Tilray and Novartis Sign One-of-a-Kind Cannabis Deal

[dropcap class=”kp-dropcap”]T[/dropcap]ilray Inc, a global leader in medical cannabis research, cultivation, processing and distribution, has announced earlier this week that it has signed a global supply and distribution agreement with a division of Swiss pharmaceutical giant Novartis AG.

Chief Executive of Tilray Brendan Kennedy said that the deal is the first major partnership between a cannabis company and a big pharmaceutical business in Canada, the second country in the world and only G-7 nation to legalize cannabis for recreational use. This agreement will enable the companies to distribute their products to approximately 35 countries around the world where medical cannabis is legal—a number that Kennedy believes will possibly increase in the future. The two companies will also work together to commercialize Tilray’s non-smokable medical cannabis products, develop certain items, and mentor pharmacists and physicians about cannabis.

“It just made sense for us to reach an agreement with a company like Sandoz [Novartis subsidiary], which is known for its focus on patients, its reliable supply chain, a well-established sales force and a global distribution network,” Brendan Kennedy told Bloomberg. “If a product comes into a pharmacy with the Sandoz logo co-branded on it, or if a pharmaceutical sales rep is talking to a physician about a product that’s branded as Tilray and Sandoz, it lends credibility to that product.”

Nanaimo, British Columbia-based Tilray and Sandoz Canada have been working together since March, when they announced an agreement to develop new medical cannabis products and work together on research and education. The companies also collaborated on eight oil and capsule medical cannabis products and are joint members of the Common Initiative, a group that’s working to make medical cannabis available in pharmacies.

The partnership with Sandoz Canada has so far been successful. “It’s been a very good experience, their team and their culture matches well with ours, we share similar values and visions for the future of the medical cannabis industry globally,” Kennedy said.