Crescita Therapeutics and Sundial Growers Enter Development and Licensing Agreement for Topicals

Sundial Growers (NASDAQ: SNDL) and Crescita Therapeutics (TSX: CTX) jointly announced this morning a development and licensing agreement between the two firms. The agreement will see Crescita providing its proprietary transdermal tech to Sundial for the purpose of hemp and cannabis based topicals.

Crescita Therapeutics patented technology, known as DuraPeel and Multiplexed Molecular Penetration Enhancers (MMPE), is expected to increase the absorption rate of cannabidiol by skin by 6 and 14 fold respectively.

The products to be developed through the agreement will see Sundial provide the non-medical markets in Canada and abroad with cannabis and hemp based topicals, which include roll-on and topical creams. The exclusive licensing arrangement for Crescita’s tech will see the dermatology firm receive an undisclosed royalty on all products sold on a net worldwide basis. Crescita will retain the IP for its technology, as well as the right to leverage it for its own product offerings in the future.

This milestone underscores the strength of our IP and technologies in providing a differentiating factor in the cannabis market and is a step forward in making Crescita a leading dermatology company.

Serge Verreault, President and CEO of Crescita

Under the agreement, Sundial is to provide funding for development and formulation costs of all products created. Crescita meanwhile will perform the function of product development and formulations. Sundial will simultaneously support Crescita Therapeutics in obtaining a standard processing license for cannabis. While Crescita does not currently have such licensing, products are expected to be ready for market by early 2020.

Crescita Therapeutics closed Friday’s session at $1.02 on the TSX Exchange.

Information for this briefing was found via Sedar, Crescita Therapeutics and Sundial Growers. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.