Zelira Therapeutics jumped 8% after it announced that it is entering one of the world’s largest and fastest-growing markets for cannabinoid-based medicines.
The developer of clinically validated cannabinoid-based medicines signed a 5-year exclusive distribution agreement with Canadian and Nasdaq-listed IM Cannabis Corp.’s German-based subsidiary Adjupharm, an EU GMP-certified medical cannabis distributor.
IMC is a multi-country operator in the medical and adult-use recreational cannabis sector with operations in Canada, Israel, and Germany.
The distribution agreement expands the availability of Zenivol, Zelira’s clinically validated cannabinoid-based insomnia medication, beyond Australia and into Germany. The German market is set to be one of the largest for global cannabinoid-based medicines.
In the first half of 2020, over €75 million worth of medical cannabis products were sold in Germany to an estimated patient population of around 120,000.
Adjupharm will be filing for formal German government reimbursement for its sales of Zenivol. If received, this will be the first time a Zelira Pharmaceutical Rx product will receive formal government reimbursement.
This distribution agreement, the first outside of the US and Australia for Zelira’s growing pharmaceutical products, follows the June 2021 publication of The University of Western Australia research team’s results from its double-blind, placebo-controlled, cross-over trial of Zenivol in chronic insomnia patients in the peer-reviewed journal SLEEP. SLEEP is the official publication of the Sleep Research Society, and the benchmark international journal for all sleep-related conditions.
Zelira Therapeutics Managing Director, Dr. Oludare Odumosu commented: “Today is a landmark day for Zelira, with the expansion into Germany being a key growth milestone for our company. We are delighted to be partnering with Adjupharm, given their reputation for delivering high-quality products to pharmacies and pharmaceutical wholesalers in Germany and the broader European region. This further validates the pharmaceutical quality of our Australian production capabilities and the safety and efficacy of our clinically validated cannabinoid-based medicines.”