CPH to Launch Innovative Hemp-based Animal Health Products with Virbac in Switzerland
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As scientific studies continue to validate a range of health-related cannabis benefits for human beings, it’s becoming increasingly clear that cannabis and hemp also have strong application potential in a range of other industries, including veterinary care and pet products.
Seeking to establish a point of difference in an increasingly competitive medicinal cannabis market is Creso Pharma Ltd (ASX:CPH), which is set to launch its innovative animal health hemp-based complementary feed products in Switzerland.
Today, CPH signed an exclusive commercialisation agreement with Virbac, a global pharmaceutical animal health company, for the launch of its first original hemp-based complementary animal feed products.
The Swiss launch of CPH’s proprietary formulated hemp-based complementary feed products for companion animals, anibidiol® 1.25 and anibidiol® 2.5, is set for the fourth quarter of this year.
CPH is a leading player in medicinal cannabis and cannabidiol (CBD) innovation, and develops cannabis and hemp-derived therapeutic-grade CBD nutraceuticals and medicinal cannabis products with wide patient and consumer reach for both human and animal health.
There is still much to do in this area, however, and CPH remains a speculative stock. Investors should seek professional financial advice if considering this stock for their portfolio.
This news comes in the wake of the registration of hemp extract on the European Feeds Material Register earlier this year, and timing in general could scarcely be more salient for CPH’s commercialisation debut in animal health.
CPH has developed and will manufacture the products, and Virbac will launch, market and promote them to veterinarians and pet-owning households.
The agreement will commence from the 1 st of September, and remains in effect for at least 3 years.
Currently capped at $43.89 million and thriving, the forward-focused CPH is impeccably placed for its first market introduction of its hemp-based feed products in the fourth quarter of this year.
The Catalyst: Swiss Commercialisation of European Animal Products
CPH brings expansive pharmaceutical expertise and methodological rigor to the medicinal cannabis space, and already has worldwide rights for a number of unique and market-disrupting delivery technologies which enhance the bioavailability and absorption of cannabinoids.
This company is firmly focused on the development, manufacturing and commercialisation of nutraceutical products for both human and animal health, using hemp-based, full-plant extracts in compliance with Good Agricultural Practice (GAP) and Good Manufacturing Practice (GMP) standards.
Having recently signed an exclusive deal with the highly recognised Swiss-based Cannapharm, as well as acquiring 100% of the Canadian Mernova Medicinal Inc ., an acquisition that will importantly position CPH as a Canadian producer of legal cannabis, CPH is on quite the international high.
And now it’s cornering the Swiss market.
With the announcement landing on August 7, CPH is amplifying its rapidly growing credentials by signing an exclusive three-year commercialisation agreement with Virbac to distribute its high-quality, proprietary formulated, hemp-based complementary feed products for companion animals in Switzerland and Lichtenstein.
The agreement is, however, still in its early stages and investors should seek professional financial advice if considering this stock for their portfolio.
As a global pharmaceutical animal health company, Virbac’s approach obviously meshes well with CPH’s.
Virbac is a powerful partner to gain — with a turnover of €872 million (AU$1.29BN) in 2016, it currently ranks as the seventh largest pharmaceutical veterinary company worldwide.
Virbac has a high-impact presence in over 100 countries, and more than 4,800 employees and sales subsidiaries across 31 countries.
With its wide range of vaccines and medicines used in the prevention and treatment of the main pathologies for companion and food-producing animals, Virbac’s support provides CPH with strong leverage.
The partnership also assists with Virbac’s mission to shape the future of animal health. The Swiss launch of the Anibidiol® range will provide the veterinary market with an innovative product tailored for the well-being of companion animals, and will be in high demand, so this is very much a mutually beneficial collaboration.
This agreement is expected to lead to highly productive synergies, enabling CPH to reap the rewards of Virbac’s strong worldwide presence and science-grounded experience in marketing products of this nature.
With the launch on schedule for the final quarter of 2017, CPH is mounting a direct path to begin the first market introductions of its hemp-based complementary feed products for companion animals in Switzerland and Lichtenstein.
Anibidiol ® 1.25 and anibidiol ® 2.5 are designed for companion animals, especially cats and dogs, and come in proprietary granule formulations. These products are designed to target stress and behavioural problems, chronic pain, and age-related ailments in elder animals.
They contain full plant hemp extract in proprietary formulations, promoting well-being by supporting the immune system, the natural response, and the behavioural balance of the companion animal in question.
CPH’s anibidiol ® products are standardised in composition and dose and in innovative proprietary delivery systems, enhancing bioavailability and absorption.
In July, the Swiss agency Agroscope (a sub-department in the Swiss Federal Department of Economic Affairs, Education and Research (RAER) responsible for safe feed in and trade from Switzerland) provided confirmation of CPH’s adherence to Swiss feed regulations and issued Free Sales Certificates for the anibidiol ® product range.
Importantly, this product range also addresses a largely unmet need: for non-pharmaceutical therapeutic approaches which are natural and well-tolerated by the animals – for example, which avoid GI and dependence side-effects.
The pet-owning demographic is clearly receptive to the kinds of products CPH is about to launch. 41% of pet owners have considered or tried various alternative therapies including nutritional supplements (29%) and herbal remedies (7%).
Bearing that in mind, CPH is tapping into a pair of interconnected robust markets which seem to have recession-proof staying power. Around 57% of households across the globe are pet-owning, and 33% have dogs.
This recession-resistant worldwide animal health market is estimated to be worth US$30 billion and is projected to continue to show rapid growth.
How much of this market CPH is able to tap remains to be seen, so investors should seek professional financial advice for further information if considering this stock for their portfolio.
These are still early days yet, but with this exclusive agreement under its belt, CPH is well on track to pursue commercialisation in a variety of other locations.
A successful launch in Switzerland, which is widely regarded as a regulatory and marketing reference country for many countries in Europe, Latin America and Asia Pacific, will enable it to expand into additional international markets.
Currently valued at $43.89 million, and with a torrent of news flow expected over the coming months, CPH has been broadening its turf in leaps and bounds, and is quickly emerging as a notable leader in medicinal cannabis and cannabidiol innovation.
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