Cannabis Stock: Canopy to Sell Skincare Products
Canopy Growth Corporation (TSX:WEED) and Skinvisible Pharmaceuticals, Inc. (OTC:SKVI) have announced that they have signed a definitive license agreement for Skinvisible’s patented topical formulations. The Canadian cannabis stock will likely derive several benefits from this partnership.
Skinvisible Pharmaceuticals is a research and development company that licenses its proprietary formulations made with Invisicare. This patented polymer delivery system offers life-cycle management and unique enhancements for topically delivered products.
Per the agreement, Canopy Growth is exclusively licensed to distribute Skinvisible’s topical products in Canada. It will also have a first right of refusal for all other countries, excluding China and the United States.
The agreement covers two distinct product lines made with Skinvisible’s Invisicare technology. Skinvisible will first develop unique topical hemp-based products that will be launched by Canopy Hemp Corporation in Canada and the United States. The agreement also includes potential cannabis-based topical products using the Invisicare technology when and if federal regulations permit CBD or THC infused topical products in Canada.
“This agreement will have an immediate impact on our hemp product lines as this proven technology can be applied to a hemp oil product in today’s regulatory environment,” said Mark Zekulin, President of Canopy Growth. “Moving forward, cannabis product diversity will be increasingly important and this agreement prepares us for future product opportunities on that side of our business if and when the regulatory environment evolves.”
“This agreement with Canopy Growth Corporation is a significant milestone for Skinvisible,” said Skinvisible President Terry Howlett.
“Canopy Growth is the leader and innovator in the cannabis space with over half a million square feet of GMP-certified cannabis cultivation, a robust hemp operation, multiple commercialized brands in Canada, and rapid international expansion and partnerships underway including Germany, Australia, Brazil, Chile, Denmark and Spain. Canopy Growth is the perfect partner to take Skinvisible’s topical products globally, always in keeping with its reputation for only pursuing federally legal opportunities.”
The demand for topically delivered cannabis is increasing, driven by consumer awareness of its medical benefits and favorable legislative changes worldwide. Invisicare, a technology with 14 international patents, is able to improve upon the delivery of ingredients (i.e. CBD or THC), delivering up to five times more than brand leaders. Because of this, Canopy’s deal will only make the cannabis stock all the more resilient.