European firm MGC Pharmaceuticals has signed a $24 million deal for the supply of its cannabis-based products to the US.
The EU based bio-pharma company, MGC Pharmaceuticals, which specialises in the production and development of phytocannabinoid-derived medicines, has signed a binding US Market Supply and Distribution Agreement (US Supply Agreement) with US company, AMC Holdings Inc (AMC).
The deal will see minimum orders of US$24 million for MGC products including CannEpil, CogniCann and CimetrA over the initial three year period.
This is the first dedicated supply agreement executed by MGC Pharma for the supply of MGC Pharma pharmaceutical products into the USA, the largest healthcare market in the world.
The agreement is also an important step in expediting the clinical trials process for both CannEpil and CogniCann, as well as providing access to these medicines to more patients.
CannEpil is a phytocannabinoid derived IMP, designed to treat drug resistant Epilepsy with a high CBD, low THC formula.
The Phase IIb clinical trial for CannEpil has regulatory approval at the Schneider Children’s Medical Hospital in Israel and will focus on the safety and efficacy of CannEpil as an add-on treatment for children and adolescents with treatment resistant epilepsy.
CogniCann is a formulation of phytocannabinoids that has been developed with the specific aim of treating the symptoms of Dementia and Alzheimer’s. It currently undergoing a Phase II clinical trial at the University of Notre Dame in Perth, Western Australia.
An important milestone
Roby Zomer, co-founder and managing director of MGC Pharma, commented: “This is an important milestone agreement for MGC Pharma, as it provides MGC access to the largest healthcare market in the world. We look forward to working with our new partners at AMC and utilising their expertise and network to widen patient access to MGC’s phytomedicine products.
This agreement provides MGC Pharma with a pipeline for strong revenue streams over the next three years, with the possibility of larger revenues to follow, and the opportunity to be at the forefront of phytomedicines in the USA. Additionally, the ability to add new sites to our current clinical trials programmes for CannEpil and CogniCann will greatly enhance the ongoing process for both.
“I personally would like to thank all at MGC Pharma and AMC who have made this possible and look forward to sharing our progress with investors in due course.”
Brent Yessin, AMC’s general counsel and president of AMC Florida, agreed: “We believe that disease management of intractable conditions, like refractory epilepsy and dementia, as well as the recent spike in Covid-19 around the US, is driving healthcare providers and researchers to seek alternatives to existing drugs or protocols.
“MGC’s track record developing botanical or bio-pharmaceutical solutions as alternatives to existing medications, many of which have negative side effects affecting patients’ quality of life, made this an exciting collaboration for AMC. We look forward to introducing MGC’s products to our national medical community.”
Cannabis beverage market to reach £6.43bn by 2027
Fortune Business Insights says the market will grow at a CAGR of 50.9 per cent from 2020 to 2027.
A new report has projected the cannabis beverage market to reach £6.43bn (USD$8521.6m) by 2027.
The report from Fortune Business Insights, which offers expert corporate analysis and data, has said the market is set to see increasing growth due to the surging popularity of the products.
It noted that the online retail segment is set to dominate and that specialty stores would see greater sales if they display novel products online.
With consumer demand increasingly shifting toward chemical-free and natural trends and moving away from unhealthy consumption habits such as smoking, the report suggests consumers will increasingly move toward novel cannabis products like beverages.
In particular, consumers in Europe and North America are rapidly inclining towards these trends, such as recognisable and herbal formulations, chemical-free, and all-natural cannabis beverages.
However, it highlights that governments of various countries are implementing stringent regulations on the distribution and manufacturing of such THC products – a factor that is likely to hamper the market’s growth in the near future.
Regionally, the sector is set to favour growth in North America, as, since the passing of the 2018 US Farm Bill, the demand for hemp-CBD has surged rapidly, according to the report. It also highlights that Latin America, Oceania, and Asia will exhibit slow growth because of the ban of cannabis beverages in these regions.
Recent developments have seen leading lifestyle brand, Tonino Lamborghini, move into the market through a licensing agreement with The Flora Growth Corp which will see the distribution of CBD beverages in North America and Columbia. Additionally, Canopy Growth Corp is planning to introduce a new range of cannabis beverages into the US to strengthen its position in the sector.
To read the report in full, please visit: https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/cannabis-beverages-market-100738
Synbiotic acquires 50.1% of cannabis group in significant merger for Europe
Synbiotic SE has acquired 50.1 per cent of Daniel Kruse’s cannabis group in what it has described as the most significant merger for the European cannabis sector.
