Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has signed a letter of intent (LOI) with Laboratorios Brouwer and Medara S.A to progress the commercialisation and sale of Creso’s anibidiol® products in the Latin American market.
Under the LOI, Medara S.A. will support Creso Pharma and Brouwer in the importation, marketing, and sale of Creso’s products.
The three companies will initially target Argentina, Chile, Perú, Brazil, Colombia and Mexico. The size of the Latin American companion animal healthcare market (including nutritional supplements) was estimated to be about US$1.84 billion in 2022 and expected to reach US$2.47 billion by the end of 2027.
“Substantial growth expectations”
“Latin America is a highly attractive region for the company to operate in. As outlined above, we believe there are substantial growth expectations, and it boasts a very favourable regulatory environment across the animal health sector,” Creso Pharma CEO and managing director Will Lay said.
“We are confident that this LOI will provide the company with extensive expertise and manufacturing knowledge to progress long term sustainable growth across the Latin American region.”
Brouwer is a leading manufacturer and supplier of products for animal health and animal nutrition for companion animals and livestock. Based in Argentina, the group has branches throughout Chile, Perú, Costa Rica, Colombia, Brazil and Mexico.
The company manufactures and commercialises more than 150 products, has 600 product licences, considerable manufacturing capacity and relationships with distributors in 20 countries across Latin America, the US, Asia and the Middle East.
Creso expects commercialisation and sale within the new territories will begin in the second half of 2022.
“With Brouwer, Creso is building up a promising new partnership with a strong leading animal health company to penetrate further the Latin American countries,” Creso Pharma commercial representative for Latin America, Medara S.A.’s Jorge Giribone said.
“We are very proud to start this promising venture.”
The three parties have agreed to enter into a formal Commercial Services and Supply Agreement on or before July 30, 2022. The agreement will set out the terms upon which Brouwer and Medara S.A. will import and distribute Creso Pharma’s anibidiol® products in South America.
About Creso Pharma
Creso Pharma plans to bring the best of cannabis to better the lives of people and animals through its pharmaceutical expertise.
The company uses GMP (good manufacturing practice) compliant development and manufacturing standards for its products as a reference for quality excellence with initial product registrations in Switzerland.
Creso Pharma also has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.