Aimimg higher: Tilray to partner with Swiss drug giant Sandoz to boost global sales,
Move could allow B.C. pot firm to capture early share in new medical cannabis markets
KRISTINE OWRAM Tilray Inc. has signed a global partnership with a division of Swiss drug giant Novartis AG to develop and distribute its medical marijuana in legal jurisdictions around the world.
The Canadian pot firm said Tuesday it’s reached an agreement with Sandoz AG to boost the availability of medical cannabis products globally, building on an existing alliance with Sandoz Canada Inc. The two companies will work together to commercialize Tilray’s non-smokable medical marijuana offerings, co-brand certain products, develop new products and educate pharmacists and physicians about pot.
Tilray jumped 12 per cent in New York to $73.70 (U.S.). Novartis fell1.3 per cent in Switzerland.
“It just made sense for us to reach an agreement with a company like Sandoz, which is known for its focus on patients, its reliable supply chain, a well- established sales force and a global distribution network,” Tilray chief executive officer Brendan Kennedy said in a phone interview. “If a product comes into a pharmacy with the Sandoz logo co-branded on it, or if a pharmaceutical sales rep is talking to a physician about a product that’s branded as Tilray and Sandoz, it lends credibility to that product.”
The partnership will also allow Tilray to “capture early share in new medical cannabis markets as they come online,” Cowen analyst Vivien Azer wrote in a note, adding that it should boost the pot company’s top and bottom lines. “While we would continue to expect Tilray to have some of its own feet on the ground, the Sandoz expansion allows Tilray to invest more modestly and leverage Sandoz’s scale.”
Nanaimo, B.C.-based Tilray and Sandoz Canada have been working together since March, when they announced an alliance to develop new medical cannabis products and collaborate on research and education. The companies also cobranded eight oil and capsule medical cannabis products and are joint members of the Common Initiative, a group that’s urging Canada to allow distribution of medical pot in pharmacies.
The partnership with Sandoz Canada “has been successful,” Kennedy said. “It’s been a very good experience, their team and their culture matches well with ours, we share similar values and visions for the future of the medical cannabis industry.”