation of patent-secured, novel cannabinoid products which have been scientifically validated by clinical trials. Incannex are on target to race ahead on both fronts by the end of 2019."
Dr. Sud Agarwal, CEO, Chief Medical Officer and Chairman of Cannvalate
Outside of the agreement, Australia has seen a sharp rise in sales of medicinal cannabis, with sales conducted through the Therapeutic Goods Association (TGA) Special Access Scheme increasing by 229%, rising from 670 approvals in January to 2206 approvals in July.
Impression Healthcare CEO and Managing Director, Joel Latham "We've just seen a record-breaking month for TGA approvals of cannabinoid medicines in Australia and expect to see further growth in patient numbers resulting from increased public awareness; particularly positive media coverage on patient outcomes."
Mr. Latham continued to say that "[IHL is] delighted to have forged this agreement with which we consider to be one of the highest-quality producers of GMP-approved medicinal cannabis products in the world. Further to this, the Supplier will assist us with formulating and manufacturing IP-defendable products for 2 of our clinical trials. Creating products with defendable IP provides us with a significant opportunity to develop long-lasting products targeted at specific indications."
Alongside this, Incannex has released a series of pharmaceutical-grade cannabinoid products to be sold through Cannvalate, Australia's largest cannabinoid distribution network. Each year, Incannex will purchase up to 2000 50ml bottles over the 5-year contract, with products designed to match the highest demand Cannvalate products.
Cannvalate itself is experiencing a spike in interest, with over one hundred new patient enquiries daily and a commercial strategy to reach 1000 patients by the end of this year.
The new distribution agreement between Incannex and Cannvalate expands upon a prior agreement between Impression Health Care and Cannvalate made on March 21st, which included the purchase and distribution of cannabis medicines through Canvallate's prominent network of medical professionals.
The agreement also grants Cannvalate a series of options which are subject to shareholder approval at the Extraordinary General Meeting (EGM) and will be priced up to $0.14 per share.
IHL's expanded agreement with Cannvalate dovetails with their other existing agreements, one of which is with leading US cannabinoid therapeutics Company, AXIM Biotechnologies Incorporated as well as a license agreement with Resolution Chemicals for the production and distribution of Dronabinol in the USA, Canada, Australia, and New Zealand.
The new supply agreement further sets Impression up to position itself at the forefront of the ever-growing medicinal cannabis market.