#Canada #Toronto #MediPharm #Kensana Health #ABcann

MediPharm Labs Sells Napanee Facility to Kensana Health

In a significant move to streamline operations and bolster future endeavors, MediPharm Labs Corp. has announced the sale of its Napanee facility located in Ontario, Canada, to Kensana Health Inc. The total value of the transaction is set at $5.5 million, reinforcing MediPharm’s commitment to enhancing efficiency and maximizing stakeholder value.

Details of the Transaction

The transaction will be executed through a share purchase agreement whereby MediPharm Labs will transfer all of its indirect equity interests in its wholly-owned subsidiary, ABcann Medicinals Inc. This acquisition includes not only the Napanee Facility itself but also the underlying license, building, land, and equipment related to it.

MediPharm Labs emphasizes that existing commercial agreements and ongoing operations will remain with the company itself, ensuring continuity in its service offerings while capitalizing on new opportunities through the sale.

Strategic Partnership Formation

As part of the agreement, a strategic partnership is set to take shape post-closure, which is anticipated around January 1, 2025, pending approval from customary regulatory bodies. This partnership will involve a detailed supply and services agreement which will leverage MediPharm's advanced manufacturing capabilities in line with Good Manufacturing Practices (GMP).

Kensana Health plans to provide selected products and services that will enhance the international brands managed by MediPharm, intending to support the company's expanding global customer base. This alignment not only simplifies MediPharm’s core operations but also positions it to enhance its cash reserves and facilitate further growth investments.

Comments from Leadership

MediPharm Labs CEO David Pidduck expressed optimism regarding the transaction, stating, "This reflects our dedication to operational efficiency while cultivating strong collaborations that increase our global presence. By capitalizing on non-core assets and establishing a strategic supply agreement, we aim to continue delivering top-tier, GMP-certified cannabinoid solutions to our global partners."

Kensana Health is set to benefit from this transaction as it supports its ongoing FDA registration process for a novel topical treatment for chronic wounds. The drug has shown promising early research outcomes, particularly in patients resistant to conventional treatments.

Ken Clement, founder and CEO of Kensana Health, stated, "This acquisition is a strategic initiative aimed at enhancing our pharmaceutical manufacturing capacity to address various severe medical conditions and not just phytocannabinoids. We are particularly excited about the prospects that the Napanee Facility brings in our pursuit of global drug registration."

The Wounds Market Overview

Chronic wounds are a substantial healthcare challenge affecting millions, especially in the United States, where costs related to care exceed $100 billion annually. With plans for global expansion, Kensana Health’s initiatives are focused on providing solutions for a condition that significantly impairs quality of life and can lead to further health complications.

In partnership with the University of Sydney, Kensana is preparing for an international Phase III trial aimed at tackling calciphylaxis, a wound type known for its high mortality rate.

About the Companies

Kensana Health is a Canadian private company dedicated to providing innovative phytopharmaceuticals and advanced wound care solutions while adhering to Environmental, Social, and Governance (ESG) principles. The company combines expertise in plant-based medications with a focus on chronic wound treatment within a vertically integrated operational model.

MediPharm Labs, established in 2015, is recognized for its development of high-quality cannabis products. With a GMP-certified facility, it stands as a leader in research-driven cannabis concentrate manufacturing and has expanded its operations through strategic acquisitions and international collaborations.

This latest transaction represents a pivotal moment for both companies as they navigate the evolving landscape of the cannabis industry and pharmaceutical markets.