Canadian cannabis producer Tilray Inc. TLRY surged Tuesday morning on the announced partnership with pharmaceutical giant Novartis AG NVS.
What Happened
Tilray said that its subsidiary, Tilray Canada, has entered into an agreement with Sandoz AG, part of the Novartis AG. Under the terms of global framework agreement, Sandoz may help Tilray commercialize its non-smokable and non-combustible medical cannabis products around the world. Tilray and Sandoz might develop medical marijuana brands and products. In addition, Tilray will supply Sandoz with medical marijuana products.
The agreement builds on top of the previous alliance between Tilray Canada and Sandoz Canada, which was announced in March.
Why It's Important
The partnership between Tilray Canada and Sandoz will help both companies leverage their strengths as cannabis' popularity spreads across the world. There are 30 countries worldwide that allow medical marijuana to one degree or another. Tilray already has operations in 12 countries, including Australia, New Zealand, Germany, Portugal and Latin America.
In this way, the partnership will allow Tilray expand into new markets and develop new products in collaboration with the subsidiary of one of the largest pharmaceutical companies.
Cannabis investors can't miss the Benzinga Cannabis Capital Conference, the No. 1 networking event for institutional capital and the leading cannabis companies. Secure your tickets here before they run out.
What's Next
The partnership between a large cannabis company and a pharmaceutical giant will certainly provide a boost to the medical marijuana segment, not only by increasing availability of medical-grade pot around the globe, but also through additional capital flowing in research and development, which could potentially result in more cannabis-based drugs.
At time of publication, Tilray traded up 8.7 percent at $71.65 per share.
Related Links:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.