Levitee Labs Inc (CSE:LVT) Inc announced that it has signed a letter of intent to acquire 51% of the issued and outstanding shares of Compounding Pharmacy — a new research and development pharmacy with compounding capacities in Alberta.
The Vancouver-based company said that the newly acquired pharmacy will focus on the production of intranasal ketamine and sublingual preparations, topical and transdermal formulations, capsules, and other Levitee-branded compounds and products.
READ: Levitee Labs announces acquisition of addiction clinics, pharmacies for expanding its pain and addiction relief services
“This acquisition has tremendous implications for our business as we look ahead to our own formulations and branded consumer goods, which will include products such as intranasal medicines and ketamine creams,” said Pouya Farmand, CEO at Levitee Labs (CSE:LVT) in a statement.
Farmand added: “Bringing a large R&D compounding pharmacy to our Levitee Pharmacies group is a true value-add as we work towards economies of scale as a fully integrated company.”
The Compounding Pharmacy is a licensed Level C non-sterile compounding lab adjacent to a separate compounding space and retail pharmacy. It will be used to expand Levitee Labs (CSE:LVT)’ operations by introducing an R&D laboratory for the discovery and production of cutting-edge ketamine and psychedelic medicines, when permitted by law, for the safe and effective treatment of addiction, depression, and pain management.
The wellness company noted that it will provide a variety of innovative delivery methods and unique forms of dosage such as intranasal ketamine and sublingual preparations, topical and transdermal formulations, capsules, suppositories, oral liquids, and lollipops.
The initial focus for formulations is on addiction treatment, mental healthcare, and pain management, with plans to expand the scope of work to other areas, the statement said.
According to a study conducted by the Toronto Rehabilitation Institute, transdermal ketamine and lidocaine were found to be effective in 73% of patients diagnosed with acute neuropathic pain, from a sample size of 854 patient charts. These findings indicate the effectiveness and potential that ketamine-based compounds have on individuals with ailments that require their use.
Levitee added that acquisition represents the launch of its initiative into the production and distribution of pharmaceutical products under the company banner.
The company said that it will retain the right to acquire the remaining 49% of the Compounding Pharmacy at a pre-determined valuation.
Levitee is establishing itself as a leader in the integrative wellness space through leveraging an M&A regimen. The company is aiming to transform mental health and addiction treatments through the integration of psychedelic medicines and therapies.
Contact Ritika at ritika@proactiveinvestors.com