In a recent ASX update, Creso Pharma Limited (ASX: CPH, FRA: 1X8) notified that the launch preparations of its cannaQIX® product range in Africa are on track. The company intends to launch cannaQIX® range with the 11th largest pharmaceutical company in South Africa - Pharma Dynamics, in 9 African countries in March quarter of 2020
Counted amongst the top eight leading global generic pharmaceutical companies, Pharma Dynamics is a subsidiary of Lupin Limited (NSE: LUPIN), holding sole distribution rights of the company’s cannaQIX® product range across Namibia, South Africa, Swaziland, Angola, Botswana, Mozambique, Zimbabwe, Lesotho and Uganda.
Creso Pharma Entered African Market with Pharma Dynamics
The company entered into a binding Commercial Term Sheet with Pharma Dynamics in August this year to distribute its cannaQIX® products range in South Africa. The agreement provides an opportunity for South African customers to gain access to a high-quality, affordable, broad-spectrum hemp oil based GMP nutraceutical product via cannaQIX® product range.
In line with the commercial agreement, Pharma Dynamics has already placed two initial orders valuing about $300,000 for cannaQIX® regular. The company informed that the first production orders for cannaQIX® regular are currently in process.
The cannaQIX® product range comprises CBD (cannabidiol) hemp oil-based nutraceuticals of Creso Pharma that use the company’s exclusive innovative delivery technology. These products contain wide-ranging organic hemp oil extract with cannabidiol with the aim of reducing stress and supporting mental and nervous functions.
Developed to Good Manufacturing Practice standards, the cannaQIX® range is produced with a “Swiss Made” label in Switzerland by Creso Pharma’s partner, Domaco, Dr. med Aufdermaur AG to the highest Swiss quality.
Global Market Penetration of cannaQIX® Expands Rapidly
The global market penetration of cannaQIX® product range has improved substantially in 2019, with an expansion to Latin America, Israel, Europe, Canada and the APAC region. The cannaQIX® product became available to major UK retailers like Boots and Holland & Barrett in the June quarter. The company also obtained approval to import the product into Australia and Brazil.
Subsequently, Creso Pharma announced an exclusive distribution agreement for cannaQIX® product in New Zealand with Medleaf Therapeutics.
The company has recently confirmed the arrival of the first shipment of its innovative therapeutic product, cannaQIX®50 in Australia.
The product is being marketed under ‘LozaCan’ brand name via an exclusive distributor of Australia, Burleigh Heads Cannabis (BHC). The distribution follows the signing of a recent exclusive Distribution Agreement with distributor BHC in April and obtaining an import license for Australia.
The company reported that it has commenced sales of cannaQIX® 50 as a medicinal cannabis product to BHC, which is an established business helping patients getting access to medical cannabis products in Australia.
Moreover, BHC verified that prescriptions are already happening and cannaQIX®50 is receiving very favourable feedback from patients as well as physicians. The two entities are also exploring the introduction of additional medicinal/therapeutic products from the company’s pipeline of new products to the Australian market.
The collaboration between the two entities will enable the company leverage BHC’s experience with Australian regulations and established distribution networks, promoting patients’ access to the company’s products in Australia.
Way Ahead in 2020
Creso Pharma believes that the new sales being generated in Africa and the recent developments in Australia will help it deliver strong revenue growth in the fiscal year 2020. The company’s product pipeline comprises a total of 13 products, out of which four are generating sales while nine are awaiting commercialisation.
The company has the following plans for its products:
- cannAPEAL® and cannAPEAL® NITE are planned to be launched in the Middle East, in AsiaPac and in other countries where CBD is not yet allowed with market introductions in 2020.
- cannaQIX®25 is likely to be launched in Germany via Multi Level Marketing (MLM) in H1 2020.
- anibidiol® Oil 500 and anibidiol® EQUI are expected to be unveiled with Virbac in Switzerland in Q1 and Q2 2020, respectively.
- cannaDOL® is likely to be introduced in Germany in Q1 2020.
- cannaQIX®NITE, Anibidiol® 80 and cannaQIX® Oral Care are also ready for commercial launch.
Creso Pharma expects the signing of more commercial partnerships in future to expand the reach of its cannaQIX® 10 and cannaQIX® 50 human health products and to launch the recently developed products in additional European countries. It is prioritising the Scandinavian countries, Israel, Spain, Portugal and Poland to expand its international product penetration.
CPH last traded at $0.125 on 11th December 2019.
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