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Zelira Therapeutics expands into large German market via exclusive cannabis distribution agreement

Last updated: 10:56 20 Sep 2021 AEST, First published: 10:30 20 Sep 2021 AEST

Zelira Therapeutics Ltd - Zelira Therapeutics Ltd opens new European market via exclusive cannabis distribution agreement

Zelira Therapeutics Ltd (ASX:ZLD, OTCQB:ZLDAF) has expanded into Europe via the large and growing German cannabinoid-based medicines market through an exclusive distribution agreement with Adjupharm GmbH, a German subsidiary of IM Cannabis Corp (CSE:IMCC).

The five-year agreement marks the first time ZLD has expanded its cannabis interests outside of the Australian and US markets, with minimum order quantities totalling over A$4 million, with A$98,000 guaranteed within the first year.

This deal grants Adjupharm first rights to distribute Zelira’s Rx products including flagship product Zenivol® in Germany. It also gives Adjupharm a first right to negotiate other European markets.

Shares higher

Investors have responded positively with shares 10.81% higher in the first hour of trading to A$0.041.

Zelira is a leading therapeutic medicinal cannabis company with a growing portfolio of proprietary revenue-generating products and a focus on developing branded cannabis products through a pipeline of candidates undergoing clinical development. It has had a heavy focus on expanding its market share recently.

The German market is one of the world’s fastest-growing, and certainly the largest in Europe for cannabinoid-based medicine.

This partnership with Adjupharm, and through them, a growing global distributor of cannabis Rx products, IM Cannabis Corp (CSE:IMCC), will allow Zelira to continue expanding its market share and capitalise on the momentum gained last financial quarter.

Read: Zelira Therapeutics closes out FY21 with record cash receipts ahead of product launches

Key growth milestone met

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 is the first distribution agreement for one of Zelira’s Rx products outside of the US and Australia, and further validates the pharmaceutical quality of our Australian production capabilities, and the safety and efficacy of our clinically validated cannabinoid-based medicines.”

The distribution agreement succeeds a year of commercial expansion as set out in Zelira’s commercialisation plans, the first of a number of new therapeutic cannabinoid-based products expected over FY22.

Read: Zelira Therapeutics' commercialisation program to see launch of suite of new cannabinoid-based products over FY22

Research reinforces commercialisation program

The agreement follows a June 2021 publication of research undertaken by the University of Western Australia’s research team in the peer-reviewed journal SLEEP®. The double-blind, placebo-controlled, cross-over trial of Zelira’s ZTL-101 (Zenivol®) in chronic insomnia patients was the world’s first clinically validated cannabis formulation for treating insomnia when first announced.

Adjupharm GmbH chief executive officer Richard Balla said, “Adjupharm has more than 30 years of experience in the production, packaging, storage and logistics of pharmaceuticals and dietary supplements.

"Since 2018, we have been focusing on medical cannabis and delivering high-quality products to pharmacies and pharmaceutical wholesalers in Germany and across Europe.

“We see tremendous opportunity for Zelira’s clinically validated cannabinoid-based insomnia medication, Zenivol®.

"The positive results published in SLEEP® from the University of Western Australia’s clinical trial will underpin patient and pharmacy interest in the product as we distribute it through pharmacies and pharmacy wholesalers in Germany.”

Adjupharm will file for formal government reimbursement for its sales of Zenivol® which – if successful – will be the first formal government reimbursement received for the distribution of Zelira Pharmaceutical Rx products.

Ultimately, the distribution agreement is a foundational step that will allow Zelira to further grow its market share within Europe.

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