Creso Pharma Limited had secured a distribution agreement with Route2 Pharm Pvt Ltd, which will allow Creso to import, market, distribute and sell its innovative hemp-derived therapeutic products exclusively into Pakistan and the Philippines.
The deal also allows Creso to market, distribute and sell its products non-exclusively into other potential target markets including Cambodia, Afghanistan, Azerbaijan, Bangladesh, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.
The agreement is worth A$2.5 million in the first year and covers a total potential market of over 750 million people.
Route2 is a subsidiary company of the Pakistan-based Route2Health, which has over thirty years of pharmaceutical sciences experience and produces and distributes world-class herbal remedies and dietary supplements.
Route2Health has United States Pharmacopeia (USP) GMP compliant manufacturing facilities and global partnerships.
The agreement will span three years and gives Route2 exclusivity rights over the CPH's cannaQIX® and cannaDOL product lines in Pakistan and the Phillipines, assuming Route2 achieving minimum order quantities for each product line in the first contractual year, being the 1st of January to the 31st December.
The minimum order quantities will come into effect three months after each product is registered in each exclusive territory, and Route 2 shall launch and commence distribution within 6 months after such product registration, with minimum order quantities in the first contractual year being adjusted pro-rata relative to the date that a product is registered and launched in an exclusive territory.
Route 2 is responsible for obtaining all of the legally required registrations, authorizations and certifications during the agreement.
For the second and third contractual years of the Agreement, the Parties will negotiate in good faith to set new minimum sales targets.
Creso has reserved the right to terminate the agreement should minimum order quantities be unmet within any year of the contract,
"Our mission is to deliver access to affordable, high quality, broad-spectrum, GMP products for the betterment of people's lives everywhere. We're delighted to conclude this important partnership, through which we hope to provide the opportunity for millions of people to have access to our innovative products," Non-executive Chairman Adam Blumenthal.
Tausif Khan, the Chairman of Route2 and Highnoon Laboratories said: "We are very excited to progress this partnership with leading global cannabis company Creso Pharma. There exists a vast amount of real-world and strong clinical evidence which supports the safety and efficacy of hempbased therapeutic products."
"The basis for this partnership is a shared commitment of bringing affordable, high-quality products to market which improve peoples lives. We intend to fully leverage the financial and marketing strength of our group to deliver on this mission," added Khan.
Shahnawaz Baig, Managing Director of Route2 said: "Our company has thirty years' experience of successfully bringing products to market. These products draw on our knowledge in both pharmaceutical sciences and time-tested herbal remedies."
"We have been strongly encouraged with the recent regulatory breakthrough on CBD in Pakistan, which will result in the removal of obstacles to patient access. We continue to work closely with the relevant authorities to pave a way for patients and consumers to gain access to the benefits of Creso's innovative hemp-derived therapeutic
products," Baig concluded.
For more information:
Creso Pharma
info@cresopharma.com
cresopharma.com