Zelda does pot pills deal with tech wreck 1-Page’s new German arm
Health & Biotech
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Cannabis biotech Zelda has inked a deal with the new German arm of former ASX tech wreck 1-Page.
Zelda (ASX:ZLD) has promised 1-Page subsidiary HAPA Medical the first rights to distribute or make for the German market any formulations the biotech finalises.
New managing director Richard Hopkins, who was poached from doggy cancer biotech PharmAust (ASX:PAA) in May, says they could have a product in Germany by the end of next year.
Zelda will finish an insomnia clinical trial around the middle of 2019.
But because cannabis is already being prescribed by doctors without much trial data to back its efficacy, Dr Hopkins says that if the data shows it’s successful they could sell an oil product for insomnia in Germany soon after the trial finishes.
HAPA is owned by 1-Page (ASX:1PG), the once-high flying tech stock that finished crashing to earth in 2017.
The company was resurrected by Andrew Chapman at Merchant Group. In February it said it was transitioning into the latest hot sector, medical cannabis, by buying HAPA for 90 million shares and €1.3 million ($2 million).
After months of battling the ASX, the 1-Page board threw their toys out of their cot and said they’d de-list and move to Canada or Germany.
Zelda says they’re partnering with HAPA because it’s a first mover in Germany and developing a cultivation-to-clinic model.
Dr Hopkins pointed out a key reason for going to German rather than the Canadian market: size.
“Germany is expected to become the world’s single largest market for medicinal cannabis,” he told investors.
Medical cannabis was fully legalised in March 2017 in Germany and insurers already cover the associated drugs, meaning it’s effectively subsidised for users.
In Australia and Canada health insurers do not cover medical cannabis.
Germany also has a population of 83 million, compared to Canada’s 37 million and Australia’s 25 million.
Zelda shares ticked up 1.3 per cent to 7.8c. They’ve traded between 6.7c and 16c over the past year.