Avicanna Inc. (TSX: AVCN, OTCQX: AVCNF, FSE: 0NN), a Toronto-based biopharmaceutical company specializing in cannabinoid-based products, has achieved a significant milestone by completing its first delivery of proprietary topical formulations to a multinational pharmaceutical company. This delivery is part of an exclusive supply agreement that positions Avicanna to expand its presence in the European market, particularly in Germany.
The initial shipment includes two innovative products: a 3% CBD localized cream and a 2% CBD combined with 0.5% CBG transdermal gel. These formulations leverage Avicanna’s patented deep tissue technology and have undergone rigorous testing, including human irritation studies and real-world evidence assessments. The company’s CEO, Aras Azadian, expressed enthusiasm about the potential of these products in the German and broader European over-the-counter markets, highlighting their development through Avicanna’s Canadian R&D platform and manufacturing operations in South America.
The successful delivery follows extensive pre-importation testing required for compliance with cosmetic regulations in Germany. This regulatory diligence underscores Avicanna’s commitment to quality and safety as it navigates the complexities of international markets.
The multinational partner involved is well-established, operating across four continents with a robust commercial infrastructure in Europe. This partnership is pivotal as it enables Avicanna to leverage existing distribution networks for the launch of its products in six European countries by 2025, with plans for further expansion shortly thereafter. The agreement includes provisions for minimum order quantities and commercial milestones to maintain exclusivity, ensuring a stable revenue stream for Avicanna as it grows its footprint in Europe.
Avicanna’s topical products are designed to address specific dermatological conditions and local inflammatory issues. The 3% CBD localized cream targets skin ailments, while the CBG transdermal gel aims to alleviate pain and inflammation. Both products are formulated with organic and sustainable cannabinoids sourced from Avicanna’s subsidiary, Santa Marta Golden Hemp S.A.S., located in Colombia.
This strategic sourcing not only supports Avicanna’s sustainability goals but also enhances its ability to control the quality of its active ingredients. The company has established itself as a leader in cannabinoid science, with over thirty proprietary products developed through rigorous research and clinical trials.
As Avicanna moves forward, it anticipates earning licensing fees associated with meeting specific milestones set forth in its agreement with the pharmaceutical partner. The successful launch of these products could pave the way for additional collaborations and product lines within the European market.
Avicanna’s broader strategy encompasses four key business pillars: medical cannabis formulations (RHO Phyto™), a medical cannabis care platform (MyMedi.ca), a pharmaceutical pipeline targeting unmet medical needs, and active pharmaceutical ingredients (Aureus Santa Marta™). This diversified approach positions Avicanna to capitalize on growth opportunities across various segments of the cannabinoid market, and marking a significant step in the company’s international expansion strategy.
