In another move toward a significantly increased international presence, Canopy Growth Corporation (TSX:WEED; NYSE:CGC) today announced the acquisition of German pharmaceutical manufacturer C3 Cannabinoid Compound Company.
C3 was originally founded by German herbal medicine company Bionorica SE, which provides herbal supplements such as Sinupret for sinus health and Canephrone for urinary tract infections.
The terms of the all-cash deal see Canopy acquiring C3 from Bionorica SE for 225.9 million Euro (approximately C$342.9 million).
In addition to C3’s intellectual property revolving around two decades of research into both natural grown and synthesized cannabis, the acquisition provides Canopy with the ability to manufacture and distribute dronabinol.
Sold under a variety of brand names, dronabinol is a registered pharmaceutical drug currently utilized in Germany, Switzerland, Denmark, and Austria. On the German side, the drug can be prescribed by physicians to any chronic pain patient, in addition to being used in oncology for treating nausea.
Despite federal prohibition of cannabis in the U.S., the FDA has approved dronabinol for weight gain in HIV/AIDS patients as well as for treating nausea and vomiting after chemotherapy.
Canopy Growth’s Co-Chief Executive Officer and board chairman Bruce Linton commented on acquiring the company:
Canopy’s European medical division Spectrum Cannabis will now add dronabinol to its lineup of product offerings as the company looks to the growing medical cannabis market in the European Union.
In other recent international news, last month Canopy made headlines by announcing plans to acquire US-based Acreage Holdings (CSE: ACGR.U; OTC: ACRGF; FSE: 0ZV). That deal raised eyebrows and led to increased speculation about changes to federal laws in the U.S., as the deal is dependent on cannabis becoming legalized at the federal level before the acquisition is completed.
While Canopy waits on cannabis laws to change in the U.S. before entering the THC market, the company is already moving into the hemp sector with the acquisition of a 308,000 sq. ft. facility in Kirkwood, NY to be utilized as an industrial hemp park.