Transcription of Finance News Network Interview with Creso Pharma Limited (ASX:CPH) CEO, Dr Miri Halperin Wernli
Carolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from newly listed medicinal cannabis and hemp provider, Creso Pharma Limited
(ASX:CPH) is CEO, Dr Miri Halperin Wernli and Chairman, Boaz Wachtel. Boaz, welcome back.
Boaz Wachtel: Thank you.
Carolyn Herbert: Can you start by giving us an introduction to Creso Pharma, and tell us what sets your company apart from other medicinal cannabis companies?
Boaz Wachtel: We’re developing nutraceuticals, which is a fusion between pharmaceuticals and food supplements. So we have low regulatory barriers to introduce products into the market. We are working from Switzerland with the leadership of Dr Halperin Wernli. We have acquired Hemp Industries Ltd, which is a company that is already selling and generating revenues in Europe. We have delivered what we promised pre-IPO that we would generate revenues and sign agreements. So we are moving quickly to fulfil our promises and to advance the generation of revenues with Creso.
Carolyn Herbert: I’m now joined by Creso Pharma CEO, Dr Miri Halperin Wernli. Miri, welcome.
Dr Miri Halperin Wernli: Thank you.
Carolyn Herbert: Can you tell us a bit more about your medicinal cannabis products and what stage they’re at in development?
Dr Miri Halperin Wernli: Creso is developing cannabis-derived nutraceuticals, which is a special kind of products between pharmaceuticals and nutrition. Nutraceutical is a segment which is developing rapidly and we’re entering the nutraceutical segment with cannabis. We’re developing products for both human and animals. You will ask me why animals? Because animals have chronic diseases, which are poorly treated by human medications. So animals have the same endocannabinoid system as humans, so the same therapeutic rationale goes for the animals.
The therapeutic nutraceuticals for humans will be in two medical directions, two medical segments - stress and anxiety and for bone metabolism, which is both osteoporosis and osteoarthritis. It’s strengthening and remodeling of the bone, but also treating the pain with bone joints. So these are the two medical directions in the human nutraceuticals. And in the animal nutraceuticals, we are developing specific horse products and dog products, basically for behavioural problems and for anxiety and pain for these animals.
Carolyn Herbert: Back to you Boaz, now you have hemp production facilities in Slovakia. Can you tell us a little bit about these?
Boaz Wachtel: We acquired a hemp producing company in Slovakia to extract the CBD. The CBD is a non-psychoactive compound in the hemp product. We extract it and sell it in bottles. Now we have a distribution agreement in the Czech Republic for 10,000 bottles worth €200,000, so that is happening at base. We’re developing other products, like hemp-based protein health bars and so forth. So greater revenues are in the pipeline and we’re very confident that it is a good investment for Creso.
Carolyn Herbert: Now back to you Miri. Can you give us an update on your commercialisation process and which markets will be first?
Dr Miri Halperin Wernli: The products are already in an advanced stage of development. Both animal products will be ready for marketing towards the middle of next year. And we have already signed commercialisation agreements in Europe, starting with Benelux (Belgium, Netherland, Luxemburg) but also Latin America and in the Gulf region, where we can sell the horse products very well. And with the human nutraceutical products, we’ve already signed a commercialisation agreement with a pharma company in Switzerland, the first time a pharma company in Europe enters the cannabis field.
The products will be developed and produced in Switzerland. So Switzerland is the first market and it’s also the market, where we will register the product. That will be the referencing registration for other countries. We are discussing for Benelux, for Italy, for Spain and also for Latin America, Mexico, Brazil and expanding to the Gulf region also for the human segment. So the commercialisation agreements, some of them have been announced to the market and some are in preparation. But we are expanding globally.
Carolyn Herbert: So Miri, where and when do you expect the sales to occur?
Dr Miri Halperin Wernli: The sales from the Hemp Industries's product, which we acquired have started in Europe in the Czech Republic and they will expand in other parts of Europe. And the sales of the human and animal therapeutic nutraceuticals will occur late in 2017, starting in Switzerland and some key countries in Europe. But expanding from Europe to Latin America and also to the Gulf region.
Carolyn Herbert: A more general question now Boaz. Can you tell us where medicinal cannabis is allowed and where it’s likely to be approved, over the next few years?
Boaz Wachtel: It’s already approved by 29 States of United States in America and in Canada, and in Europe. It’s expanding rapidly, Germany, Austria and Australia is coming to the fold. We see a rapid expansion almost on a global scale, for people asking for medical cannabis. Creso will provide products to meet the demand with very unique delivery technologies. So we’re very optimistic that we can serve the growing need of the international market of medical cannabis.
Carolyn Herbert: Back to you Miri, a final question now. What are the company’s goals for the next six to 12 months?
Dr Miri Halperin Wernli: I think the goals are both to finish the development of our products, in a “turbo” way, in the most quick and efficient way, and start commercialisation. With animal products, we will start commercialisation toward the second-half of next year for both products, and for the human products, toward the end of next year. So we really expect the products to be already advanced in our pipeline in the next six months to 12 months, and expand commercialisation and globalisation.
Carolyn Herbert: Dr Miri Halperin Wernli, thanks for the update on Creso Pharma.
Dr Miri Halperin Wernli: You are welcome.
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