Full Press Release Details
Canopy Growth Acquires Germany's C3 Cannabinoid
Founded by top global herbal medicine manufacturer
Bionorica SE, C3 is a leader in cannabinoid-based medical therapies used by European physicians to treat patients
The acquisition brings together Canopy Growth's medical
business with Europe's largest cannabinoid-based pharmaceuticals company. C3 is a leading manufacturer and distributor
of dronabinol, a registered pharmaceutical drug in Germany, Austria, Switzerland, and Denmark.
Dronabinol was the first cannabinoid product in Germany
that could be prescribed by the country's physicians. In 2018, C3 supplied approximately 19,500 patients in Germany
with dronabinol, achieving a YOY increase of 85%. In 2018, C3 achieved sales of approximately 27.1 million (CDN$
41.5 million) with cannabinoid products worldwide.
Significant addition to the Company's European infrastructure
including a robust sales and marketing organization already serving pharmacies and healthcare practitioners.
Provides existing production of pharmaceutical grade API
(active pharmaceutical ingredient), both natural and synthetic THC and CBD, to support pharmaceutical sales growth and ongoing
global clinical research programs. C3 currently holds several patents related to cannabis including extraction technology
and the synthetic production process and has several clinical trials underway.
SMITHS FALLS, ON and NEUMARKT, Germany,
May 2, 2019 /CNW/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NYSE:
CGC) is pleased to announce that it has acquired German-based, Bionorica SE-founded C3 Cannabinoid Compound Company
("C3") in a transformative deal that will see established single cannabinoid medicines brought together with
the world's leading full-spectrum medical cannabis offering.
The all cash-acquisition for 225.9 million
(CDN $342.9 million) furthers Canopy Growth's expansion into European markets with prescription medicines and gives the Company
immediate access to a wealth of knowledge and intellectual property that C3 has developed in its nearly 20 years of
research and development into synthetic and natural cannabis medical products.
C3's primary medicinal offering
is dronabinol, a pure chemical compound with standardized concentrations of tetrahydrocannabinol (THC), one of the active ingredients
found in cannabis plants that is responsible for various pharmacological effects. Dronabinol is available in Austria, Denmark,
and Germany for nausea and vomiting refractory to conventional treatment in oncology and palliative care, and for cancer pain.
In Germany, dronabinol can be prescribed for any type of chronic pain and for any condition in palliative care. C3 has
a total of five medicines in the market and its commercial operations generated 27.1 million (CDN $41.5 million) in 2018.
The acquisition will allow Canopy Growth to
further empower European physicians with the knowledge and therapies drawn from the full range of synthetic to naturally-derived
cannabinoid-based medicines. Adding dronabinol to Canopy Growth's product offering in Europe and potentially other key markets
will allow the Company's medical division, Spectrum Cannabis, to present an expanded, medically validated suite of cannabinoid
therapies to the benefit of healthcare professionals and patients. Furthermore, C3's infrastructure including production,
distribution, and sales & marketing significantly adds to the Spectrum Cannabis footprint in Europe, including an expanding
product line and additional reach into pharmacy and medical specialists' networks.
C3's clinical research programs
currently underway are expected to complement Canopy Growth's own clinical activities and provide data that could potentially
be applied to emerging product lines, enhancing the Company's prospects for bringing new approved products to market sooner. C3's
founding company, Bionorica SE, one of the world's leading manufacturers of scientifically researched herbal medicines and
Canopy Growth have also entered into a separate cooperation agreement and will be collaborating in areas spanning clinical research,
IP development and distribution opportunities.
With its substantial cash reserve, Canopy Growth
will continue to make strategic investments and acquisitions that will drive growth, create competitive advantage, enhance Canopy's
IP portfolio, and accelerate development and approval of cannabis-based therapeutics to continue to better serve its patients globally.
