Creso Pharma signs key commercial agreement as it expands global reach into the African market
Health & Biotech
Health & Biotech
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Special Report: The medicinal cannabis company is on target to launch its cannaQIX® product range into South Africa in Q1 2020.
Creso Pharma (ASX:CPH) has big plans for 2020, having laid the groundwork for a global distribution strategy across Europe, Latin America, the US, the Middle East, and Africa.
And in line with that strategy, the company has just announced a key commercial agreement with the South Africa-based Pharma Dynamics.
Under the terms of the deal, Pharma Dynamics will have exclusive distribution rights for Creso’s cannaQIX® product range of CBD hemp oil nutraceuticals.
And the agreement is already revenue generative, with Pharma Dynamics making two initial orders for cannaQIX® Regular to the value of $A300,000.
From there, it expects to establish a distribution pathway across a leading network of South African pharmacies in the March quarter of 2020 before expanding to additional African jurisdictions.
For Eric Roos, CEO of Pharma Dynamics, the deal presents a good opportunity to execute on a commercial strategy with a company that has a proven track record in the space.
“Creso Pharma is globally recognised as a leader in the production of cannabis products, with distribution agreements already in place across Europe and the Asia-Pacific. We are looking forward to the launch of the cannaQIX® range in Africa.”
Creso Pharma CEO and Co-Founder Dr Miri Halperin Wernli said Pharma Dynamics was the “preferred partner” for Creso in the African market.
“We are delighted to offer a high quality product to customers, with a top quality partner at an affordable price,” she said.
The deal is a continuation of the momentum that Creso has built in global markets in 2019, having already partnered up in UK with PharmaCare and entering Hollands & Boots in July followed by an exclusive distribution agreement in August with the New Zealand-based JC Logistics.
Creso also recently announced the arrival of its first shipment of cannaQIX®50 in Australia, to be sold under the brand name ‘LozaCan’ through its exclusive Australian distributor, Burleigh Heads Cannabis.
The company has global operations in Switzerland and cultivation facilities Nova Scotia Canada.
Add it all up, and 2020 has the potential to be a watershed year for the company as it drives sales growth in the $US200 billion market for nutraceuticals.