The cannabis producer confirmed a new partnership with Sandoz for the potential development of new medical cannabis products.
In another step of major industries moving into the cannabis space, generic pharmaceutical company Sandoz will now collaborate with Canadian licensed producer (LP) Tilray (NASDAQ:TLRY) for medical cannabis products.
“Sandoz AG will be a valuable partner as we work together to improve access to the highest quality medical cannabis products in countries all over the world,” said Brendan Kennedy, CEO of Tilray.
Tilray already formed a relationship with the pharmaceutical world in March, when the cannabis venture announced an exclusive collaboration with Sandoz Canada, an affiliate of Sandoz International.
This is the next step between Tilray and the Canadian division of Sandoz, which itself is part of the Novartis (NYSE:NVS) group.
As part of the collaboration, the two companies could work together to commercialize non-smokable medical cannabis products. Sandoz may also participate in co-branding these products.
Through the deal, Sandoz can obtain medical cannabis products or access to Tilray’s license rights and may participate in the development of new products.
“Both companies may also partner to leverage best-in-class knowledge to educate pharmacists and physicians about medical cannabis products,” Tilray added.
Shares of Tilray shot up 16.1 percent in Tuesday’s trading session, while during after-hours trading the company was up just over 1 percent. Tilray closed at US$76.50.
The pharmaceutical industry has been at the forefront of markets predicted to be interested in partnerships in the cannabis space due to the medical aspect.
Dena Jalbert, founder and CEO of Align Business Advisory Services, previously told the Investing News Network that she expects more deals where a larger player steps into cannabis to be based on intellectual property rather than a full buyout.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.