Canopy Growth Corp CGC is strengthening its presence in Germany and Europe with the acquisition of C3 Cannabinoid Compound Company, a leading manufacturer and distributor of dronabinol, a synthetic cannabinoid.
What Happened
The value of the transaction is 225.9 million euro (about $254 million USD) and it will be conducted in all-cash.
Through this transaction, Canopy Growth will expand further in the European markets and will be able to access C3's knowledge and intellectual property that has been developed over almost 20 years of research. The company has several patents related to cannabis extraction and the synthetic production.
In addition, Canopy Growth and C3's founding company Bionorica SE entered into a cooperation agreement.
Once the deal is completed, C3's clinical research programs will complement Canopy Growth's own research and provide data that could be applied to emerging product lines.
Why It's Important
German-based C3 Cannabinoid Company is a leading distributor of dronabinol, a synthetic form of delta-9-tetrahydrocannabinol, the primary psychoactive component of cannabis. Dronabinol is a prescription drug in Germany, Austria, Switzerland and Denmark, being used as an appetite stimulant, antiemetic and sleep apnea reliever.
C3 Cannabinoid is Europe’s largest cannabinoid-based pharmaceuticals company, according to the press release.
In 2018, C3 provided dronabinol to 19,500 patients in Germany, an increase of 85 percent on the year. The same year, the company generated sales of 27.1 million euro from five products.
By acquiring C3, Canopy Growth will be able to bring together both synthetic cannabinoid-based medicines and full-spectrum cannabis products under the same umbrella.
Canopy Growth will also continue to make strategic investments and acquisitions to boost growth and create competitive advantage.
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