- Cannabis companies MediPharm Labs (TSX:LABS) and Avicanna (TSX:AVCN) have signed a multi-faceted manufacturing agreement
- Under the three-year agreement, MediPharm Labs will produce Avicanna’s medical cannabis products and topicals for commercial sale
- Avicanna will grant MediPharm Labs a license to proprietary Avicanna formulations, to develop products for domestic and international markets
- MediPharm Labs (LABS) is up 0.65 per cent, and is currently trading at $1.55 per share
- Avicanna (AVCN) is up 1.63 per cent, and is currently trading at $1.87 per share
Cannabis companies MediPharm Labs (TSX:LABS) and Avicanna (TSX:AVCN) have signed a multi-faceted manufacturing agreement.
The agreement, which has an initial three-year term, involves licensed production, domestic and international distribution, and intellectual property licensing.
Under the agreement, MediPharm Labs will manufacture Avicanna products, for commercial sales through Medical Cannabis by Shoppers. These products include Avicanna’s Rho Phyto medical cannabis products and Pura Earth topicals.
MediPharm Labs will manufacture the products using the specialised contract manufacturing capabilities at its Canadian production facility.
In addition to the licensed production, Avicanna will also grant MediPharm Labs certain licenses to proprietary Avicanna formulations.
Using the formulations, MediPharm Labs will develop additional products for the domestic and international markets.
Some of these products will come under MediPharm’s brand, while others will be white label-branded.
Avicanna’s CEO, Aras Azadian, welcomed the agreement, saying the partnership combines years of pre-clinical development and intellectual property
“This alliance will provide the medical community, and more importantly patients, with the most advanced product offerings backed by scientific rigour, data and world-class quality standards which the cannabis industry has yet to see,” he said.
Meanwhile, MediPharm Labs’ CEO, Pat McCutcheon, believes the collaboration will utilise the company’s new certification and its international distribution expertise.
“Since earning our first GMP certification in December to serve the global medical cannabis market, we have made significant strides in developing our business. This partnership with Avicanna, a market leader and proven innovator, is a great example.
“We intend to deploy our capabilities, including our knowledge of consumer and patient categories, to ensure this collaboration lives up to its great potential,” he said.
MediPharm Labs (LABS) is up 0.65 per cent, and is trading at $1.55 per share at 11:29am EDT.
Avicanna is up 1.63 per cent, and is trading at $1.87 per share at 11:14am EDT.
