Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) has received a European patent covering its closed loop chilled solvent feed apparatus for post-extraction cannabinoid processing.
In a statement, the extraction company said the patent is “vital” to the low-cost production of cannabis distillate.
Vancouver-based Nextleaf has over 70 patents globally covering the extraction, purification and delivery of cannabinoids. The latest patent comes at a time when cannabis acceptance in Europe – particularly for medical purposes – is starting to become mainstream.
READ: Nextleaf Solutions says subsidiary completes inaugural bulk-CBD distillate delivery to US-listed, Canadian-based global cannabis company
Earlier this year Irish pharmaceutical giant Jazz Pharmaceuticals made a bid to acquire US-listed GW Pharmaceuticals for US$7.2 billion, gaining access to its medical cannabis patent portfolio.
Nextleaf CEO Paul Pedersen told investors he is “optimistic” about the positive signs towards cannabis legalization in Europe.
"We have validated our extraction and distillation technology here in Canada, the world's largest and most well-regulated federally legal jurisdiction,” Pedersen said.
“Nextleaf's global IP strategy allows for speed to market by exporting our 'Made in Canada' technology into emerging cannabis markets. When you look at the companies that own the most cannabis patents throughout Europe, you find Canopy Growth, GW Pharma, Pfizer, and Nextleaf Solutions."
Positive trends
Research firm Brightfield Group estimates that domestic cultivation and pressure on Europe's healthcare system to allow general practitioners to medical cannabis will result in a compound annual growth rate of 98% from 2020-2025. The firm expects the entire European market to grow to over $3.1 billion by 2025, led largely by the UK, which legalized medical cannabis in 2018.
In February 2021, plant-derived CBD was added as a legal ingredient in cosmetics by a key market regulator for trade in the European Union.
"We know that medical cannabis acceptance in Europe will be a major catalyst to jump-start pharmaceutical participation because these jurisdictions collectively manufacture and export over 70% of all drugs and medicines consumed globally," said Pedersen.
"We are starting to see the value of IP come to the forefront of the industry with the largest cannabis company in the world, Canopy Growth, launching a cannabis extraction patent infringement lawsuit against GW Pharma this past December."
Nextleaf said it considers its European intellectual property strategy “central” to the company's global aspirations.
Contact Angela at angela@proactiveinvestors.com
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