Creso Pharma seeks to capitalise on European court ruling on CBD – ‘not narcotic’
Health & Biotech
Health & Biotech
Special Report: Creso Pharma (ASX:CPH) says a decision by European’s highest court that CBD can be freely sold in the European Union is a major development for the company.
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.
“The decision by the CJEU unlocks a number of significant opportunities for Creso Pharma, in a market that the company already has an established presence,” says non-executive chairman Adam Blumenthal.
“The European market has always played an important role in the company’s growth trajectory and the most recent regulatory shift will allow us to continue to progress a number of near term initiatives, engineered to unlock value for shareholders.”
Huge opportunity in Australia
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.
“The potential down-scheduling of CBD is a major development for the broader market and provides Creso Pharma with a number of opportunities and potential new sales channels,” Blumenthal said last week.
“Australia has always been considered an important market in our growth strategy. Ahead of the TGA’s final decision, the board and management have been exploring initiatives which will allow us to capture a large market share in Australia and unlock value for our shareholders.
“The company remains well capitalised and looks forward to providing ongoing updates on progress.”
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.