Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has launched efforts to enter the expanding Swiss cannabis market, with a non-binding Letter of Intent (LOI) forming the first overture to Innuana AG Switzerland, a local licensed cannabis grower, to grow and market medicinal cannabis in the Swiss market on Creso’s behalf.
Innuana is focused on researching, growing, processing and producing medicinal-grade cannabis. The group has been involved in cannabis cultivation, breeding and research for several years and has established a solid reputation in Switzerland, receiving an initial public order to grow cannabis for the local government to service the city of Zurich’s needs into 2022 and beyond.
Creso Pharma and Innuana have executed the LOI following recent amendments to the Swiss Narcotics Act in March 2021 that facilitate patient access for the use of medicinal cannabis in Switzerland.
The Swiss market is expected to constitute over 110,000 medical cannabis patients in 2022, in a market growing to A$1.9 billion in value by 2028 according to the 6th edition of the European Cannabis Report.
Shares have been as much as 12.5% higher to A$0.135 with almost 34 million changing hands.
An open, expanding market
“Recent regulatory shifts in Switzerland have unlocked a significant opportunity for Creso Pharma and this collaboration with Innuana marks the first step in our expansion into the Swiss prescription market,” Creso Pharma director of international operations Jorge Wernli said.
“Healthcare professionals will now be able to prescribe medicinal cannabis products to a large range of patients and importantly this agreement will allow Creso to grow cannabis to its own specifications, utilising pharmaceutical experience and product expertise.
“Initially, we will focus on Switzerland with the medium-term objective to export the products into countries with similar opportunities.”
Following the change of regulations, the cultivation, processing, production and trade of medicinal cannabis will become subject to the authorisation and control system of the Swiss agency for therapeutic products, Swissmedic.
Accordingly, treatment with medicinal cannabis will no longer require an exceptional authorization by the Federal Office of Public Health (FOPH).
With the new laws, the commercial export of cannabis for medical purposes will also be permitted, providing additional opportunities for both companies.
The legislative shifts will enable Creso Pharma to expand its Swiss operations and enter into the Swiss medicinal cannabis market. Under the LOI, Innuana will grow and produce medicinal cannabis products to the company’s specifications, which Creso Pharma will sell and distribute to patients.
Creso will initially target sales at doctors and patients in the oncological clinics in Switzerland, where its established relationship with the medical sector, developed over several years, should give the company a networking advantage.
Agreement terms
The initial term of the agreement is one year, with an automatic renewal for another year unless either party notifies of a decision to withdraw 30 days before the expiry of the initial or renewal term. Should the parties not enter into a formal commercial agreement on or before December 30, 2022, the LOI shall automatically terminate.
Creso Pharma will bring in its medical and pharmaceutical expertise for the growing specifications, and the marketing and use of the product. Creso will also leverage its established relationships with prescribers and clinics in Switzerland to drive prescription sales growth.
The expansion into Switzerland is the next step in Creso’s efforts to become an internationally marketed cannabis provider. The company already enjoys a large footprint in Europe and has been expanding its efforts in North America as well.
About the company
Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) plans to bring the best of cannabis to better the lives of people and animals through its pharmaceutical expertise.
The company uses GMP (Good Manufacturing Practice) compliant development and manufacturing standards for its products as a reference for quality excellence.
