Canadian pharmaceutical and cannabis company Tilray saw big gains on Tuesday after Wall Street learned that the company announced a global supply and distribution agreement with Swiss-based drug giant Novartis. Shares climbed almost 22% on the news.
As part of the agreement, Tilray will be working with Novartis’ generic drug business Sandoz and supply non-smokable and non-combustible medical cannabis products where it is legally allowed. Tilray and Sandoz may co-brand certain products as well as develop new ones as part of the agreement.
“This agreement represents a major milestone in the movement to provide access to safe, GMP-certified medical cannabis to patients in need across the world,” remarked Tilray CEO Brendan Kennedy.
“Tilray is a global company, and we’re thrilled to build upon the success and momentum from our existing agreement with Sandoz Canada by taking our partnership global,” he added.
“Around the world, people are substituting medical cannabis for traditional pharmaceutical products,” Kennedy stated via a phone interview.
“Medical cannabis is disrupting Big Pharma, and Sandoz and Novartis are smart for being ahead.”
Disclaimer: We have no position in Tilray Inc. (NASDAQ: TLRY) and have not been compensated for this article.
