Cann Group Limited, an Australian cannabis producer, said it has entered into an exclusive evaluation and option deal with GSK Consumer Healthcare, a subsidiary of U.K. drugmaker GlaxoSmithKline.
The deal is regarding the potential commercialization of Cann’s CBD capsules for over-the-counter distribution in Australia and, potentially, globally.
“During the period of exclusivity, GSK Consumer Healthcare will undertake an evaluation of commercial potential and will review the results of Cann’s Phase 3 CBD clinical trial, which is currently underway,” Cann Group said in a statement.
Recruitment for the third phase of Cann’s CBD trial is currently underway.
The clinical trial is studying the efficacy of Cann’s CBD-Satipharm capsule for the short-term treatment of sleep disturbances and quality-of-life outcomes.
The companies said they will enter into negotiations on a definitive, exclusive agreement for the marketing, sale and distribution of the Satipharm CBD product in Australia, in parallel with the evaluation.
Cann Group also said GSK Consumer Healthcare has “potential interest” in first rights to assess commercialization outside Australia.
Cann Group Peter Crock said pharma’s interest in a validation for the Satipharm delivery platform.
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“Cann’s ability to produce a CBD capsule that presents as a regular pharmaceutical and has proven benefits in terms of stability and bioavailability has attracted interest from a number of potential distribution partners,” he said.
“We are delighted to have this opportunity to work with GSK Consumer Healthcare, which would bring industry leading expertise and market access to our CBD product platform if we enter into a definitive exclusive agreement.”
Alberta-based Aurora Cannabis sold its stake in Cann Group in 2020.
Cann Group’s shares trade as CAN on the Australian Securities Exchange.