Clinical stage cannabinoid company Botanix Pharmaceuticals (ASX:BOT) has entered into a supply agreement with US-based company Purisys.
Purisys is a leading provider of pharmaceutical-grade cannabidiol and other cannabinoids.
The new agreement, which runs until December 2027, will cover Botanix’s requirements for immediate clinical and future commercial supplies of synthetic cannabidiol active pharmaceutical ingredient (API). It also commits Botanix and Purisys to collaborate in relation to setting future volume requirements and manufacturing scale up and optimisation.
Botanix said it was able to secure "preferential pricing" for its synthetic cannabidiol API requirements and that the "strategic relationship" solidifies its future supply needs both for clinical as well as scale and commercial manufacturing purposes.
Purisys has also committed to providing certain supply exclusivities to Botanix for its existing pipeline products in skin disease following FDA approval. In exchange, Botanix said it has committed to purchasing a proportion of its commercial supply requirements from Purisys following launch of specified pipeline products.
According to Vince Ippolito, president and executive chairman of Botanix, “We are very pleased to partner with Purisys, to secure our near term and future supply needs for synthetic cannabidiol in the marketplace. Our desire to lock in access and participate in efficiencies as we scale source of high-quality API at a time when our clinical programs are accelerating and the demand for ultra -high purity cannabidiol is exploding was an important driver to completing this agreement with Purisys at this time.”
Purisys CEO Jim Mish said, “Purisys is proud to partner with Botanix to supply pharmaceutical-grade cannabidiol for its clinical and commercial needs, because we recognize that Botanix is leading the world in the development of pharmaceutically focused skin care products. As the market matures, I am confident that the quality, purity and scale Purisys offers will be essential in the development and supply of safe and effective products and the Botanix pipeline presents a significant commercial opportunity for both companies.”