Canopy Growth Corporation (TSX:WEED) (OTC:TWMJF) and its wholly-owned subsidiary, Spektrum Cannabis GmbH, just announced a supply license agreement with Alcaliber, S.A., a leading player in the international pharmaceutical industry based in Spain. While many readers are presumably familiar with Canopy Growth, it's safe to assume most have never heard of Alcaliber.
Alcaliber specializes in research and development, breeding and cultivation, and the extraction, purification and preparation of Narcotic Raw Materials and Active Pharmaceutical Ingredients. Alcaliber prides itself on being "a leading company in the World Drug Industry being the largest world producer of Morphine (27% of global production)." 40% owned by Sanofi S.A. (NYSE:SNY), Alcaliber is not exactly the company most cannabis consumers would expect Canopy to partner with.
Spektrum Cannabis, Canopy's wholly-owned European distribution company, distributes cannabis medicine products to hundreds of pharmacies across Germany. Spektrum's facility in Germany is GMP-certified by the relevant authority, Regierungspräsidium Tübingen, making it, to the company's knowledge, the only GMP-certified cannabis processing facility in Germany.
"Entering this agreement with a large, well-recognized European partner like Alcaliber, with a proven background in controlled substances and an ability to produce plant-based medication solidifies our commitment to diversified production capabilities not just in Canada, but also new and emerging cannabis markets," said Bruce Linton, Chairman & CEO, Canopy Growth. "This agreement gives us additional resources to aggressively enter the European market where federally permitted by law, while we continue to work to establish our own complementary production footprint for cannabis cultivation, value-add oil extraction and Softgel production in the European Union."
Alcaliber has been granted a license to cultivate, produce, manufacture, export/import, and commercialize cannabis for medical and scientific purposes by the Spanish Agency of Medicinal Products and Medical Devices. As a result of this agreement, Canopy Growth and Spektrum will grant Alcaliber a license to use certain strains and seeds to be grown and cultivated at Alcaliber's facilities for sale worldwide.
"Alcaliber is really enthusiastic about pharmaceutical cannabis and our agreement with Canopy Growth and Spektrum is a perfect symbiosis," explained Jose Antonio de la Puente, CEO, Alcaliber. "There is a clear demand for pharmaceutical cannabis produced in accordance with pharmaceutical standards and the expertise we have developed manufacturing narcotic derivatives for over 40 years combined with Canopy Growth and Spektrum's cannabis experience will be a great step forward for the industry."
As a proven global leader in pharmaceuticals with an established track record of producing Narcotic Raw Materials and Active Pharmaceutical Ingedientss, as well as existing production infrastructure and distribution networks in place, Alcaliber's involvement has the potential to meaningfully expedite Spektrum's strategic expansion in the European market.
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