As time goes on, more and more pharmaceutical-based companies are getting involved in the cannabis industry including FSD Pharma. Recently, FSD Pharma entered themselves into the growing pill market. Not too long ago, FSD Pharma initiated and entered themselves into a non-binding letter of intent with a huge leader in the swiftly growing cannabis pill market, otherwise known as Canntab Therapeutics Limited. According to PR Newswire, FSD Pharma and its subsidiary—FV Pharma Inc. sealed a collaboration and profit-sharing agreement with Canntab Therapeutics Limited for the production and market of oral dose cannabis delivery platforms. Read on to find out more about FSD Pharma and Canntab, this recent agreement, and the kinds of cannabis products that’ll be manufactured, produced, and sold in the future.
About FSD Pharma & Their Mission
For those who don’t know, FSD Pharma owns a license to produce cannabis under the Access to Cannabis for Medical Purposes Regulations (ACMPR) via its completely-owned subsidiary, FV Pharma Inc. Their license was originally awarded last year on October 13th. FSD Pharma is headquartered in Cobourg, Canada in the former Kraft plant, which is about an hour away from Toronto, Ontario.
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Some of you may wonder what FSD Pharma’s mission is. According to their management team, FSD Pharma’s mission is to effectively transform their facility into the biggest indoor hydroponic cannabis facility in the world. One of the intentions of this company is to target every legal aspect of the cannabis industry, which includes processing, manufacturing, cultivation, extracts, research, and development.
About Canntab Therapeutics Limited & Their Mission
In addition, the other company that’s a part of the recent FSD Pharma collaboration and profit-sharing agreement is Canntab Therapeutics Limited. Canntab is known as a Canadian cannabis oral dosage formulation company that’s based in Markham, Ontario, Canada. Canntab participates in the research and development of various cutting-edge pharmaceutical grade creations of different cannabinoids. Thus far, Canntab has successfully developed an in-house form of technology to deliver standardized medical cannabis extracts from certain strains in an assortment of continual yet prolonged release pharmaceutical dosages for therapeutic uses. Overall, Canntab’s mission consists of putting ‘medical’ in medical cannabis.
Details About FSD Pharma And Canntab’s Collaboration & Profit-Sharing Agreement
Moreover, as briefly mentioned above, FSD Pharma and Canntab decided to team up to produce and market oral dose cannabis delivery platforms. FSD Pharma plans on supplying up to 10,000 square feet of space for Canntab at their 620,000 square foot facility in Cobourg, Ontario in which building, and installation will take place at Canntab’s own expense and at their own manufacturing facility within the bigger FSD facility. This section of the FSD facility will be referred to as “Canntab Premises”.
Furthermore, the “Canntab Premises” will function in accordance with good manufacturing practices in which a collection of original cannabis oral dose delivery platforms will be produced such as gel capsules and tablets in addition to other variations of cannabis-based products. These products will include both pain-relievers and sleep aids. Both FSD Pharma and Canntab foresee incredible opportunities through offering several different pharmaceutical cannabis-based tablets. Overall, the intention of the “Canntab Premises” is to provide Canadian international markets including Germany and Australia with these products.
Services FSD Pharma Plans To Offer Canntab & Royalty Percentages
On another note, FSD Pharma plans on helping Canntab properly prepare the items necessary to submit an application to Health Canada in order for Canntab to attain a license. Specifically, under the non-binding letter of intent’s specific terms, FSD Pharma will help Canntab attain a license to both process and sell different cannabis products in accordance to the Cannabis Act.
Due to the services FSD Pharma will offer Canntab, Canntab will give FSD Pharma a specific royalty percentage and profit-sharing rights based on the sale of Canntab products. Additionally, Canntab will give FSD Pharma 50 percent of Canntab’s retail sales profits that accumulated from their products. Also, FSD Pharma will be authorized to recollect 50 percent of the profits generated by FSD pharma sales of Canntab products. Then, Canntab plans on paying FSD Pharma a royalty of 3.5 percent of Canntab’s sale price for all the products that are manufactured and sold from “Canntab Premises”. From here, the non-binding letter of intent’s specific terms will be replaced by a definitive agreement in which both Canntab and FSD Pharma plan on executing by July 15th of this year. The following was stated about this agreement and overall move by FSD Pharma’s Chief Executive Officer, Thomas Fairfull:
Pills and tablets are the norm for most patients’ method of consuming medicine and nutraceuticals. It’s still difficult for doctors and other alternative health practitioners to prescribe smoking as a form of medicine. This agreement with Canntab adds to the growing FSD Pharma suite of cannabis-based products to be manufactured at our large facility.”
In your opinion, which large pharmaceutical company will be the next one to get involved in the cannabis industry? Stay tuned to find out while also witnessing the progression of pharmaceutical grade cannabis products. Please keep in mind that the information included in this article was pulled from PR Newswire, in which different assumptions of theirs were used to draw conclusions. The forward-looking information that’s in this piece and in the PR Newswire release is based on opinions and estimates of management at the date the information was produced.