Synbiotic SE, the largest listed cannabis company in Europe, has made the acquisition of cannabis industry pioneer Daniel Kruse’s group of companies at a valuation of €11.2m (~£9.53m).
The 50.1 per cent acquisition of Kruse’s companies will see Synbiotic SE securing the subsequent acquisition of the remaining 49.9 per cent by option. With the acquisition of the companies, Hanf Farm, Hempro International, Hemp Factory and MH medical hemp, Synbiotic is raising its sales forecast for 2021 to €15m (~£12.76m).
Synbiotic has said that the addition of the companies will enrich its portfolio with vital infrastructures and profitable brands.
CEO of SynBiotic, Lars Müller, commented: “The co-operation with Daniel Kruse is a genuine accolade in the cannabis sector. SynBiotic SE will benefit massively from what amounts to over half a century of combined know-how gathered by industry pioneers Daniel Kruse and Rafael Dulon.
“So far, the only comparable acquisitions have taken place in Canada. This makes this merger the most significant in the European cannabis sector. I am greatly honoured by the trust Daniel Kruse and Rafael Dulon have displayed in SynBiotic SE; this shows that we are on the right track with our vision.”
Kruse, president of the European Industrial Hemp Association (EIHA) and industry pioneer with more than 25 years of experience in the sector, commented: “After 25 years in the hemp industry, it is a great pleasure and honour for me to have found the right partner for the coming decades with SynBiotic SE. Our decades of experience alongside the supply chain of our group of companies find an excellent complement in the enormous dynamics of SynBiotic SE.
“The appealing nature and charisma of Lars Müller and his team contribute, but it is above all their displaying the highest professionalism and efficiency that has won us over. This combination makes SynBiotic SE the next Unicorn candidate and an ideal partner for me. The European hemp and cannabis market is set to become one of the most exciting and successful industries in the coming years. The challenges yet to be mastered are well known, but the resulting opportunities are unlimited.”
Rafael Dulon, managing director of Hanf Farm, the largest organic hemp farm in Europe, and expert member of the International Institute for Cannabinoids (ICANNA), has also worked in the hemp industry for 25 years. He was awarded the Global Hemp Innovation Award at the World Hemp Congress in 2015 for the development of a hemp harvester.
Dulon stated: “The synergies created for Hanf Farm through its inclusion in the SynBiotic SE Group will lead to significantly faster growth. Within SynBiotic SE’s strong network of people and companies, we will be much better able to implement our ambitious goals in expanding our capacities and competencies as an original agricultural producer and primary processor of hemp.
“I am very pleased that Lars Müller fully supports my ideas for the development of sustainable, organic agriculture. Together, we will use the great potential of hemp in agriculture and market our healthy, climate-friendly products even more vigorously, and as well develop many new products. I look forward to using my many years of experience to help support Lars Müller’s vision.”
Synbiotic is listed on the Frankfurt and Düsseldorf stock exchanges and announced plans to begin listing on the Canadian NEO Exchange in Toronto in October.
First-ever UK EIS and SEIS fund launched for cannabis
An SEIS and EIS fund has been launched in the UK that will target the medical cannabis sector.
For the first time, an Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) fund has been launched in the UK.
Óskare said that the fund will invest in both early-stage UK companies and global companies that have the requisite operations within the UK to provide investors with access to a diversified portfolio of companies in the sector.
The Fund already has a pipeline of deals and will invest in startups across the value chain.
Óskare Capital UK director, Oliver Lamb, commented: “We were motivated to set up the MEDCAN fund with Sapphire Capital Partners LLP given that around 40 per cent of our European dealflow is coming from the UK, and the tax breaks investors can gain through the SEIS and EIS schemes are significant.”
EIS and SEIS are UK government initiative schemes that encourage growth and development by granting private UK investors significant tax breaks when investing in qualifying early-stage companies.
The MEDCAN Fund team will specifically target leading companies in the UK which it considers to have strong IP and which are developing novel therapeutics that target the endocannabinoid system. It will also invest in companies that form part of the wider medical cannabis ecosystem of services and products.
Óskare highlighted the case of UK cannabis company, GW Pharmaceuticals, the producer of the FDA-approved cannabis-based epilepsy medication Epidiolex, which was acquired by Jazz Pharmaceuticals for (USD)$7.2bn.
Óskare Capital UK director, Nicola Broughton, said: “Whilst GW is clearly an excellent example of a UK success story in the sector, we believe that there are opportunities in the market with stronger intellectual property which address far wider ranges of medical conditions that would result in even greater exits.”