“We have now demonstrated that Zelira’s proprietary improved distillate capture and dissolution matrix technology significantly traps distillate in a free-flowing powder matrix and increases the dissolution rate,” said the CEO.
Zelira Therapeutics Ltd (ASX: ZLD, OTCQB: ZLDAF) has opened up new avenues to develop pharmaceutical grade cannabidiol capsules and tablets with its proprietary Enhanced Distillate Capture and Dissolution Matric (EDCDM) technology.
EDCDM technology solves a non-uniformity problem that causes the cannabidiol distillate to separate from the powder bed when attempting to create solid oral dosage forms such as capsules and tablets.
“A very exciting development”
“We are confident that the cannabinoid drug market will grow dramatically when the ability to consistently formulate, validate and market dosage forms that closely resemble current pharmaceutical drugs and in formats such as capsules and tablets. will become available, ”said the global management of Zelira Therapeutics. director and CEO, Oludare Odumosu said.
“Reflecting Zelira’s biopharmaceutical business strategy, we have addressed two key issues that hinder wider acceptance and use of cannabinoid drugs: the difficulty of formulating solid oral dose drugs with distillate and the low rate of dissolution in the body. from capsules and tablets.
“We have now demonstrated that Zelira’s proprietary improved distillate capture and dissolution matrix technology significantly traps distillate in a free-flowing powder matrix and increases the dissolution rate.
“This is a very exciting development because it opens up multiple avenues for the development and commercialization of products for medicinal cannabinoids. “
A US $ 1 million base license agreement for the new technology has already been reached with DRCN Holdings and its affiliated medical cannabis operating licenses in Maryland, West Virginia, Pennsylvania and Michigan.
“Substantial and immediate value”
“The licensing agreement with DRCN Holdings reflects the substantial and immediate value of Zelira’s technology given the multiple products that can now be commercialized. We look forward to partnering with DRCN Holdings to bring new products to market that improve people’s lives, ”continued Odumosu.
“The success of Zelira’s EDCDM and the results demonstrating its efficacy reinforce Zelira’s commitment to world-class science and its position as a global biopharmaceutical leader in the development and commercialization of clinically validated cannabinoid drugs.
“We have just started to explore the breadth and depth of Zelira’s biopharmaceutical technologies and products in development that we will soon bring to market.
“Receipt of the initial, non-refundable and unconditional fees in connection with this transaction will further strengthen Zelira’s cash position. This places the company in a position of increased strength to continue to accelerate our prescription (Rx) and over the counter (OTC) business / strategies.
Zelira Therapeutics will receive a non-refundable and unconditional initial fee of US $ 1 million, giving DRCN Holdings the ability to develop up to three commercial products using EDCDM for a period of up to three years.
ZLD will receive a 20% royalty on net sales of marketed products, with the requirement that a minimum of US $ 1 million in net sales per year be produced. If net sales targets are not met, both companies have the right to cancel the license agreement.
How it works?
The solid oral dosage forms of cannabidiol have heretofore been compromised by the non-uniformity of the cannabidiol distillate, which causes the distillate to separate from its powder bed when encapsulated or compressed into a tablet.
The addition of EDCDM from ZLD results in a flowable powder base that will not separate when encapsulated or compressed, using nanoporous silicate particles to effectively trap the distillate in the silicate structure, making the bed of dry powder.
This stabilizing effect improved the average dissolution of cannabinoid capsules in comparative analytical tests performed by the Zelira laboratory in Pennsylvania, USA:
As evidenced by the foundational agreement signed with DRCN Holdings, these enhanced dissolution characteristics of Zelira’s EDCDM technology provide a rapid market opportunity.
License agreement with DRCN
DRCN Holdings LLC is a privately held, vertically integrated parent company that owns controlling interests in several West Virginia cannabis companies and affiliated cannabis entities in Maryland, Michigan and Pennsylvania.
These states have approved legal medical cannabis programs with additional emphasis on research, development, manufacturing, agricultural genetics, and human clinical trials for cannabinoid and FDA-approved prescription drugs.
DRCN is led by experienced industry experts, Reggie Alston and Neil Cooper, with experience in medical cannabis products, cultivation, manufacturing, processing and dispensary operations as well as research, development and technological improvements.
Key terms of the license agreement include:
- Zelira will receive an initial, non-refundable, unconditional license fee of US $ 1 million from DRCN Holdings;
- DRCN Holdings has the option of designating up to three target product profiles for Zelira to develop products;
- 3-year period to exercise product development options, with a possible extension of 2 years;
- The products must generate a minimum of US $ 1 million in net sales each year after marketing, otherwise each party has the right to cancel the license; and
- Zelira will receive a 20% royalty on net sales of marketed products created under the license.