Company enters a multi-year agreement with Colombia-based Procaps to conduct advanced manufacturing in Latin America
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SMITHS FALLS, ON— Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED, NYSE:CGC) is pleased to highlight recent developments that are fueling its international progress in emerging medical cannabis and CBD markets. The Company’s global three-prong strategy includes a focus on building best-in-class global GMP (Good Manufacturing Practices) infrastructure, advancing clinical research programs and best-in-class education and sales programs through its Spectrum Therapeutics medical division, and launching CBD products where regulatory environments allow. Recent highlights include:
Furthering access to these new markets, Canopy Growth has entered into a multi-year agreement with Procaps S.A.S (“Procaps”), a global company based in Colombia. Procaps develops, manufactures, and markets over-the-counter medications and nutritional supplements for a number of international pharmaceutical companies. Procaps exports to more than 50 international markets, including highly regulated jurisdictions such as the United States, where they are GMP certified by the US Food and Drug Administration (“US-FDA”). Through the agreement, Canopy Growth will leverage Procaps’ industry-leading formulation and encapsulation capacity, which is especially critical in serving Latin American markets where there is a strong regulatory preference for oil-based products, including softgels. The agreement covers a number of different product formats.
In Colombia, Canopy Growth is licensed to produce over 13.6 million sq. ft. of THC or CBD dominant cannabis, making its Neiva license one of the largest in the world and positioning the Company to meet the emerging regional demand for medical cannabis and CBD products. While only a portion of the cultivation area is in use, the Company will scale operations as market demand dictates. The Company has also completed compassionate sales of Canadian-produced Spectrum Therapeutics products to both Chilean and Brazilian patients, validating the potential of serving patients through an import model while its Latin America operations scale and regional regulations advance to support greater market access.
In Australia, Spectrum Therapeutics received its first shipment of medical cannabis oil in April 2019 and shortly thereafter began sales to medical cannabis patients in May 2019. The medical market is expanding in Australia as regulations mature and patients have greater access to medical cannabis. Country-wide patient registrations have increased tenfold over the last year to more than 1,300 today. Spectrum Therapeutics intends to support Australian patients through imports until its domestic facilities are fully operational. Construction of its Victoria-based greenhouse and post-production facility is currently underway.
In Denmark, Spectrum Therapeutics received the necessary licensing from the Danish Medicines Agency for its Odense facility, allowing the Company to grow, harvest, export and sell medical cannabis in dried flower form. To its knowledge, Spectrum Therapeutics is the first Canadian company to receive a federal production licence in Denmark. The facility, certified in both Good Agricultural and Collection Practices (GACP) as well as GMP designations, is the backbone of the Company’s regional supply chain and will support the growing demand for Spectrum Therapeutics products across Europe. Additionally, following its acquisition of a licence to grow and produce cannabis in Spain, the Company is actively developing plans for its second site in Europe.
The Company also continues to integrate the recent strategic acquisitions of German-based Storz & Bickel, a global leader in medical device and vaporizer technology, German-based C3 Cannabinoid Compound Company, a leading European producer of Dronabinol, and UK-based ThisWorks. Integration of these global leaders into the Canopy product offering and global sales structure will increase revenues, accelerate intellectual property development, and further advance and expand clinical research.
In Lesotho, Spectrum Therapeutics has been granted a medical production licence covering two facilities in the country, including 21 million sq. ft. of outdoor grow space and 322,000 sq. ft. of indoor, outdoor and greenhouse space combined, respectively, where CBD dominant and CBD-THC balanced varieties can be cultivated. With these licensed areas, Spectrum Therapeutics to its knowledge now owns one of the largest legal outdoor CBD cultivation sites on the continent of Africa, some of which is currently operational.
Spectrum Therapeutics has also acquired 12 hectares of land located in the Atlantis Economic Zone in the city of Cape Town in order to establish licensed production operations in South Africa. The Company has submitted the necessary applications for a cultivation and post-harvest processing facility licence, which will complement its current production capabilities in Lesotho.
For years, Canopy Growth has taken the long-view, leveraging its substantial cash position to lay the foundation for a global, revenue-generating network. These latest milestones, from world-wide land acquisitions and partnerships, facility developments, licence accreditations, crop cultivation – and sales – validate the Company’s efforts and strategic investments, strengthening its position as the global leader, poised to capitalize on emerging markets.
Wondering about North America? Stay tuned for further updates in the coming days.
Here’s to Future Growth (on the global stage).
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