Tetra Bio-Pharma Inc. (OTCMKTS:TBPMF) has signed a definitive agreement with a US strategic partner for the acquisition of exclusive rights for Dronabinol Soft Gel capsules in Canada. The company plans to submit a New Drug Submission application for a Drug Identification Number (DIN) for a THC-based prescription drug in Q4 2020.
Tetra Bio-Pharma gets exclusive rights for commercialization of Dronabinol
With the acquisition of exclusive rights, Tetra will immediately establish a direct commercial presence in Canada for an existing cannabinoid derived drug. Most importantly, this will allow the company to establish a revenue stream based on a THC-based drug for Chemotherapy-Induced Nausea and Vomiting (CINV). Also, Tetra’s experience with Dronabinol will clear the path for the launch of CAUMZ™ into the Canadian market. The addressable market is likely to hit $80 million by 2022. Tetra aims to gain experience with a cannabinoid-derived drug in the market to get strategic insight that will be vital in discussions with partners at the global level.
According to the terms of the Agreement, Tetra will acquire commercial rights of Dronabinol Soft Gel capsules in Canada for two unspecified milestones. The Dronabinol Soft Gel capsules are important in AIDS-related anorexia due to weight loss and cancer chemotherapy-related severe nausea and vomiting. Dronabinol DIN launch will be in 1H 2021.
Tetra creating a revenue-generating avenue
Tetra CEO and CRO, Dr. Guy Chamberland, said that the transaction is an important milestone for the company that will allow the company to generate revenue. Guy said that on the regulator front, the Dronabinol data pack’s acquisition would allow the company to file a New Drug Submission application and accelerate different future investigational new drug submissions that include PPP02.
Chief Commercial Officer Steeve Neron said that the Dronabinol Soft Gel capsules acquisition enables the company to expedite its profitability goal. It will also help the company in becoming a significant player in cannabinoid derived drugs globally. The transaction will help the company establish a presence in Canada ahead of the CAUMZ™ launch.