GlaxoSmithKline to commercialise Cann Group cannabis medication

Medicinal cannabis producer Cann Group and global pharmaceutical firm GlaxoSmithKline are progressing negotiations relating to the commercialisation of Cann’s Satipharm CBD capsules.

Cann Group, which operates a major cannabis growing and processing centre at Mildura, Victoria (pictured) announced it was in negotiation with GlaxoSmithKline’s Australian arm Haleon.

The negotiations involve an exclusive agreement covering distribution in Australia and New Zealand markets ‘and potentially other markets globally’ according to an announcement.

Cann Group acquired the Satipharm product through its acquisition of the Satipharm group of companies in 2021.

Manufactured using Satipharm’s Gelpell technology which improves the bioavailability of the product, the capsules are being evaluated for their effect on improving sleep and quality of life in a Phase 3 clinical study.

The results of the study are expected to be known in 2023, with an agreement with one of the world’s top 10 pharmaceutical companies potentially increasing market reach of the Australian made product.

Cann Group said it had signed a non-binding term sheet identifying milestone payments, sales-related payments and manufacturing margins to be paid to the company.

Picture: Cann Group