In what could be a major coup for Cann Group (ASX: CAN), GlaxoSmithKline (GSK) Consumer Healthcare has entered into an evaluation agreement with the Australian medicinal cannabis company to explore the commercialisation of its CBD capsules.
If all goes well, GSK would distribute Cann’s Satipharm CBD capsules in Australia and potentially other markets globally, with the deal contingent on the results of the cannabis company’s ongoing Phase 3 CBD clinical trial.
Cann CEO Perter Crock said GSK’s interest in the Satipharm CBD capsule was a strong validation of the drug and the delivery platform.
“Cann’s ability to produce a CBD capsule that presents as a regular pharmaceutical and has proven benefits in terms of stability and bioavailability has attracted interest from a number of potential distribution partners,” Crock said.
“We are delighted to have this opportunity to work with GSK Consumer Healthcare, which would bring industry leading expertise and market access to our CBD product platform if we enter into a definitive exclusive agreement.”
Headquartered in London, England, GSK is a multinational company that employs more than 94,000 people and generated approximately $59 billion of revenue in FY21, making it the world’s ninth-largest pharmaceutical company by revenue.
To get GSK over the line, Cann will have to impress the company with its Phase 3 clinical trial examining the efficacy of Satipharm for the short-term treatment of sleep disturbances and quality of life outcomes.
The trial is randomised, doubled blind and placebo-controlled, with patients to be treated for four weeks. Results are anticipated to be made available during the second half of this calendar year.
Satipharm capsules are currently being manufactured in Cann’s recently completed facility in Mildura, Victoria, but Cann notes it is exploring larger scale manufacturing options which would be necessary to support GSK’s supply requirements.
As part of the grant of exclusivity to GSK, the English company has paid Cann $172,369 in consideration. This gives GSK 60 days after the delivery of Cann’s final clinical study report to evaluate the results and decide if it wants to pursue a closer marriage with the Australian company.
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