Signs 12-Year Licensing Agreement with America's Largest Medical Cannabis Operator - Columbia Care LLC
Melbourne, Oct 3, 2018 AEST (ABN Newswire) - Melbourne based nasal respiratory company Rhinomed (
ASX:RNO) (RHNMF:OTCMKTS) is pleased to advise investors it has signed a 12-year exclusive licensing agreement of its nasal platform technology with Columbia Care LLC, the largest and most experienced provider of cannabis-based products and services in the United States (U.S.).
KEY HIGHLIGHTS:
- Rhinomed signs 12-year exclusive licensing agreement with New York based Columbia Care LLC, the largest and most experienced manufacturer and provider of medical cannabis products and services in the United States.
- Agreement will leverage Rhinomed's patented nasal technology platform and Columbia Care's extensive medical cannabis research and development, manufacturing and distribution capabilities.
- Rhinomed will receive revenues from products on a cost plus double-digit return basis. Rhinomed will also share in net revenues on a double-digit percentage basis.
- Product development to commence immediately on multiple products with potential for product launches in CY 2019.
- The envisaged portfolio of reliable, dose-metered cannabis-based medicines administered nasally will include over the counter and clinical applications.
- Initial product offering to target significant unmet needs in a range of qualifying conditions and symptoms including Obstructive Sleep Apnea, PTSD, Pain relief, Anti-Nausea and other Sleep-related conditions.
- Product to be distributed through Columbia Care's multi-state network of dispensaries, other U.S. based cannabis dispensaries with potential expansion (subject to separate agreements), through Rhinomed's extensive 9000+ U.S. based pharmacy distribution network.
- This agreement with Columbia Care provides Rhinomed shareholders with exposure to the world's largest and fastest growing cannabis market - the U.S.A.
The exclusive agreement covers the license of Rhinomed's nasal platform for the delivery of medical cannabis and cannabinoid compounds, analogues and derivatives in the U.S. market.
The program will see Rhinomed's platform used to develop a range of unique nasally delivered cannabinoid products targeting a wide range of significant and unmet clinical and consumer health needs in the U.S.
The companies believe that nasally delivered, dose-metered, targeted medical cannabis formulations open up a new pathway and opportunity across a range of indications for this class of medication within the pharmaceutical and over-the-counter consumer health/wellness settings.
Financials
Under the terms of the agreement Rhinomed will optimise its platform for delivery of cannabinoid formulations and supply the customised product to Columbia Care. Columbia Care will manufacture and place specific pharmaceutical formulations onto the platform in its facilities in the U.S.
Rhinomed will retain all intellectual property rights to its drug delivery platform. Any new intellectual property developed from the collaboration will be owned by the party responsible for the invention. Intellectual property invented jointly by Rhinomed and Columbia Care will be jointly owned by both parties.
The agreed revenue model will see Rhinomed receive cost plus a double-digit royalty fee on a per product basis.
In addition, Rhinomed will also receive a further double-digit share of net profits that varies based on the retail channel - with a greater share for product sold through its retail channels.
Rhinomed notes that while it is too early to assess whether the impact of this deal will affect its 2019 revenues the company has been steadily working to unlock shareholder value by strategically opening up new industry verticals such as drug delivery, following the widespread and successful distribution and adoption of its Mute nasal stent product.
Rhinomed's platform technology
Rhinomed's patented nasal technology platform has broad application across a range of markets. The platform is protected by a family of over 60 patents, granted and pending, plus further design patents, brand and trademarks.
Rhinomed has successfully commercialized two variants in sport and exercise (Turbine) and primary snoring and nasal obstruction (Mute). Mute has already achieved wide user adoption and retail distribution in over 9000 retail outlets in the US alone. Tens of thousands of people across three continents are already using Rhinomed technology to breathe and sleep better.
Rhinomed's unique nasal platform has broad application across a range of opportunities including nasal drug delivery and consumer health. The company's Mute technology is used by people around the world to help them to breathe more, snore less and sleep better.
About Columbia Care
Columbia Care ( www.col-care.com ) is the ideal partner for Rhinomed in the US market. Columbia Care:
- Is a patient centered healthcare company setting the standard-of-care for medical marijuana.
- Is committed to four key pillars: safety, scientific leadership, excellence and expertise, and compassion and care.
- Is 100% vertically integrated in nearly all markets in which it operates ensuring strict quality standards are upheld during every step of the process, from cultivation to production to sale.
- Is a leader in product innovation using rigorous scientific techniques in collaboration with world renowned academic and medical institutions.
- Provides the highest-quality and most consistent cannabis-based medical and wellness products.
- Drives continuous improvements in products and services based on new clinical and scientific research and patient reported outcome data.
- Is the largest and most experienced provider of cannabis-based products and services, reaching more than half of the U.S. population and has delivered over 750,000 successful interactions since inception.
- Has highly-qualified professionals or licensed pharmacists, at every dispensary, who work with patients to develop individualized care plans.
- Puts patients first, including subsidizing low-cost care for qualifying patients including senior citizens, veterans, terminally ill and those with financial need.
Nicholas Vita, CEO of Columbia Care said, "We look forward to working with Rhinomed to expand our portfolio of high-quality and consistent medical cannabis products to include an additional delivery format. Columbia Care is committed to being at the forefront of product innovation and patient satisfaction in the medical cannabis industry, and our partnership with Rhinomed to develop these cutting-edge cannabis-based medicines is directly in line with that vision."
Michael Johnson CEO of Rhinomed said, " We are thrilled to have this long term agreement with Columbia Care. Columbia Care are setting the standard of care for medical marijuana in the USA and we are excited to begin working with them to develop and bring to market a game changing portfolio of medical cannabis products.
We believe that there is clear medical research support for, and a very real and significant commercial opportunity for nasal stents with medical cannabis formulations. Nasal delivery of cannabinoids opens up a new and exciting market opportunity and has the potential to set a new standard by providing a better and more reliable and repeatable dosing experience.
This agreement is an important step in validating the utility and value of Rhinomed's platform technology. This exciting new range of products will sit alongside and complement our existing portfolio. It is an important step in ensuring that Rhinomed technologies deliver on our mission of radically improving the way people breathe, sleep, take medication and maintain their health and wellness."
About Columbia Care
Columbia Care is the US's largest and most experienced manufacturer and provider of medical marijuana products and services. The Company is licensed in highly selective and regulated jurisdictions and has completed more than 750,000 successful patient interactions since its inception. Working in collaboration with some of the most renowned and innovative teaching hospitals and medical centers in the world, Columbia Care is a patientcentered healthcare company setting the standard for compassion, professionalism, quality, caring and innovation for a rapidly expanding new industry. For more information on Columbia Care, please visit http://www.col-care.com
About Rhinomed Limited
Rhinomed Limited (ASX:RNO) is a Melbourne based technology firm with a focus on nasal, respiratory and breathing management technologies. The company is seeking to monetise applications of its technology portfolio in the Sport, Sleep, Wellbeing and Drug Delivery markets. For more information, go to www.rhinomed.global
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