Creso Pharma set for big 2020 with pharmaceutical cannabis expansion
As the global cannabis market is expected to reach US$272 billion within the decade, Creso Pharma (NSW, Australia) has established itself as an early mover within the medicinal cannabis sector.
The legal cannabis market is forecast to reach US$148 billion by 2026, with Barclays’ European Consumer Staples Report predicting the global cannabis market will reach US$272 billion by 2028.
Surprisingly, despite still stringent legislation, the Australian legal cannabis market is also experiencing heightened activity.
Australia’s Office of Drug Control has so far issued 69 licences to cultivate, produce or manufacture medicinal cannabis.
- 24 licences for cultivation of cannabis for medicinal use,
- 16 for cultivation for research, and
- 23 for manufacture of medicinal cannabis products.
Creso Pharma (NSW, Australia) has established itself in this market as an early mover within the medicinal cannabis sector. Its focus: high-margin pharmaceutical-grade cannabis products in human and animal health.
As a global entity, Creso represents an early entry point for investors to dip their toes in the global legal cannabis market.
The company has a diverse product portfolio of cannabis and hemp-derived products, focused on four key areas: therapeutics, nutraceuticals, animal health and cosmetics.
Since 2016, it has been committed to building a business rather than riding a trend –albeit a potentially lucrative one.
Within this environment, Creso is aggressively pursuing the launch of nine pharmaceutical-grade products, along with key certifications and strategic partnerships that will accelerate revenue growth.
Creso has already launched four sales generating products across the cosmetics, animal health, nutraceuticals and therapeutics verticals.
The company expects its growth plans to be supported by funding measures, revenue increases and cost-management initiatives.
While its operations continue to move from strength to strength, it hasn’t all been smooth sailing for the company in 2019.
A failed takeover bid by PharmaCielo (ON, Canada), which targeted Creso for the breadth and strength of its current portfolio, rocked its share price.
The bid valued Creso at AU$122 million; the deal fell through in November, due to a softening in the broader medicinal cannabis market.
It did, however, highlight the potential investment opportunity in the ASX listed, Australian company.
The proposed takeover valued Creso at AU$0.63 per share. The most recent placement was conducted at AU$0.19 per share – the takeover price representing a 230% premium.
Creso’s strengths are emphasized by its year-on-year revenue growth, providing a sound base as new products are brought to market.
The company recently launched its cannaQIX® range in Africa, in conjunction with Pharma Dynamics (Cape Town, South Africa), a subsidiary of Lupin Limited (Mumbai, India). Initial orders worth approximately AU$300,000 for the cannaQIX® product range have been made and Creso anticipates the products will be available in South Africa in Q1 2020.
In animal health, Creso's partner Virbac (Suffolk, UK) is introducing the two initial anibidiol® products into further countries in Europe and will be launching Creso Pharma's new animal health products in the near future.
For both human and animal health, Creso has initiated its reach into North America, where it is in discussions with a number of potential partners to introduce all 13 products, human and animal, into selected US states.
Products are made with standardized dosing and formulations through the application of pharmaceutical rigor, Good Manufacturing Practices (GMP) standards and proprietary, innovative delivery technologies.
In addition, they carry the well-known ‘Swiss Made’ label that is synonymous with premium-quality products.
The Swiss connection is significant as Swiss-based CEO of Cresco, Miri Halperin Wernli, is a well-regarded senior pharma executive with over 25 years of strategic and operational leadership in global drug and product development in the pharmaceutical and biomedical industries.
Creso believes the value of its fundamental operations continues to grow, supported by the company’s portfolio of products, established operations, corporate interest and global market opportunities.
To learn more about Creso Pharma visit The Next Biotech.