Tilray, Inc. (NASDAQ: TLRY) announced on Tuesday morning that the cannabis producer has entered into a partnership with Swiss drugmaker Novartis (NYSE: NVS) to supply and distribute medicinal products globally. Shares were trading 9% higher mid-day on Tuesday, following the announcement.
Tilray has already expanded globally into countries such as Australia, New Zealand, Canada, Germany, Latin America and Portugal. Through the partnership with Novartis, Tilray can expand even further and commercialize its medicinal products.
Tilray said it would work with Novartis’ generic drug division Sandoz and supply non-smokable and non-combustible medical cannabis products to regions where it is already legalized. As part of the deal, Tilray and Sandoz may co-brand certain products as well create new ones.
The agreement builds upon Tilray’s track-record as a company committed to making pharmaceutical grade medical cannabis products for patients. Tilray is also the first licensed medical cannabis producer in North America to obtain current Good Manufacturing Practice (cGMP) certification.
“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,” says Brendan Kennedy, Tilray Chief Executive Officer. “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. Sandoz AG will be a valuable partner as we work together to improve access to the highest quality medical cannabis products in countries all over the world.”
Tilray has been taking over the cannabis scene since its initial public offering launch back in July. The cannabis company quickly spread out globally, becoming the very first to obtain regulatory approval to export medical cannabis in Canada and Germany.
Tilray’s shares listed at USD 17.00 per share and peaked over USD 200.00 per share just a few months after its IPO. Tilray shares surged by approximately 1160% from IPO price to all-time high back in September. Since the all time high, Tilray shares have fallen 66.9%.