Creso Pharma Limited (ASX:CPH) (OTCMKTS:COPHF) (FRA:1X8) is poised to capitalise on opportunities in the Australian cannabidiol (CBD) market through a heads of agreement with leading natural, sustainable health and lifestyle brand supplier Martin & Pleasance Pty Ltd.
The non-binding agreement provides Creso Pharma with a framework to respond quickly to a favourable Therapeutic Goods Administration (TGA) final decision due in the coming weeks to down schedule CBD products in Australia.
If confirmed, this would allow Australian consumers to purchase CBD products over-the-counter (OTC) through pharmacies without a prescription.
Investors have greeted the news enthusiastically with share as much as 29% higher to A$0.27 this morning.
Large market opportunity
Creso Pharma non-executive chairman Adam Blumenthal said: “The planned down scheduling of CBD products in Australia paves the way for Creso to introduce its unique and sophisticated range of GMP products and capitalise on what is expected to be a large market opportunity.”
“Martin & Pleasance have a leading reputation in Australia, as well as established sales channels which would directly benefit Creso Pharma.
“We are excited to jointly develop this opportunity with them and expect our products to be very well received by consumers.”
Martin & Pleasance chief executive officer Richard Holyman said: “We are very excited to work closely with Creso Pharma, and benefit from their very specific expertise in the hemp/CBD product areas and manufacturing of innovative delivery models.”
Details of the deal
Under the agreement, both parties plan to negotiate and enter into a formal binding and exclusive collaborative agreement on or before April 30, 2021, whereby Creso Pharma will manufacture a range of CBD products in Switzerland, to be sold under new and existing Martin & Pleasance brands in Australia and New Zealand.
Creso Pharma has earmarked four products from its proprietary nutraceutical range in lozenge and tea form, which are all manufactured in a Good Manufacturing Practice (GMP) certified compliant facility.
The heads of agreement can be terminated upon either party giving written notice at any time prior to the execution of a collaborative agreement.
Entry into the proposed collaborative agreement remains subject to the outcome of the TGA’s final decision.
Focus on new and emerging products
Established more than 150 years ago, Martin & Pleasance provides an extensive range of natural remedies and medicines, focussing on pioneering new and emerging products.
The Australian-owned and operated company’s leading brands include Harmony women’s health range, Ki-Immune range, Vital Nutritional Products, Schuessler Tissue Salts, Zen Joint & Pain relief, He Men’s health, a comprehensive range of brands targeting consumers through various lifestyle stages and health conditions.
It has an extensive field force directly servicing more than 4,000 pharmacies across Australia and New Zealand, in addition to its online channels, grocery and practitioner suppliers.
Martin & Pleasance also has direct interests in Canada and the UK, servicing key customers in the natural and mass channels.
This content was originally published here.