Creso Pharma takes its cannabis products to the Scandinavian market
4 March 2020, Written by Jonathan Jackson
The following article is sponsored content in partnership with Finfeed. Business News Australia does not give financial advice.
Cannabis has a place in global economies, but it seems the companies that will survive will be the ones who have a solid product offering that benefits consumers and therefore has a positive impact for investors.
One of these companies is Australian listed Creso Pharma (ASX: CPH).
Creso's aims to become the world's most trusted supplier of cannabis and hemp derived products and the company's experienced pharmaceutical leadership team has an unparalleled track record of success commercialising a wide range of pharmaceutical and therapeutic solutions.
Creso delivers products with standardized dosing and formulations through the application of pharmaceutical rigor, Good Manufacturing Practices (GMP) standards when appropriate and proprietary, innovative delivery technologies.
The company is not limited by any single market and can therefore offer a diverse portfolio of solutions to the widest possible population.
Today, its commitment to bring to market products that make a difference in the lives of humans and animals has extended into the Scandinavian market.
These are products that help manage pain, stress and anxiety and their importance shouldn't be underestimated by investors or the broader public.
Creso products to be sold in Norway
Creso Pharma has signed a commercial term sheet agreement with Farmagon, Oslo, Norway to enter the Scandinavia market with Creso products.
Farmagon is an established wholesale distributor in Norway, with over 25 years of experience in pharma in Scandinavia.
Through this partnership, Creso expects to leverage Farmagon's licences, deep industry know-how and active retailer distribution channels to bring in-demand medical cannabis products to Scandinavia and surrounding markets.
Under the agreement, Farmagon has the right to commercialise Creso's products under co-branding with Creso, or white labelling in the defined territory, subject to prescribed minimum order quantities.
The first phase of the commercial roll out will be the focused on the launching of cannaQIX® 50 and cannaQIX® 10, both of which will be marketed as medicinal cannabis products under a required narcotics licence.
Supply chain advantages
In managing the sales operations, all aspects of the supply chain from medical professionals to shopfront and online distributors are in place.
The sales channels will comprise doctors across a range of disciplines including alternative medicine, oncologists, neurologists and pain management doctors.
In terms of the group's sales strategy, distribution to retail, pharmacies, drugstores, grocery shops and online is being coordinated.
The agreement covers Norway as a commercial gateway as well as Denmark, Sweden and Finland, and can be terminated by either party giving 3 months' notice.
Highlighting Scandinavia's high-profile position in terms of science-based products, Creso Pharma's chief executive and co-founder Dr. Miri Halperin Wernli said, "We are excited to enter the Scandinavian markets with our products.
''Besides being an attractive market, this will bring excellent opportunities as Scandinavia is a top-quality reference for marketing science-based products.
Farmagon brings a wealth of experience to the table having operated for decades in the pharmaceutical space, whereby it now benefits from long-standing strong relationships across the supply chain, including an active retailer distribution network across the region.
There are also obvious benefits that will flow from the group being an authorised wholesale organisation with narcotics licences for healthcare products for humans and animals in place.
Chief executive and founder of Farmagon John Schnell said, "We look forward to working together with Creso Pharma to realise this exciting opportunity."Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Jonathan Jackson