Cannbit-Tikun Olam (TASE:TKUN) will produce various medical cannabis products for Teva Israel, a marketing arm of Teva Pharmaceuticals (NYSE:TEVA).
What Happened
The Tel Aviv, Israel-based cannabis company confirmed Monday it has signed a collaboration agreement with Teva, under which it will manufacture THC and CBD-rich oils for Teva.
Why It Matters
Under the deal, the products will be exclusively marketed and distributed by Teva in Israel and the Palestinian Authority. The oils are based on strains developed by Cannbit-Tikun Olam and selected exclusively by Teva due to their safety profile and strong therapeutic efficacy.
What's Next
In the future, and to the extent possible, the cannabis oils will also be marketed by Teva in Ukraine, where the government is currently developing regulations.
Under the agreement and subject to various regulatory approvals, the companies will collaborate for the extended period of 10 years, which they will also be able to extend by another nine years.
"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,” Yossi Ofek, CEO of Teva Israel stated. “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 unmet medical needs of patients.
"We decided to join forces with Cannbit-Tikun Olam following an in-depth and lengthy review 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."
Photo: Courtesy of CRYSTALWEED cannabis on Unsplash
