Creso Pharma Limited (ASX:CPH, FRA: 1X8) is set to take its product deeper into the Latin American market.
The expansion of its comprehensive distribution agreement with leading nutritional supplements company Route2 Pharm Pvt Ltd, will allow for distribution of CPH’s hemp derived therapeutic products sold under the cannaQIX® and CannaDOL brands into Ecuador.
Expansion of this agreement gives CPH access to the rapidly growing Latin American CBD market.
According to analytics company Statista, “the recreational legal cannabis market in Latin America and the Caribbean was forecast to reach nearly 300 million US dollars by 2024, up from an estimated value of four million dollars in 2020.”
The following graph indicates just how quickly this market is growing and how large it is becoming:
That the Latin American cannabis market is growing so rapidly is a widely held view:
CPH has the product range to capitalise, while Route2Health has over 30 years of pharmaceutical science experience and focuses on producing and distributing world-class herbal remedies and dietary supplements.
Together the companies, in association with Highnoon Laboratories (PSX: HINOON), which is principally engaged in the manufacture, import, sale and marketing of pharmaceutical and allied consumer products, will work together to leverage their combined international reach to include Ecuador to the existing agreed markets of Pakistan, Afghanistan, Azerbaijan, Bangladesh, Cambodia, Georgia, the Maldives, Myanmar, the Philippines, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.
Roll out subject to regulatory approval.
“The evolving regulations in Ecuador and the broader Latin American and Caribbean region present a tremendous opportunity for both our human and animal products and the extension of our distribution agreement with an established company such as Route2 provides the opportunity for millions of people to gain access to our innovative products,” CPH Non-executive Chairman Adam Blumenthal said.
“Our mission is to deliver access to affordable, high quality, broad spectrum, GMP products for the betterment of people’s lives everywhere. We are witnessing strong uptake across our entire product suite and this agreement provides further evidence of the considerable potential that the Company has in established and emerging markets alike.”
CPH currently has a portfolio of 13 products, eight of which have been commercialised and are generating consistent revenues, with the remaining pending commercialisation shortly.
Working together, CPH, and Pakistan-based Route2 and Highnoon will have truly global product reach in burgeoning markets.
Ecuador itself provides a large market opportunity for CPH as it recently passed legislation to approve the production, commercialisation, use and consumption of cannabis for medicinal or therapeutic treatment.
Ecuador’s population is 15 million-plus, while the broader Latin American and Caribbean region has an estimated population of 655 million.
“We are pleased to continue our investment in this partnership with leading global cannabis company Creso Pharma,” Tausif Khan, the Chairman of Route2 and Highnoon Laboratories said.
“Our teams’ joint efforts are making significant progress in key target markets and we are excited to leverage this momentum into additional territories. We share the commitment of Creso Pharma of bringing affordable, high quality products to market which improve peoples’ lives and we will continue to leverage the financial and marketing strength of our group to deliver on this mission.”