Marijuana Business Magazine November-December 2019

Partnership PIONEERS Vireo Health and Ligand Pharmaceuticals CASE STUDY KEEPING IT GOING Vireo and Ligand finally struck a licensing and supply agreement Nov. 19, 2015, “granting Vireo an exclusive right in certain states within the United States and certain global territories to use Captisol in Vireo’s development and commercialization of pharmaceutical-grade cannabinoid-based products,” according to an 8-K that Ligand filed at the time with the U.S. Securities and Exchange Commission. According to the filing, the agreement also provided that Ligand “will receive an upfront payment and could also potentially receive milestone payments, plus tiered royalties from 4% to 10% on net sales for products that use the Captisol technology. Ligand will also receive revenue from any shipment of Captisol to Vireo for clinical and commercial use.” As for Vireo, the 8-K said Ligand believes Captisol “may help scientists and physicians at Vireo overcome formulation hurdles unique to cannabinoid-based products.” NEXT STEPS Kingsley said Vireo’s collaboration with Ligand remains strong and that his company has several new cannabinoid and Captisol-based drugs, including at least one that has a federal U.S. patent. Kingsley and his counterparts at Ligand hope those patented formulations can eventually get FDA approval. “There are a lot of studies to be done. But our hope is that it (Captisol) will not only help cannabinoids to dissolve more easily in water, it will help the body to use them more efficiently. So less will go further,” Kingsley said of the drugs. Possible cannabinoid-Captisol products being considered include powder, liquids, softgels, intravenous medicines and topicals, Kingsley said. “The furthest we could go with this would be a full-on FDA path where we actually give people IV cannabinoids in combination with Captisol. For example, you break your ankle and you are in the emergency room, the first step is normally morphine. I’d love to see a future where 10 years from now it’s IV cannabinoids.” Omar Sacirbey covers the cannabis industry for Marijuana Business Magazine. You can reach him at omars@mjbizdaily.com. The CEO of Vireo Health believes the companyʼs science background was “one of the biggest door openers” when partnering with a pharmaceutical company. Courtesy Photos Marijuana Business Magazine | November-December 2019 82