Khiron said the acquisition will accelerate its growth in Europe by controlling the complete value chain for its products and gaining direct access to German pharmacies.
The global medical cannabis company, Khiron Life Sciences is set to enter into an agreement to acquire Pharmadrug GmbH from its parent company, PharmaDrug Inc.
Pharmadrug GmbH has been active worldwide for almost 40 years as a manufacturer and wholesaler of medicinal products and active pharmaceutical ingredients. The company is EU-GMP and EU-GDP certified, fulfilling the European guidelines that allow it to hold a license to handle narcotics in Germany.
Khiron also announced record revenue in medical cannabis this week of over $2.6 million in the first quarter of 2022, a 470 per cent increase from the prior year and 32 per cent increase from quarter four 2021. Aside from its operations in Germany, Khiron has a sales presence in Colombia, the UK, Peru and Brazil, and is positioned to commence sales in Mexico.
“This acquisition will provide us with a European manufacturing and distribution centre for cannabinoid-based medicines with EU-GMP certification. This will have a direct positive impact on our revenues and higher gross margins,” Franziska Katterbach, president of Khiron Europe, said.
“The long-established German company will be instrumental in expanding Khiron’s product portfolio with new dosage formats and bringing Khiron’s full-spectrum extracts to Germany and the United Kingdom to grow the patient base.
“Our team in Europe is excited to join forces with new colleagues from Pharmadrug GmbH, with their valuable expertise in the German pharmaceutical market.”
Under the terms of the deal, Khiron will acquire all of the shares of Pharmadrug GmbH from PharmaDrug, in consideration for common shares of Khiron and a promissory note.
