CALGARY and LAVAL, QC, Oct. 28, 2019 /CNW/ - Sundial Growers Inc. (Nasdaq: SNDL) ("Sundial"), a Canadian licensed producer of cannabis and Crescita Therapeutics Inc. (TSX: CTX) and (OTC US: CRRTF) ("Crescita"), a Canadian commercial dermatology company, today announced a development and licensing agreement (the "Agreement") granting Sundial the worldwide rights to Crescita's proprietary transdermal delivery technologies for the development of topicals containing cannabis and hemp.
The partnership combines Crescita's leading expertise in dermal sciences and in the development of patented topical formulations with Sundial's cannabis production, extraction and commercialization expertise. The Agreement will enable the development of unique, high-quality cannabis and hemp topicals for the Canadian and international non-prescription markets.
"Partnering with a world-class dermatology company like Crescita is a significant step for Sundial as we continue to stay on top of consumer trends in the cannabis industry and prepare for expanded global reach," said Brian Harriman, COO of Sundial. "This partnership is a key component of our international CBD strategy across Canada, Europe, the United States and future jurisdictions, allowing us to provide effective and safe branded products based on differentiated intellectual property ("IP") that consumers can trust."
Pursuant to the Agreement, Crescita will develop formulations for topical cannabis and hemp products using its patented transdermal delivery technologies: Multiplexed Molecular Penetration Enhancers™ ("MMPE") and DuraPeel™ ("DuraPeel"). Based on a study conducted in 2018, MMPE and DuraPeel both showed significantly increased skin absorption of cannabidiol ("CBD") by up to 14- and 6-fold respectively, when compared to the control formulation.
"We are thrilled to establish this important partnership with Sundial, a visionary in crafting premium cannabis brands and a company that shares our passion for innovation," said Serge Verreault, President and CEO of Crescita. "This milestone underscores the strength of our IP and technologies in providing a differentiating factor in the cannabis market and is a step forward in making Crescita a leading dermatology company."
Sundial will fund the development and formulation costs and will have the worldwide marketing and distribution rights for the newly developed products. In addition, Sundial will support Crescita in applying for and obtaining the Health Canada Standard Processing License for Cannabis. Crescita will receive tiered royalties on the net worldwide sales of these products, and retains the right to leverage its IP for future product development under its own brands.
Sundial's partnership with Crescita creates strong synergies across its multiple partnership agreements, including its skin disease and anti-aging patents with PathwayRx. Sundial's initial topical offerings will include a CBD-infused roll-on and topical cream that will utilize the MMPE technology to deliver faster skin penetration without irritation. Both products are expected to be available for purchase in early 2020.
About Sundial Growers Inc.
Sundial proudly crafts pioneering cannabis brands to Heal, Help and Play:
- Heal - cannabis products used as prescription medicine
- Help - cannabis products that strive to promote health and wellness through CBD
- Play - cannabis products to enhance social, spiritual and recreational occasions
Sundial has facilities in Canada and the United Kingdom and provides quality and consistent products consumers can trust.
In Canada, we grow 'craft-at-scale' cannabis using purpose-built modular facilities and award-winning genetics. Sundial's flagship production facility is located in Olds, Alberta with a second facility in Rocky View, Alberta. We have commenced construction of our next purpose-built facility in Merritt, British Columbia.
In the United Kingdom, we grow high-quality traceable plants, including hemp, ornamental flowers and edible herbs, in over 1.5 million square feet of state-of-the-art environmentally friendly, indoor facilities. Bridge Farm has three facilities in Spalding with another currently under construction.
We employ nearly 1,000 employees globally, full-time and seasonal, bringing economic benefits to the local communities in which we operate.
About Crescita Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a publicly traded, Canadian commercial dermatology company with manufacturing capabilities and a portfolio of non-prescription skincare products for the treatment and care of skin conditions, diseases and their symptoms and prescription drug products for the treatment of pain. Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin.
Supported by a sales force covering all of Canada, and executing its business to business to consumer marketing approach, Crescita sells its non-prescription products through spas, medispas and medical clinics.
In addition, our brands and formulations are currently sold in the U.S. and Asian markets through international distributors and through a cross-border e-commerce channel.
Crescita developed a prescription product call Pliaglis® that utilizes our proprietary phase-changing topical cream Peel technology. Pliaglis is a topical local anaesthetic cream that provides safe and effective local dermal analgesia on intact skin prior to superficial dermatological procedures. The product is currently licensed to two pharmaceutical companies.
Crescita also provides contract development and manufacturing services to several local and North American clients. Our contract development and manufacturing organization infrastructure allows Crescita to provide its clients with development and other support activities required to bring their products to market. Crescita has extensive expertise in product formulation and development, leveraging our patented transdermal delivery technologies, and specializes in manufacturing creams, liquids, gels ointments and serums. The Company operates out of a 50,000 square-foot manufacturing facility located in Laval, Québec, and is compliant with current Canadian Good Manufacturing Practices and is regularly inspected by Health Canada.
The MMPE technology uses synergistic combinations of certain pharmaceutical excipients included on the FDA's Inactive Ingredient Guide for improved topical delivery of active pharmaceutical ingredients (APIs) into or through the skin. The benefits of this technology include the potential for increased penetration of APIs with the possibility of improved efficacy, lower API concentration and/or reduced dosing. Issued U.S. patents provide intellectual property protection through March 6, 2027.
The DuraPeel technology is a self-occluding, film-forming cream/gel formulation that provides extended release delivery to the site of application. The cream/gel contains a drug applied to a patient's skin forming a pliable layer that releases drug into the skin for up to 12 hours. The benefits of the DuraPeel technology include proven compatibility with a variety of active pharmaceutical ingredients ("APIs"). A self-occluding film reduces product transference risk, provides fast drying time, facilitates easy application and removal, and enables application to large and irregular skin surfaces. Patents have been issued in Australia, Canada, Japan and the U.S. with the latest expiry in 2027. The European patent application is still pending.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law (collectively, "forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plans", "expects", "does not expect", "goals", "seek", "strategy", "future", "estimates", "intends", "anticipates", "does not anticipate", "projected", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "should", "might", "likely", "occur", "be achieved" or "continue" and similar expressions identify forward-looking statements. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking statements. The forward-looking statements in this news release include, without limitation, statements regarding the Agreement, the formulations and products to be developed thereunder, receipt of required regulatory approvals and licenses, future product sales and royalties, and the prospects of the partnership between Crescita and Sundial.
Forward-looking statements are not historical facts but instead represent the expectations, estimates and projections regarding future events or circumstances of Crescita's management. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond Crescita's control. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by Crescita's management as of the date of this news release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Material factors and assumptions used to develop the forward-looking statements, and material risk factors that could cause actual results to differ materially from the forward-looking statements, include but are not limited to changes in the business or affairs of Crescita, competitive factors in the industries in which Crescita operates; relationships with customers and suppliers; changes in legal and regulatory requirements; prevailing economic conditions; and other factors, many of which are beyond the control of Crescita. Additional factors that could cause actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included and described in Crescita's most recent reports and disclosure documents filed with applicable securities regulatory authorities. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved.
All forward-looking statements are based only on information currently available to Crescita, and are made as of the date of this news release. Except as expressly required by applicable securities law, Crescita assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this news release are qualified by these cautionary statements.
SOURCE Crescita Therapeutics Inc.