Medlab (ASX: MDC) is a biotech company with a portfolio of novel medicinal candidates enhanced by its delivery platform and used for the treatment of chronic pain and disease. The firm announced that it has entered into an exclusive non-binding Heads of Agreement (HoA) with Australia’s largest generic pharmaceutical and over the counter (OTC) medicines company, Arrotex Australia Group Australia Pty Ltd. The agreement will enable the development and distribution of NanoCBD to Australian pharmacies.
The HoA is the first partnership between a pharma and a biotech investigating medical cannabis in Australia. The cannabis market is very hot right now and there are quite a few opportunities that are popping up for the top ASX cannabis stocks. This partnership sets Medlab apart in a market that is adjusting to new opportunities presented by over the counter (OTC) sales of eligible TGA approved medicines. The HoA will enable a faster development for the clinical package that is required for the final lodgement of an application to the TGA .
The definitive agreement including commercial terms will be finalised on or before 1 July 2021. Following the announcement, MDC shares moved up on the ASX and were trading at A$0.340 up by 4.615% at AEDT 12:15 PM.
Arrotex is Australia’s largest generic pharmaceutical and private label over the counter (OTC) medicines company with extensive experience in the TGA application process. Supported by the largest sales force in the Australian pharmaceutical industry, the company supplies the medicines which make up 85% of all prescriptions written by Australian doctors and found in every Australian pharmacy. This makes them an ideal partner for Medlab to distribute NanoCBD to Australian pharmacies.
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