Australian and Swiss companies enter agreement to commercialize CBD for insomnia in Australia
Australian biotech company Avecho and Swiss company Sandoz, which focuses on “off-patent’ medicines, have announced an exclusive ten-year deal for the rights to a CBD capsule for insomnia in the Australian market.
The deal, announced on March 3, is a development and licensing agreement with Sandoz Group AG for the commercial rights to Avecho’s Phase III cannabidiol (CBD) capsule used for insomnia in Australia.
Under the deal, Avecho retains the rights to commercialize the product in all other territories, while Sandoz is granted a first right of refusal for these markets. Avecho’s CBD capsule aims to be the first pharmaceutical CBD product registered with Australia’s Therapeutic Goods Administration (TGA) as an over-the-counter medicine.
Sandoz has agreed to an upfront licensing fee of US$3 million for the exclusive commercial rights to the CBD product for insomnia in Australia. Avecho will also continue to fund and oversee the ongoing Phase III clinical trial. Upon successful completion of those trials, Avecho and Sandoz will both collaborate to secure TGA regulatory approval.
Sandoz will then purchase the finished product from Avecho and assume responsibility for the product’s commercialization, including marketing and distribution in Australia.
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Australian and Swiss companies enter agreement to commercialize CBD for insomnia in Australia
