Tilray Inc. announced Tuesday that its Tilray Canada Ltd. subsidiary has entered into a global “framework agreement” to collaborate with Sandoz AG, part of Novartis group, to increase availability of high quality medical cannabis products across the world.
Shares of Tilray were surging in Tuesday afternoon trading after the announcement.
Under the deal, Tilray and Sandoz’s Canadian arm plan to jointly operate in jurisdictions where cannabis is or will be approved for medical purposes.
The agreement, which builds upon an existing alliance between the two companies, also allows the companies to potentially collaborate in such areas as co-branding certain non-smokable/non-combustible products and developing new medical cannabis products.
Tilray was the first licensed medical cannabis producer in North America to obtain current Good Manufacturing Practice (cGMP) certification in accordance with the European Medicines Agency’s (EMA) standards.
Under the framework agreement:
Sandoz AG may support the global commercialization of Tilray’s non-smokable/non-combustible medical cannabis products
Tilray and Sandoz AG may co-brand certain non-smokable/non-combustible products
Tilray may supply non-smokable/non-combustible medical cannabis products and license rights to and from Sandoz AG in relation to such products; both companies also may partner to leverage best-in-class knowledge to educate pharmacists and physicians about medical cannabis products
Tilray and Sandoz AG may collaborate to develop new medical cannabis products.
Tilray’s stock jumped more than 15 percent to $76.05 in afternoon trading Tuesday, while Novartis AG shares dipped 25 cents to $85.51.
The company’s operation in Nanaimo, BC, is licenced to produce dried cannabis and cannabis extracts, including both bottled oil and capsules, for medical purposes, according to Canada’s CTV News. It also has a licenced facility in Enniskillen, ON, and is seeking a licence for a processing facility in London, ON.
Tilray has products available in 12 countries and operations in Australia, New Zealand, Canada, Germany, Latin America, and Portugal.