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- Althea Group’s (AGH) German sales and distribution partner Nimbus Health is set to be acquired by global pharmaceutical company Dr Reddy’s Laboratories
- The NYSE-listed company says it will build on Nimbus Health’s strengths and introduce medicinal cannabis products as a treatment option for more patients in Europe
- Althea and Nimbus’ existing partnership deal will remain unchanged and is pleased to receive another investment from a globally recognised pharmaceutical company
- Company shares are trading steady at 21 cents
Althea Group (AGH) has announced pharmaceutical company Dr Reddy’s Laboratories is set to acquire its German sales and distribution partner Nimbus Health.
Headquartered in India, Dr Reddy’s is a global pharmaceutical company listed on the New York Stock Exchange. Its portfolio of products and services focus on areas such as gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology.
Dr Reddy’s said the acquisition would allow it to build on Nimbus Health’s strengths and
introduce cannabis-based medicines as an alternative treatment option for more patients.
“Medical cannabis is increasingly used to address and treat high unmet medical needs, especially in pain management and CNS,” Dr Reddy’s Head of European Generics Patrick Aghanian said.
“We are very excited that with Nimbus joining Dr. Reddy’s family, together with Linus and Alessandro, we embark on a new, exciting journey of medical cannabis, which supports Dr Reddy’s mission of meeting unmet patient needs.”
Nimbus Health Founder and Managing Director Linus Maximilian Weber said Nimbus is confident the acquisition will add “significant scale and efficiencies” and increase its impact in the European medicinal cannabis market.
Althea’s and Nimbus’ existing partnership agreement will remain intact, under which Althea receives payment for products supplied to Nimbus, along with 50 per cent of the net profit on sales.
“This acquisition marks another investment from a globally recognised pharmaceutical company into our industry, and it is fantastic that Althea is a part of that story. I envision further investments to come from ‘big pharma’, as Althea’s cannabis-based medicines, amongst other brands, continue to be prescribed to many tens of thousands of patients across the world,” Althea CEO Joshua Fegan said.
The acquisition consideration hasn’t been disclosed. The only details that were announced were it would comprise an upfront payment plus performance and milestone-based earn-outs over the next four years.
Company shares were trading steady at 21 cents at 3:09 pm AEDT.
