Cannvalate has entered into an agreement with Tetra Bio-Pharma to conduct clinical trials of the Canadian firm’s cannabinoid drug candidates in Australia through its wholly owned clinical research organisation Ingenu.
As part of the deal, co-founder and CEO Dr Sud Agarwal will act as a special advisor to Tetra’s CEO and board of directors. Cannvalate will also acquire common shares in Tetra on a private placement basis, through seven distinct tranches, for aggregate proceeds of C$7.5m.
Upon completion of the fifth tranche, Dr Argawal will join the Tetra board as long as Cannvalate owns or controls more than 10% of the company. The deal is structured such that Cannvalate’s share ownership is limited to a maximum of 19.99%.
Tetra CEO Guy Chamberland said: “We have been developing inhaled cannabinoid drugs since 2016 and have a wealth of data to support the potential development of a new generation of drugs to help patients suffering from chronic diseases.
“It takes years of research and development to have a drug in two Phase 2 trials designed to support drug approval in the US and Europe. Finding ways to accelerate timelines while reducing the monthly burn is a continuous battle for all biotechnology companies. This partnership is intended to allow Tetra to achieve both goals.”
He added: “Dr Agarwal will bring both inhalation clinical expertise and cannabinoid drug-development experience to Tetra’s board. His addition will further strengthen our board as we continue to evolve into a cannabinoid pharmaceutical company.”