Australia’s Creso Pharma Limited (ASX:CPH) has inked a distribution agreement that will see its products appear in Pakistan, the Philippines and other countries.
The deal was made with Pakistan-based Route2 Pharm Pvt Ltd, which will import, market, distribute and sell Creso’s hemp derived therapeutic products in the two countries under an exclusive arrangement, and non-exclusively in potential markets including Cambodia, Vietnam, Uzbekistan and others.
“This Agreement has the potential to take Creso into markets with a combined population of over 750 million people,” said the company’s non-executive Chairman Adam Blumenthal.
The first contractual year minimum order value for various cannaQIX and cannaDOL products in Pakistan and the Philippines is put at AUD $2,482,037. Minimum order quantities will only become applicable three months after each product is registered in each country. Minimum sales targets will be negotiated for the second and third years.
In other recent new from the company, Creso announced last week it has taken over the marketing and sales of its cannaQIX product line in Switzerland, activities previously outsourced to Doetsch Grether over the last 3 years. This has occurred in order to improve Creso’s profit margins and set the stage for further product extensions and new product launches.
“While we are thankful of having benefitted from our partnership with Doetsch Grether, our direct sales model will give Creso the opportunity to expand its profit margins as it enters a new phase of growth,” said Creso Commercial Director Dr. Gian Trepp.
Closer to home, in recent months Creso Pharma has made it very clear it wants a big chunk of the local cannabidiol market pie after Australia’s Therapeutic Goods Administration (TGA) down-scheduled certain CBD preparations to Pharmacist Only Medicines (Schedule 3). Qualifying CBD products can now be sold in Australia, but there aren’t any such products available yet.
Creso Pharma is collaborating with Martin & Pleasance to progress potential regulatory pathways for low-dose CBD products. It already has CBD products being actively sold in several countries, with its CannaQIX 50 already available in Australia under the Lozacan brand – but via prescription.