Creso Pharma, which specialises in developing cannabinoid(CBD) products for humans and animals, is one of a number of companies that have sprung up in recent years in Australia – as firms look to capitalise on the legalisation of medicinal cannabis in the country.
The legalisation follows a 2016 ruling meaning it became legal to cultivate, produce and manufacture medicinal cannabis products in Australia.
Now, Creso Pharma has signed a binding Letter of Intent (LOI) with Domaco – a Swiss food and pharmaceutical company which makes products for Danone and Bayer – to develop and sell a handful of new products targeting Australia, Europe and Latin America.
The deal involves two human health CBD-infused nutraceutical products: one to help manage anxiety and stress and other aimes at osteoporosis and osteoarthritis. The companies will also develop one animal health nutraceutical product for animals.
Creso chief executive and co-founder doctor Miri Halperin Wernli told Nutra Ingredients: “Creso continues to make significant progress in broadening the pipeline with innovative nutraceutical products derived from CBD full-plant hemp extracts for both human and animal health.
“This LOI with a Swiss leader in the development and manufacturing of food and pharma products is another key milestone to establishing our leadership position in the field of hemp and cannabis derived therapeutics.”
The deal will see Domaco manufacture and package the products while Creso, which will have full ownership and retain the IP rights, will pay a fee to Domaco commensurate with the products sold.
Wernli added: "Domaco is an excellent partner for us to be working with. In particular, they specialise in buccal delivery technologies, which is in line with what we are trying to do with all our nutraceutical cannabinoid-derived products at Creso Pharma."
"Domaco is also a leading European producer of innovative products for global pharma and food companies."
"Partnering with them gives us the opportunity to make Creso Pharma as accessible and well-recognised as some of their other connections, including Blackmores, Bayer, Danone and Angelini."
The global nutraceutical market is due to hit $205bn (€190bn) this year, with the Swiss nutraceuticals ingredient market tipped to top $40m (€37bn) by 2018.
The anxiety and stress markets were valued at around $3.5bn (€3.3bn) in 2015, according to industry figures.
The global osteoporosis market is set to reach around $14.3bn (€13.3bn) by 2021 and the osteoarthritis market, valued at $5.1bn (€4.7bn) in 2015, is expected to reach $5.9bn (€5.5bn) by 2022. The veterinary health market is estimated be worth $39.7bn (€36.9bn).
The product to alleviate anxiety and stress is due to launch in the first half of 2018, the same year as the pet product is to launch, while the osteoporosis and osteoarthritis product is due out in the first half of 2019.
The new human CBD-infused nutraceutical products will use a buccal delivery system so they will be absorbed via blood vessels in the mouth.
Creso says this will ensure high absorption and increased bioavailability of the plant help extract and its cannabinoids.
The anxiety and stress product uses a fast-acting alternative therapeutic option designed to improve mental focus and stress reduction while avoiding the gastrointestinal side effects and addiction dependency found with many alternative therapies.
The animal product will use a novel formulation adapted for veterinary use.
Similar type deals ahead?
Doctor Wernli said: "We will continue to build our commercial networks to have Creso Pharma's products accessible to as many people across as broad geographical range as possible, both in the human and animal health markets."
"Deals like the one we have signed with Domaco boost and enrich our portfolio."