just a reminder folks.. Avecho signs Term Sheet for Cannabinoid...

just a reminder folks..

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Avecho signs Term Sheet for Cannabinoid Supply with Purisys
Melbourne, Australia, 14 April 2020 – Avecho Biotechnology Limited (ASX: AVE) ("Avecho") today announces that it signed a term sheet with leading global supplier of cannabinoid actives, Purisys LLC for the supply of pharmaceutical grade cannabidiol and dronabinol. Avecho will combine Purisys’ cannabinoids with its own TPM® technology to develop new oral cannabinoid products.
Avecho (formerly Phosphagenics) has a long relationship with Purisys’ predecessor company, Noramco. The synthetic cannabidiol produced by Purisys is distinguished by its strong intellectual property position, ultra-high purity, commercial scale, and low THC concentration. The term sheet describes Purisys’ supply of cannabidiol and dronabinol for the research and clinical development of TPM® enhanced cannabinoid products that will be developed by Avecho for specific clinical indications and formal regulatory approval. In return, Avecho has agreed to purchase future commercial supply from Purisys upon the commercialisation of specific cannabinoid products.
Avecho’s decision to develop TPM® enhanced cannabinoid products follow corroborating experiments conducted at Purisys demonstrating that TPM® can increase the solubility of cannabinoids. The limited aqueous solubility of cannabinoids leads to poor oral bioavailability, high variability in absorption, and difficulty in developing aqueous dosage forms. Dr Paul Gavin, Chief Scientific Officer of Avecho said, "TPM® has been shown to reproducibly increase the bioavailability and duration of absorption of orally ingested lipids, as well as increasing their solubility in aqueous mediums. The solubility profile of the cannabinoids is perfect for use in combination with TPM®. It is anticipated that the inclusion of TPM® will overcome many of the limitations of cannabinoid dosing that result from its poor solubility and allow Avecho to offer positively differentiated products with patent protection."
Medicinal and consumer cannabinoids are at present estimated to represent about 40% of the global cannabis market and are expected to grow from around AU $8B (2019) to greater than AUS $25B in 2025. While Avecho develops its own pharmaceutical oral cannabinoid, the research program will be designed to support the addition of TPM® to other cannabinoid products, included medicinal cannabis and consumer products.
Dr Greg Collier, Executive Chairman of Avecho said, "Both the medicinal and consumer cannabis markets are presently attracting enormous interest and investment, and with it, growing interest from cannabinoid manufacturers and suppliers seeking truly differentiated products. At present, the cannabis extracts entering these spaces are very similar. We believe the addition of TPM® will provide commercially advantageous differentiation. This agreement provides both companies with the opportunity to combine their respective expertise in a way that can rapidly bring truly differentiated products to this exciting and growing market. We look forward to updating the market on this opportunity."