TechInvest News

Zelira expands into Germany via exclusive distribution agreement - TechInvest Magazine Online

Written by Staff Writers | Sep 21, 2021 9:00:15 AM

Cannabinoid-based medicines developer Zelira Therapeutics Ltd (ASX:ZLD) is entering one of the world’s largest and fastest growing markets for cannabinoid-based medicines – Germany.

The move comes via a five-year exclusive distribution agreement with IM Cannabis Corp.’s (IMC) German-based subsidiary Adjupharm, a EU GMP-certified medical cannabis distributor.

IMC is a multi-country operator in the medical and adult-use recreational cannabis sector with operations in Canada, Israel and Germany.

 This distribution agreement expands the availability of Zenivol, Zelira’s clinically validated cannabinoid-based insomnia medication, beyond Australia and into Germany.

 This market is set to be one of the largest for global cannabinoid-based medicines. In the first half of 2020, over €75 million worth of medical cannabis products were sold in Germany to an estimated patient population of around 120,000.

Adjupharm will be filing for formal German government reimbursement for its sales of Zenivol. If received, this will be the first time a Zelira Pharmaceutical Rx product will receive formal government reimbursement.

This distribution agreement, the first outside of the US and Australia for Zelira’s growing Pharmaceutical (Rx) products, follows the June 2021 publication of The University of Western Australia research team’s results from its double-blind, placebo controlled, cross-over trial of Zelira’s ZTL-101 (Zenivol®) in chronic insomnia patients in the peer-reviewed journal SLEEP. SLEEP is the official publication of the Sleep Research Society, and the benchmark international journal for all sleep-related conditions.

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.”

Key terms of the distribution agreement include:

  • Commencement date of 17 September 2021, and a term of five years
  • Supply of finished dosages of Zenivol from Australia to Germany
  • Adjupharm will co-brand and exclusively market Zenivol in Germany
  • To retain exclusivity, Adjupharm is required to purchase annual minimum quantities of Zenivol totalling over A$4 million (with A$98k in Year 1)1 for Germany over the five-year term of the distribution agreement
  •  Adjupharm will have the first right of negotiation to market Zenivol in other European countries during the term of the agreement.

https://zeliratx.com/home/