Creso Pharma sells hemp products in Ecuador, gears up for the lucrative Latin American market
Health & Biotech
Health & Biotech
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The extended deal signed by Creso Pharma will see the company enter Ecuador for the first time, as it sets eyes on the bigger Latin American market.
Global medicinal cannabis company, Creso Pharma (ASX:CPH), is gearing up to enter the lucrative Latin American market, after expanding its distribution agreement with leading Ecuadorian nutritional and supplements company, Route2 Pharma.
The expanded agreement will allow for the distribution of Creso’s innovative hemp derived therapeutic products into Ecuador, sold under the cannaQIX and CannaDOL brands.
Route2 is a subsidiary of Route2Health, a company which has over 30 years of pharmaceutical science experience in producing world-class herbal remedies and dietary supplements.
The deal today follows the initial agreement signed between the two companies in February. That deal already locked in $2.48 million in minimum orders for Creso Pharma’s CannaQix 10, Cannaqix 50 and CannaDOL product lines, to be sold in Pakistan.
Under the new agreement, the two companies have now agreed to collaborate with Pakistan-listed Highnoon Laboratories, to leverage their combined network and target international markets, which now includes Ecuador.
The agreed existing markets under the deal include Pakistan, Afghanistan, Azerbaijan, Bangladesh, Cambodia, Georgia, the Maldives, Myanmar, the Philippines, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.
Ecuador provides a large market opportunity for Creso, as the country recently passed legislation to approve the production, commercialisation, and consumption of cannabis for medicinal or therapeutic treatment.
Ecuador has a population of 15 million, and is part of the emerging medicinal cannabis market in the Latin America and Caribbean region, which combined has a population of 655 million people.
The country will provide Creso with a strong entry point into this lucrative and rapidly growing South American market, which is expected to grow to over US$300m by 2024.
“The evolving regulations in Ecuador and the broader Latin American and Caribbean region present a tremendous opportunity for both our human and animal products and the extension of our distribution agreement with an established company such as Route2 provides the opportunity for millions of people to gain access to our innovative products,” Creso’s non-executive chairman, Adam Blumenthal said.
“We are witnessing strong uptake across our entire product suite and this agreement provides further evidence of the considerable potential the company has in established and emerging markets alike.”
Creso Pharma’s portfolio of cannabis and hemp-derived products focuses on four key areas: therapeutics, nutraceuticals, animal health, and cosmetics.
The company has been making inroads recently in its hemp-based products.
In May, it entered the livestock market, after finalising the development of its new hemp flour-based Anibidiol swine product.
The hemp flour and oat bran-based feed product has been designed to reduce the stress levels and improve the wellbeing of pigs.
Late last year, the company also received three new purchase orders in Europe for its anibidiol line of hemp oil animal products that work to reduce stress and fatigue in cats and dogs.
Overall, Creso has a portfolio of 13 products, eight of which have been commercialised and are generating consistent revenues, with the remaining pending commercialisation shortly.
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.