Shares in Canadian cannabis company Tilray jumped by more than 11% today after the British Columbia-based firm announced its entry into a global supply and distribution agreement with Swiss multinational Novartis.
The medical cannabis producer will work with Novartis subsidiary Sandoz to develop “new and innovative medical cannabis products that offer an alternative to smokable/ combustible products.” Sandoz will also wholesale and distribute Tilray products to Canadian hospitals and pharmacies.
“This agreement is a major milestone on the long road to legitimizing medical cannabis as conventional medicine,” said Brendan Kennedy, Tilray Chief Executive Officer. “Tilray is pleased to be, what we believe is, the first federally licensed producer of medical cannabis to form a strategic alliance with a local affiliate of a global pharmaceutical company to improve the availability and quality of medical cannabis products for Canadian patients in need.”
The deal comes just months after shares in Tilray shot up by as much as 120% in September of this year. The company became the first cannabis producer in North America to be GMP certified in December 2016.
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