Creso Pharma picking up steam with more orders for hemp oil pet products
Health & Biotech
Health & Biotech
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Special Report: Creso Pharma (ASX:CPH) has received three new purchase orders for its anibidiol line of hemp oil animal health products that work to reduce stress and fatigue in cats and dogs.
The orders total CHF277,000 (A$414,000) and brings purchase orders derived from Creso’s animal health segment to ~$975,000 for the year, demonstrating the strong demand for the company’s animal health products.
The products will be shipped to commercial partners in Europe in the coming weeks, and those partners will then market the products to consumers.
Creso’s anibidiol line of hemp oil products for cats and dogs are designed to promote their well-being and strengthen their immune and nervous systems. Some are “relax” products aimed at stressed pets, but the products don’t contain THC and thus won’t cause a hallucinogenic experience in cats or dogs.
Creso is also working to develop a hemp flour-based complementary feed for horses and other large companion animals and zoo animals.
“These purchase orders are a major achievement for the company during this challenging regulatory situation and COVID time,” says Creso Pharma commercial director Jorge Wernli.
“They further highlight the demand we are witnessing for our innovative products across Europe and vindicates the company’s strategy of investing in its animal health business.
“We expect the animal health segment to continue to grow, with additional purchase orders expected in the coming months,” Wernli said.
“Management are also exploring a number of ways to further unlock the market, and we believe we are well-placed to grow our footprint in this space.”
Since Creso’s anibidiol line was launched in 2017, it has shipped more than four million doses in purchase orders.
Creso to benefit from court ruling, regulatory changes
Meanwhile, Creso is also looking to capitalise on a decision by Europe’s highest court that CBD can be sold freely in the European Union.
The Court of Justice of the European Union on November 19 ruled in favour of CBD company KanaVape, deciding that a French ban on hemp-derived CBD products contravened an EU law on free trade between EU member states.
CBD, the court ruled, is not a narcotic and “does not appear to have any psychotropic effect or any harmful effect on human health”.
The ruling is set to significantly open the European CBD market, as it means that CBD legally produced in one EU country can be exported and marketed to all of them.
Creso in August signed an agreement with DHS Business Portugal to introduce its CBD topical gels and oral care products in the Portuguese and Spanish markets and says it is well funded to pursue a number of growth opportunities.
Creso is also closely watching the situation in Australia, where it says the down-scheduling of CBD oil would unlock a huge opportunity for the company.
Australia’s Therapeutics Goods Administration last week advised its final decision is expected in December on whether to allow CBD products to be sold in pharmacies without a prescription.
Currently Creso’s cannaQIX 50 lozenges are being sold in Australia as a medicinal cannabis product under the “LozaCan” brand via distribution partner Burleigh Heads Cannabis.
The company also has a wide range of CBD and hemp-oil products under the cannaQIX brand that it expects to sell in Australia following any favourable regulatory decision.
This article was developed in collaboration with Creso Pharma, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.