IntelGenx (TSXV:IGX; OTCQB:IGXT) executed of a definitive supply agreement with Heritage Cannabis Holdings (CSE:CANN; OTCQX:HERTF) to manufacture and supply filmstrip products containing 10 mg of cannabidiol (CBD) using IntelGenx’s VersaFilm technology for the Canadian and Australian markets.
IntelGenx also received its first purchase order from Heritage for 50,000 CBD Filmstrips and expects to make its first shipment of product to Heritage in the second quarter of 2021.
In addition to receiving a manufacturing margin, IntelGenx also will receive a double-digit royalty on the gross margin based on product sales. Heritage will supply CBD material for IntelGenx’s filmstrip manufacturing and supply in Canada and Australia on a non- and semi-exclusive basis, respectively. The agreement also contemplates an option on future co-development of CBD and tetrahydrocannabinol.
“We believe this first-ever purchase order for commercial quantities of an oral thin film product based on our VersaFilm technology represents a value inflection point for our company,” Dr. Horst Zerbe, CEO of IntelGenx, said in a statement.
Dr. Zerbe said IntelGenx is looking forward to building a strong partnership with Heritage, which shares its commitment to making innovative and high-quality oral thin film products available to medical cannabis consumers.
Umar Syed, president of the medical and international division of Heritage, said rapidly dissolving CBD Filmstrips “provide tangible benefits for medical cannabis consumers, such as a more discreet and convenient administration method.”
As Heritage continues to build a wide spectrum of medical cannabis products that offer both traditional and newer delivery platforms, “we are excited to be at the stage where we will be distributing CBD Filmstrips in Canada and Australia,” he added.
The CBD Filmstrips will be produced at IntelGenx’s manufacturing facility under Canadian GPP conditions and registered as a product for sale with Health Canada as a cannabis product governed by the Cannabis Act and with the Australian Department of Health’s Therapeutic Goods Administration as a medicinal cannabis product governed by the Narcotic Drugs Act.