Neuraxpharm and Panaxia (TASE: PNAX) are collaborating again to sell medical cannabis in new European territory.
On Thursday, the companies announced that they had signed two addendums to their agreement enabling expansion of their operations into the Swiss and Czech markets.
The news follows a previous collaboration between Panaxia and Neuraxpharm in Germany and France at the end of last year and the companies will be joint branding in the Czech Republic and Switzerland like they did there with the Naxiva Panaxol brand.
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The collaboration model for the companies will involve Panaxia managing the manufacturing of products such as medical cannabis oils and extracts designed for inhalation while Neuraxpharm handles marketing, distribution and commercialization of the merchandise in the Swiss and Czech domain.
“We are proud to expand our collaboration with our partner, Neuraxpharm, to the Czech Republic and Switzerland, two of the most advanced countries in Europe in terms of their medical cannabis policy. We are excited to make our advanced medical cannabis products available to patients in both countries and expand the variety of products offered,” said Dadi Segal, CEO of Panaxia.
The companies say the addendums to the agreement will enhance their positions as key players in the European medical cannabis market and they plan to expand into other countries as well.
“We are delighted about the new agreement with Panaxia, which is a great opportunity to benefit from the strong growth in the Swiss and Czech medical cannabis markets. We are confident that with our partner Panaxia we will be able to successfully leverage the potential of both markets going forward,” added Dr. Jörg-Thomas Dierks, CEO of Neuraxpharm.
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According to a report from the Czech State Agency for Medical Cannabis (SAKL), the rate of prescriptions for medical pot given in the Czech Republic increased by 37 per cent between 2020 and 2021.
Panaxia and Neuraxpharm also mention that patients have been able to receive a prescription for medical cannabis in Switzerland without the need for a special license since August, which is expected to add thousands of consumers to the medical cannabis market there going forward through easier access.
The first products are anticipated to be sold in Switzerland and the Czech Republic by the end of 2022 pending regulatory approvals from authorities in those countries.
Panaxia is an Israeli pharmaceutical company that owns two EU-GMP certified facilities in Israel and Malta for the production of medical cannabis.
Neuraxpharm is a European pharmaceutical company with operations in 19 countries that primarily focuses on treating central nervous system (CNS) disorders. The company says it sells its products in over 50 countries.
Panaxia stock dropped by 0.8 per cent today on the Tel Aviv Stock Exchange.
