Tetra Bio-Pharma Inc. (TSX: TBP) (OTCQB: TBPMF) (FRA:JAM1) is teaming up with Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) to bring Tetra’s products to Latin America.
On Monday, the Ottawa-based cannabinoid-based drug developer revealed a non-binding term sheet with Avicanna consisting of three strategic areas.
The first involves registration and commercialization of Tetra’s cannabinoid-based prescription products through Avicanna’s sales channels in Latin America. The second offers co-development and support for Avicanna’s pharmaceutical pipeline via level clinical development and registration with Canadian regulatory authorities.
The partnership also involves a supply of Avicanna’s active pharmaceutical ingredients (APIs) for Tetra’s pharmaceutical pipeline.
In a statement, Tetra chief commercial officer Steeve Neron says his firm will need multiple reliable suppliers of APIs to support operations related to its painkiller QIXLEEF, which has a fixed ratio of THC and CBD that complies with United States cGMP regulations.
“QIXLEEF is Tetra’s proprietary investigational new drug and is currently being evaluated in two U.S. FDA-authorized clinical trials,” Neron explains.
Avicanna’s established distribution channels in Latin America could help advance Tetra’s product commercialization in select jurisdictions, he adds.
Other Tetra products set for commercialization include anti-nausea, cannabinoid-based drug REDUVO, bio-delivery technology AdVersa and painkiller CAUMZ.
Read more: Avicanna reports record $1M in sales
Read more: Avicanna subsidiary gets GACP certification in Colombia
Avicanna CEO Aras Azadian says Tetra has proven to be a pioneer in cannabinoid-based pharmaceuticals.
“As the global industry continues to mature and shift its focus towards evidence-based medicines, the two companies are well-positioned to work in synergy across several projects and leverage their leadership positions into fruitful commercial results.”
Under the Aureus brand, Avicanna sells raw material to 12 countries and offers seeds, flower, full-spectrum extracts and other isolated cannabinoids like CBD.
The products come from its Colombian majority-owned subsidiary Santa Marta Golden Hemp S.A.S, which is GACP-certified and has USDA National Organic Program certification for its hemp cultivar.
The company also has patent-pending drug candidates that are in various stages of clinical development and commercialization.
Its RHO Phyto brand includes medical and wellness products with different ratios of CBD and THC in varying forms such as creams, pills and transdermal patches.
Follow Natalia Buendia Calvillo on Twitter