- Cann Group (CAN) enters an evaluation and option agreement with GSK Consumer Healthcare regarding the potential distribution of its Satipharm CBD capsules in Australia
- During the exclusivity period, GSK will evaluate the commercial potential and review the results of Cann’s Phase 3 CBD clinical trial that is currently underway
- Meanwhile, both companies will enter negotiations regarding a definitive exclusive agreement for the marketing, sale and distribution of Satipharm in Australia
- The capsules are being manufactured in Cann’s facility near Mildura and while small-scale production is underway, the evaluation process will scope out large-scale manufacturing requirements
- Shares in Cann Group are up 3.57 per cent and are trading at 29 cents
Cann Group (CAN) has entered an evaluation and option agreement with GSK Consumer Healthcare regarding the potential distribution of its Satipharm CBD capsules in Australia.
During the exclusivity period, GSK will evaluate the commercial potential and review the results of Cann’s Phase 3 CBD clinical trial that is currently underway.
The Phase 3 trial is examining the efficacy of the CBD-Satipharm capsule for the short-term treatment of sleep disturbances and quality of life outcomes.
Meanwhile, both companies will enter negotiations regarding a definitive exclusive agreement for the marketing, sale and distribution of Satipharm in Australia.
GSK also has an interest in taking up commercialisation rights for markets outside of Australia.
As consideration for exclusivity, GSK will pay Cann £100,000 (A$143,851) as a non-refundable payment.
Cann will also grant GSK exclusive rights such as the first negotiation to obtain an exclusive licence under Cann’s IP to commercialise the product for use as a consumer healthcare product in patients in Australia.
The Satipharm capsules are being manufactured in Cann’s state-of-the-art facility near Mildura in Victoria and while small-scale production is underway, the evaluation process will scope out large-scale manufacturing requirements.
“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,” CEO Peter 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.”
Shares in Cann Group were up 3.57 per cent and were trading at 29 cents at 12:51 pm AEST.