Oxford Cannabinoid Technologies Enters Into License Agreement with Canopy Growth for Pharmaceutical Assets
The Dank Investor Posted On September 22, 2021 
Oxford Cannabinoid Holdings plc (LSE: OCTP) has got access to the huge library of Canopy Growth Corporation (TSX:WEED, NYSE:CGC).
The access has been granted as part of the exclusive licensing agreement signed by both companies. Oxford Cannabinoid now has access to 335 derivatives and 14 patent families. This is expected to boost the timeline of clinical trials and the development of drugs.
About Oxford Cannabinoid Technologies
Oxford Cannabinoid Technologies, also known as OCT, is a pharmaceutical company. It mainly works in the department of developing prescription cannabinoid medicines. OCT target the customers of the U.S. multi-billion pain market. The company aims to conduct clinical trials and develop drug candidates that would be eligible for approval from relevant regulators.
The approval would enable the medical professionals to prescribe these products to their patients. OCT works to maintain exclusivity in the market while striking a balance between risk, value, and time to take the product to the market.
About Canopy Growth Corporation
Canopy Growth Corporation, also known as Canopy Growth, is a company that is known for its diversification in cannabis and cannabinoid-based products.
The management of the company works with the passion of improving the lives of the members of the community, end prohibition on cannabis products, and make the community in general stronger than before.
The portfolio of Canopy Growth includes products like dried flower, infused beverages, oil, edible, and topical formats. The company also sells vaporizer devices in the retail market. Canopy Growth has now stepped its foot in the health and wellness space of the market.
It covers the market of the US, Canada, and Europe through Steel Sports nutrition. It has established its partnership with Constellation Brands, the alcohol leader to feature among the Fortune 500 companies.
The Announcement
The announcement was made by OCT on September 21, 2021, about the company getting into the exclusive agreement with Canopy Growth. The exclusive licensing agreement serves well for both companies. While OCT gets access to the wide library of Canopy Growth, Canopy Growth would get paid an annual fee along with additional payments.
These additional payments would be based on the development in clinical trials, achievement of regulatory & sales milestones, and royalties.
The terms of the exclusive agreement grant OCT access to the library of Canopy Growth. This includes 335 derivatives and 14 patent families. The 335 derivatives include the derivatives of tetrahydrocannabinol, cannabidiol, and cannabigerol.
Canopy Growth would also grant access to OCT in other products that would be necessary for research and development.
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The exclusive licensing agreement between OCT and Canopy Growth has terms that are clearly defined for better professional operation. The terms specify that OCT must put reasonable efforts to develop and commercialize:
- At least 1 CBT derivative;
- At least 1 CBG derivative; and,
- At least 1 THC derivative.
The terms emphasize that OCT must develop and commercialize them under the category of the pharmaceutical drug product.
Dr. John Lucas, the Chief Executive Officer of OCT, issued his comment officially after signing the exclusive agreement. He said that the exclusive licensing agreement was a significant achievement for the company.
The company has always held its head high in the international market. The exclusive agreement is a sign of this statement, he added. OCT expects that the outcome would now be more favorable. Signing the exclusive agreement with Canopy Growth increases the probability of the outcome being delivered in their favor.
The access to the wide library of Canopy Growth’s derivatives and patent families is also expected to boost the time frame of its clinical trials.
