Creso Pharma Ltd (ASX:CPH) (FRA:1X8) has signed a non-binding, non-exclusive Letter of Intent (LOI) with Polish company Polvet to progress a commercial agreement to market and distribute Creso’s cannabis-based animal health products for companion animals and livestock in Poland.
The agreement with Polvet Healthcare Teodorowski Spolka Jawna broadens Creso Pharma’s footprint in Europe and also marks the company’s first entry into Eastern Europe.
Under the agreement, Polvet will distribute Creso Pharma’s animal health range including anibidiol(R) granules hemp flour-based, oils for pets and anibidiol(R) hemp flour-based for for large companion animals and livestock.
These anibidiol(R) product lines are aimed at the management of stress and improved well-being of pets and livestock.
New commercial relationship
Creso Pharma’s Swiss International Operations CEO Jorge Wernli said: “We are very proud to announce this new commercial relationship with Polvet Poland, which has been operating in animal and human health for over a decade, representing a perfect fit for both companies to expand operations into the Polish market.
“This is a key milestone entry into a growing economy and a first step to strengthen Creso’s presence in Eastern Europe.
The agreement covers several Creso Pharma products including:
- anibidiol(R) 8 ;
- anibidiol(R)500 ;
- anibidiol(R) dogs treats ;
- anibidiol (R) EQUI ; and
- anibidiol(R) SWINE
Targeting established network
The Polvet group has been in operation since 2008 and has an established network across Poland and the group distributes, sells and commercialises its animal health products via its own e-commerce channels online shop, besides selling directly to hospitals, clinics and veterinarians.
Polvet plans to target its established wholesale and retail network to drive uptake.
The initial term of the agreement is one year and will automatically renew unless either party notifies the other of their decision to not renew the agreement within 90 days before the expiry of the initial or renewal term.
If both parties are not able to enter into a formal commercial agreement on or before November 2021, the LOI will automatically terminate.
Poland provides a large opportunity for Creso Pharma as it has a strong domestic consumer population of 38 million and is one of the largest pet markets in the Central-Eastern European region.
The Polish animal health market more broadly is substantial and based on 7.7 million dogs, 6.6 million cats and 11 million swine.