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Lipidor, Cannassure Ink Licensing Deal For Use Of AKVANO Technology In Medical Cannabis Products

Lipidor AB, a Sweden-based lipid technology company, said it has signed an exclusive licensing agreement with Cannassure Therapeutics Ltd., an Israel-based manufacturer of medicinal cannabis products.

Under the licensing deal, Cannassure has the exclusive right to use Lipidor's patented drug delivery technology AKVANO in medicinal cannabis products for the treatment of selected indications such as psoriasis, atopic dermatitis, pain and lesions.

AKVANO is a water-free and sprayable technology for the formulation of drugs. It is particularly suitable for local application, such as to the skin.

Under the terms of the license deal, Cannassure shall develop products over the next few years with the goal of quickly entering the market in the non-prescription segment or OTC, and later in the prescription or Rx segment.

The agreement is valid as long as Lipidor has patent protection of the AKVANO formulation under existing patents or under possible new patents that may arise during the collaboration.

Lipidor said it will receive royalty of 15 percent to 17.5 percent on future product sales. The company will also receive an additional milestone payment from Cannassure on achievement of a predetermined accumulated sales volume.

The milestone payment will be in the form of 1 percent of the share capital value of Cannassure, up to a maximum of 350 thousand euros. Lipidor projects this milestone compensation will be paid within a two-year period.

Lipidor noted that its collaboration with Canassure began with an evaluation of the possibility of incorporating various active drug substances from the cannabis plant into AKVANO.

Following the positive outcome of a feasibility study into the development of topical medicinal cannabis products for the treatment of skin inflammations and psoriatic lesions, Cannassure chose to exercise its option to negotiate an exclusive license for a number of indications.

Lipidor will retain the right to develop cannabis-related products in other indications than those covered by the exclusive licensing agreement.

Based on public information, Cannassure projects the market for topical therapies for indications under the scope of this license agreement will experience significant growth in the next few years, and may exceed $50 billion by 2027.

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