Zelira Therapeutics Ltd (ASX:ZLD) has successfully demonstrated enhanced dissolution of cannabinoids using its enhanced distillate capture and dissolution matrix (EDCDM), and signed a foundation licensing deal for this proprietary technology that includes an upfront non-refundable, non-contingent licensing fee of US$1 million.
According to Zelira management, up until now, the market has had difficulty in formulating and developing free flow solid oral dosage forms based on cannabinoid distillate.
This is due to the non-uniformity of cannabinoid distillate and its separation from the powder bed. EDCDM technology, developed by Zelira, resolves this problem by creating the capacity to capture distillate in a unique and proprietary matrix. When combined with the cannabinoid distillate, it creates a free-flowing powder base for capsules and tablets.
This novel matrix absorbs the distillate into a nano porous silicate particle where the distillate is effectively trapped in the structure of the silicate rendering the powder bed dry. As a result, this prevents the distillate from separating from the powder bed during encapsulation and under the compression forces utilised in tableting.
Comparative analytical testing results demonstrated the efficacy of Zelira’s proprietary EDCDM technology in substantially improving average dissolution of cannabinoid capsules with EDCDM technology relative to cannabinoid capsules without the EDCDM technology.
Rapid commercialisation opportunities
The enhanced dissolution characteristics of Zelira’s EDCDM technology provides an opportunity for rapid commercialisation opportunities. A licensing agreement has already been signed with DRCN Holdings to develop products underpinned by Zelira’s EDCDM.
About DRCN Holdings
DRCN Holdings LLC (DRCN) is a privately held, vertically integrated parent company with controlling interest in several West Virginian cannabis companies and affiliate cannabis entities in Maryland, Michigan and Pennsylvania.
These States have approved legal medical cannabis programs with additional focus on research, development, manufacturing, agricultural genetics, and human clinical trials for cannabinoid-based, FDA approved, prescription medications.
DRCN is led by experienced industry experts, Reggie Alston and Neil Cooper, with experience in medical cannabis products, growing, manufacturing, processing and dispensary operations as well as research, development, and technology improvements.
Licensing agreement with DRCN Holdings Key terms of the licensing agreement include:
- Zelira to receive an upfront, non-refundable, non-contingent licensing fee of US$1 million from DRCN Holdings
- DRCN Holdings has an option to designate up to three product target profiles for Zelira to develop products for
- three year period to exercise product development options, with a possible two-year extension
- Products must generate a minimum of US$1 million in Net Sales each year after commercialisation, otherwise, either party has right to cancel license
- Zelira to receive a 20% royalty on Net Sales from commercialised products created under the license
We strongly believe that the cannabinoid-based medicine market will scale up significantly when the ability to consistently formulate, validate and commercialise dosage forms that closely resemble current pharmaceutical drugs and in formats such as capsules and tablets, becomes available,” Zelira Therapeutics Global Managing Director and CEO, Oludare Odumosu, said.
“Reflecting Zelira’s biopharmaceutical business strategy, we have solved two key issues holding back wider acceptance and usage of cannabinoid medicinal products – the difficulty in formulating solid oral dosage drugs with distillate, and the low rate of dissolution into the body from capsules and tablets. We have now demonstrated that Zelira’s proprietary Enhanced Distillate Capture and Dissolution Matrix technology substantially traps the distillate in a free flow powder matrix and increases the rate of dissolution.
“This is a very exciting development as it opens multiple product development and commercialisation paths for medicinal cannabinoids. The licensing arrangement with DRCN Holdings reflects the substantial and immediate value of Zelira’s technology given the multiple products that can now be commercialised. We look forward to partnering with DRCN Holdings to bring new products to market that enhance peoples’ lives.
“ The success of Zelira’s EDCDM, and results showing its efficacy, reinforce Zelira’s commitment to world-class science and position as a global biopharmaceutical leader in the development and marketing of clinically validated cannabinoid-based medicines.
“We have only just started to explore the breadth and depth of Zelira’s biopharmaceutical technologies and products in development that we will bring to market soon.
“Receipt of the upfront, non-refundable, non-contingent fee under this transaction, will further strengthen Zelira’s cash position. This puts the company in an increased strong position to continue to accelerate both our prescription (Rx) and Over The Counter (OTC) businesses/strategies.”
