STOCKHOLM, Sweden, 18 January 2021 – Lipidor AB (Nasdaq First North:LIPI) today announced that the Company has signed an exclusive licensing agreement with Cannassure Therapeutics Ltd. (TASE:CSURE), an Israeli company specializing in the development and manufacture of innovative medicinal cannabis products. Under the agreement, Cannassure has the exclusive right to use Lipidor's proprietary drug delivery technology AKVANO[®] in medicinal cannabis products for the treatment of selected indications such as psoriasis, atopic dermatitis, pain and lesions. Lipidor receives a royalty of 15-17.5% on future product sales. When a predetermined accumulated sales volume is achieved, Lipidor will receive an additional milestone payment in the form of 1% of the share capital value of Cannassure, up to a maximum of EUR 350,000. Lipidor’s projection is that this milestone compensation will be paid within a two-year period.
The collaboration began with an evaluation of the possibility of incorporating various active drug substances from the cannabis plant into AKVANO®. Following the positive outcome of a thorough feasibility study into the development of topical medicinal cannabis products for the treatment of skin inflammations and psoriatic lesions, Cannassure chose to exercise its option to negotiate an exclusive license for a number of indications. The negotiation with Cannassure regarding the exclusive licensing agreement for the use of Lipidor’s AKVANO® technology has now been finalized and the agreement has been signed.
Under the terms of the agreement, Cannassure shall during the coming years develop products with the goal of quickly entering the market in the non-prescription segment (OTC), and later in the prescription (Rx) segment. Lipidor retains the right to develop cannabis-related products in other indications than those covered by the exclusive licensing agreement. The agreement is valid as long as Lipidor has patent protection of the AKVANO® formulation under existing patents or under possible new patents that may arise during the collaboration.
“We are delighted to have formed the licensing agreement with Cannassure, which represents a significant commercial potential for Lipidor. This is an important milestone and an external validation of our unique formulation platform, showing that cannabinoids can also be well incorporated into AKVANO®. Cannassure's advanced production facility, development resources and distribution relationships for medical cannabis are of a high standard. We have great faith in Cannassure as well as high expectations on the partnership with the aim to commercialize the new drugs as soon as possible,” says Ola Holmlund, CEO of Lipidor AB.
Ran Amir, Cannassure CEO, stated: “We look forward to continuing the successful cooperation with Lipidor in the field of medical cannabis. The AKVANO® non-touch application paired with an excellent uptake of active substance in different skin layers opens up for new high-potential treatments with great patient benefits. The common goal is to introduce innovative topical treatments to the fast-growing global market for medical cannabis products and we have already seen a significant interest from distributors.”
Cannassure assesses, based on public information, that the market for topical therapies for indications under the scope of this license agreement will undergo a significant growth in the next few years and may exceed USD 50 billion by 2027. Cannassure's ambition is to compete successfully in these fields with innovative cannabis products.
AKVANO® is an innovative water-free and sprayable technology for the formulation of drugs and is particularly suitable for local application, for example, to the skin. AKVANO® is comprised of carefully selected lipids and a volatile solvent, which together form a delivery system for selected active substances. By combining different lipids, AKVANO® can be optimized to achieve the desired function of active components in the formulation. When applied to the skin, the solvent evaporates and a thin lipid layer is formed on the skin surface for effective release of the active substance.
This disclosure contains information that Lipidor is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 18-01-2021 08:15 CET.