Melbourne, Australia-based nasal respiratory and sleep company Rhinomed has signed a 12-year exclusive licensing agreement of its nasal platform technology with Columbia Care LLC, a large provider of cannabis-based products and services in the United States.
The agreement covers the license of Rhinomed’s nasal platform for the delivery of medical cannabis and cannabinoid compounds, analogues, and derivatives in the US market. Earlier this year, Rhinomed signed a non-binding term sheet with Columbia Care.
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. The program will see Rhinomed’s platform used to develop a range of unique nasally delivered cannabinoid products “in a range of qualifying conditions and symptoms including obstructive sleep apnea, PTSD, pain relief, anti-nausea, and other sleep-related conditions,” states a press release.
Under the terms of the agreement Rhinomed will optimize its platform for delivery of cannabinoid formulations and supply the customized product to Columbia Care. Columbia Care will manufacture and place specific pharmaceutical formulations onto the platform in its facilities in the United States.
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 distribution and adoption of its Mute nasal stent product.
Rhinomed’s Platform Technology
Rhinomed’s patented nasal technology platform is protected by a family of over 60 patents, granted and pending, plus further design patents, brand, and trademarks.
Rhinomed has commercialized two variants: 1) in sport and exercise (Turbine), and 2) and primary snoring and nasal obstruction (Mute). Mute has achieved retail distribution in over 9,000 retail outlets in the US alone. Tens of thousands of people across three continents use Rhinomed technology to breathe and sleep better.
Nicholas Vita, CEO of Columbia Care, says,, “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, says, “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.”