Cann Group has “positively progressed” commercial negotiations with GlaxoSmithKline’s consumer healthcare division, Haleon, over the potential sale and distribution of over-the-counter CBD in Australia.
The two firms initially struck an “evaluation and option” agreement in April, with Haleon also assessing the commercial opportunities of marketing Cann’s Satipharm CBD capsules in international markets.
A non-binding term sheet has now been signed identifying proposed milestone payments, sales-related payments and manufacturing margins to be paid to Cann.
The new agreement also confirms the intention to grant exclusive negotiating rights to Haleon over commercialising Satipharm overseas.
Pivotal to a final commercial agreement being signed will be the successful outcome of Cann’s phase III trial for sleep disturbance, the results of which are due early next year.
Chief operating officer Shane Duncan has previously told Cannabiz that a deal with Haleon “hangs on a positive clinical trial result and the ability to get the product registered”.
