CanniMed Therapeutics Incorporation, a Canadian based biopharmaceutical firm, has reportedly joined forces with PharmaChoice, a co-operative firm in Canada encompassing more than 740 member stores that supply herbal cannabis products to over 750 pharmacies across the country. According to sources, the closure of this agreement is still dependent on Health Canada’s approval of medical marijuana distribution through the respected pharmacies.
As per some of the key officials at CanniMed, PharmaChoice has provided an exclusive commitment to the former stating that it would be its only seller of cannabis products. This commitment certainly, is based on CanniMed fulfilling certain product requirements. Early in 2017, CanniMed signed a legal document with PharmaChoice, offering the firm the exclusive distribution rights of its products.
CanniMed’s pact with PharmaChoice came into existence a day after Toronto Stock Exchange informed that it has been considering deferring the stockholder rights plan to protect the hostile acquisition of the former by Aurora Cannabis Incorporation, a major medical cannabis manufacturer & distributor in Canada. According to reliable sources, the rights plan is expected to prohibit Aurora from purchasing any of CanniMed’s shares.
Reliable sources have claimed that CanniMed was the only supplier of cannabis to Health Canada for nearly thirteen years under the earlier medical cannabis system. The firm has apparently been producing the drug for a large patient base across the country with no diversion cases.
As per experts, the agreement between CanniMed and PharmaChoice will help the former expand its customer base. PharmaChoice may also be eligible for a few advantages under the deal – the agreement would help the company to accrue substantial benefits through acquisition of overall product distribution rights. Industry analysts have stated that the strategic deal will raise the brand presence of the firm across the country, given the escalating requirement for marijuana in myriad therapeutic treatments.