Australia’s Bod Science Limited (ASX:BOD) has announced a significant medicinal cannabis collaboration with Antah Group, one of Malaysia’s largest investment holding companies.
Malaysia is well-known for its tough stance on marijuana and those found guilty of trafficking more than 200 grams of cannabis can face a death sentence. Attitudes are changing however – under reforms passed last month, the death penalty is no longer mandatory and there’s a push to decriminalise possession and use of small amounts of cannabis and other drugs.
In terms of medicinal cannabis, Malaysia still has a long way to go – it has yet to conduct clinical trials or explore the use of medical cannabis in healthcare. But cannabinoid companies are keeping a close eye on potential opportunities in the country and among the firms is Bod Science.
Under the non-binding Letter of Intent (LOI), Bod and Antah will work together to explore the potential of medical cannabis therapy in Malaysia once a legal, regulated market becomes established. The collaboration will include evidence-based clinical trials and pursue CBD product registration in the country.
While the LOI establishes the collaborative framework, a formal agreement yet to be developed will firm up the rights and obligations of the parties involved.
Under such an agreement, Bod will supply the investigational cannabidiol (CBD) based medical products for clinical trials, and the cost will be reimbursed to Bod based on prices mutually agreed by the two parties. If the trials meet their objectives, Bod will supply the clinical trial product to Antah for commercialization at a fair market price. Antah will hold exclusive marketing, distribution, and sales rights for Bod’s products in Malaysia.
CEO Jo Patterson expressed her enthusiasm concerning the collaboration, highlighting the value opportunity it presents for Bod. Ms. Patterson said the partnership will enable Bod to lead the exploration of medical cannabis in Malaysia’s healthcare industry alongside one of the country’s largest companies.
“The addressable market in Malaysia is large and we look forward to a mutually rewarding and longstanding relationship with Antah,” said Ms. Patterson.
Bod Australia changed its name to Bod Science Limited in December last year following shareholder approval received at its Annual General Meeting held on 28 November 2022.
