Melbourne, Australia-based nasal respiratory company Rhinomed has signed a non-binding term sheet with US-based Columbia Care LLC to license Rhinomed’s nasal platform for the delivery of medical cannabis and cannabinoid compounds, analogues, and derivatives.
The non-binding term sheet sets out proposed terms for the licensing of the Rhinomed platform technology and enables Columbia Care and Rhinomed to jointly develop a range of cannabinoid products targeting a wide range of clinical and consumer health needs in the United States.
The binding agreement (which the parties hope to complete in the next 90 days) will deal with the licensing of Rhinomed’s platform technology, intellectual property, product royalties and supply of technology, exclusivity and other commercial issues. The program will leverage Rhinomed’s nasal platform with development taking place in Columbia Care’s research and manufacturing facilities nationally.
The companies believe that nasally-delivered, dose-controlled, targeted medical cannabis formulations open up a new pathway and opportunity across a range of indications for this class of medication within the clinical and over-the-counter consumer health settings.
With licenses in 12 of the most populous states and territories, Columbia Care is positioned to offer its pharmaceutical quality cannabis-based medicines to more than half the US population over the next 24 months. Columbia Care is a vertically integrated operation encompassing cultivation and production, research and development, and retail direct to patients through its network of dispensaries across the US. It has
completed more than 750,000 successful patient interactions since its inception.
Rhinomed has successfully commercialized two variants in sport and exercise (Turbine) and primary snoring and nasal obstruction (Mute) achieving wide user adoption and retail distribution in over 9,000 retail outlets in the US alone.
Nicholas Vita, CEO of Columbia Care, says in a release, “Rhinomed is a leader in the development of nasal and respiratory technology and Columbia Care is the leading medical cannabis product innovator and distributor in the United States. Marrying our respective core competencies gives us an immediate leadership position in the largest market in the world. Our partnership to develop a portfolio of truly innovative nasally administered dose-controlled cannabis-based formats furthers our mission to improve patients’ lives. Columbia Care is driven to develop and commercialize clinically-relevant pharmaceutical-quality products that deliver a precise and targeted amount of medical cannabis to address specific unmet needs. We look forward to commercializing these differentiated and clinically validated products and positively impacting millions of lives throughout the United States.”
Michael Johnson, CEO of Rhinomed, says, “We have steadfastly built a medical device platform that focuses on the role and importance of the nose. We have already built a significant global franchise as a leading consumer health brand in the global sleep market. In addition, our platform has obvious relevance across a range of other applications with nasal drug delivery being a key opportunity. We are delighted with the opportunity to partner with Columbia Care to bring a revolutionary range of nasally administered dose-controlled cannabis-based formats to the US market. By offering consumers and clinicians access to range of products that solve specific unmet clinical needs we firmly believe that we can modernize, and indeed medicalize, this market in a new and radical way.”
The companies will immediately commence working on the binding agreement and provide an update to investors upon completion. Investors should note that the proposed program is subject to the parties entering into a binding agreement.