With the medicinal cannabis movement expanding globally, Australian pharmaceutical group Zelda Therapeutics (ASX: ZLD) are riding the wave not just at home but abroad too.
On Tuesday, the company announced a partnership with German medicinal cannabis company HAPA Medical that provides HAPA with first rights to distribute and manufacture Zelda's products into the German market.
This significant deal will allow Zelda to push into the rapidly expanding German market upon the successful completion of clinical trials.
HAPA is an early mover in the German medicinal cannabis market and is developing a vertically integrated business including cultivation, pharmaceutical-grade manufacturing, medical outreach, patient education and distribution to pharmacies and medical clinics across Germany.
German laws recently changed in March 2017, allowing doctors to prescribe cannabis to "seriously ill patients" even if other treatment options are available. Recreational cannabis is still prohibited in Germany, but with a population of 83 million people Zelda's managing director Dr Richard Hopkins is confident about the potential for Germany to become a major medicinal cannabis market.
"This partnership re-enforces the global breadth of Zelda's relationships and shows our focus on commercialising our clinically validated formulations," says Hopkins.
"This is also important because Germany is expected to become the world's single largest market for medicinal cannabis."
The deal with HAPA follows the recent announcement form Zelda about its clinical trials in the USA. The Australian company received approval in April for a major sturdy into the pharmacology of cannabinoids in the treatment of paediatric autism patients.
Also in the US, Zelda was approved for trading on the ATCQB Venture Market under the symbol ZLDAF.
The OTCQB is a US-based trading platform for early-stage and developing USA and international companies.
Through this new market, the group aims to grow its access to the US investment community.
Business News Australia
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