Canopy Growth Acquires Medical Research Company To Expand R&D Initiatives

Canopy Growth Corp CGC said Friday it reached an agreement to acquire Beckley Canopy Therapeutics, a global cannabinoid-based medical research company.

What Happened

Beckley Canopy was created in early 2018 as part of a joint venture between Beckley Research & Innovation to better study clinically validated cannabis-based medicines, Canopy said in a press release. Under Canopy's umbrella, Beckley's resources will combine with its existing research business to continue clinical work under one single strategic plan.

Beckley Canopy focused mostly on three areas of research and made "significant process." The areas of interest include cancer pain, opioid sparing, and smoking cessation.

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As part of the agreement, Canopy also bought all outstanding shares of Spectrum Biomedical UK, the commercial arm of Beckley.

Why It's Important

The acquisition of Beckley will allow Spectrum to grow its size within the global medical cannabis market, Canopy Growth CEO Mark Zekulin said in the press release. The acquisition will also improve its positioning in the U.K. and Europe at a time when the region wants to "see stronger clinical evidence around cannabis-based medicines."

Canopy's acquisition remains subject to regulatory approvals and closing conditions. Once approved by relevant regulatory bodies, the acquisition is expected to finalize within the following 60 days.

Canopy Growth's stock closed Thursday at $32.86 per share.

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