Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) unit Teva Israel has signed its first commercial agreement for the marketing and distribution of medical cannabis oil. Teva Israel signed the agreement with Israeli company Tikun Olam-Cannbit Pharmaceuticals Ltd. (TASE: TKUN) for the exclusive marketing and distribution of the products in Israel.
Teva Israel said that Tikun Olam-Cannbit Pharmaceuticals will extract the THC and CBD oils from the researched Cannbit’s strains, in accordance with Teva’s guidelines and strict standards. The products will then be marketed by Teva Israel to patients throughout the country including the Palestinian Authority. In the future, products will also be marketed and distributed in Ukraine, subject to the opening of that market
Teva Israel CEO Yossi Ofek said, "The medical cannabis arena is developing and being professionalized at a dizzying pace in Israel, and there is more openness to it in Israel and worldwide. Today, it is clear to many in the pharmaceutical industry and in the medical community that use of oils produced from specific cannabis strains may provide additional treatment options and respond to unaddressed medical needs of patients.
He added, "We decided to join forces with Cannbit-Tikun Olam following an in-depth and lengthy review of all the players in the market in Israel, and I have no doubt that the medical cannabis oils Cannbit-Tikun Olam produces - according to Teva's high quality and safety standards - will help us realize our goal of improving the lives of patients."
Tikun Olam-Cannbit Pharmaceuticals general manager Avinoam Sapir said, "I believe that this is one of the most important agreements concluded in the industry in recent years in Israel and that it will position Cannbit-Tikun Olam and Teva Israel as leading players in the ever-growing and developing medical cannabis market in Israel and worldwide. I am glad to return and cooperate with one of the leading players in the pharma industry, and to penetrate later - if the regulatory environment allows it - also to Ukraine, where Teva is a market leader."
As part of the agreement and subject to Teva Israel receiving all the required regulatory approvals, the companies will collaborate for 10 years, with an option to extend the agreement for another 9 years.
In addition to the agreement with Teva, Cannbit-Tikun Olam has also recently signed an agreement with Solgar-SupHerb to produce cannabis-based nutritional supplements, and with Wavelength, which develops and produces active pharmaceutical ingredients for the pharmaceutical industry. Cannbit-Tikun Olam also has an agreement with cosmetics company, AHAVA, for the development of products based on Dead Sea minerals along with CBD, and on a joint CBD brand with Meditrend and Diplomat, an agreement for work in the UK with ITH Pharma, and with German company Fette Pharma.
Published by Globes, Israel business news - en.globes.co.il - on December 27, 2021.
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