EXECUTIVE COMMENTARY:
"What this boils down to is greater choice,"
said Bruce Linton, Chairman & Co-CEO, Canopy Growth. "This acquisition will allow us to offer more options to physicians
across Europe, accelerate our commercial sales and increase our economic footprint on the continent, and drive forward new innovations.
Our goal is to build on C3's extraordinary reputation and decades of success as we move to an innovative continuum of
medical cannabis therapies that will enable physicians globally to better treat their patients."
"We are committed to changing the conversation
around cannabis-based therapeutics in Canada and around the world," said Dr. Mark Ware, Chief Medical Officer, Canopy Growth.
"To do that, we need a diverse toolbox of therapies that can be used by physicians who see the potential of the complete spectrum
of cannabinoid-based medicines. Welcoming C3 into our portfolio will help us put those tools in the hands of physicians
and their patients in Germany and elsewhere across Europe."
"In the last two decades, we've devoted
ourselves to the research of cannabinoids and have developed a wide range of valuable cannabinoid compounds and related patents,"
commented Professor Michael A. Popp, Owner and CEO, Bionorica SE. "Combining our knowledge, intellectual property, and reputation
amongst clinicians and doctors in Germany, Austria, Switzerland, and Denmark with Canopy Growth's expertise with natural full-spectrum
medical cannabis products and ongoing clinical trials promises to better serve patients globally."
C3 operates two state-of-the-art manufacturing
facilities specializing, respectively, in natural extraction and synthetic cannabinoid production. These facilities have grown
over the past 12 months to meet the growing demand for dronabinol and are scheduled for further expansion this year to accommodate
forecasted rapid growth in the business.
In March 2017, Germany became the first country in the
world to make dronabinol reimbursable. The prescription medicine is the first reimbursable cannabinoid agent in the country.
C3's senior management team includes; Dr. Josef
Harrer, Head of Business Development and Medical Marketing at Bionorica ethics; Kristin Mann, Head of Marketing and Sales, Anna
Urlacher, Chief Financial Officer, and Dr. Silvia Heise-Grubner, Head of Austrian operations. All four will continue to drive the
business post-closing, accepting leadership roles in the Company.
Here's to Future (Natural & Synthetic)
About Canopy Growth Corporation
Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated
cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth offers medically approved vaporizers through the Company's
subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven
by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.
The Company has operations in over a dozen countries across five continents.
The Company is proudly dedicated to educating
healthcare practitioners, conducting robust clinical research, and furthering the public's understanding of cannabis, and through
its wholly owned subsidiary, Canopy Health Innovations ("Canopy Health"), has devoted millions of dollars toward cutting
edge, commercializable research and IP development. Canopy Growth works with the Beckley Foundation and has launched Beckley Canopy
Therapeutics to research and develop clinically validated cannabis-based medicines, with a strong focus on intellectual property
protection. Canopy Growth acquired assets of leading hemp research company, ebbu, Inc. ("ebbu"). Intellectual Property
("IP") and R&D advancements achieved by ebbu's team apply directly to Canopy Growth's hemp and THC-rich cannabis
genetic breeding program and its cannabis-infused beverage capabilities. Through partly owned subsidiary Canopy Rivers Corporation,
the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the
From our historic public listing on the Toronto
Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through
leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including
cannabis icon Snoop Dogg, breeding legends DNA Genetics and Green House seeds, Battelle, the world's largest nonprofit research
and development organization, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates ten
licensed cannabis production sites with over 4.3 million square feet of production capacity, including over one million square
feet of GMP certified production space. The Company operates Tweed retail stores in Newfoundland and Manitoba and has entered into
supply agreements with every Canadian province and territory. For more information visit www.canopygrowth.com
About C3 Cannabinoid Compound
The C³ Cannabinoid Compound Company was founded in 2014 by Bionorica SE, one of the world's leading producers of herbal medicines,
as a holding company for the companies Bionorica ethics and THC Pharm. Both Bionorica ethics and THC Pharm have for almost two