Marijuana company Tilray Canada Ltd. has signed a new agreement to collaborate with Sandoz AG, part of the Novartis pharmaceutical group.
The companies say they will work together to increase the availability of high quality medical cannabis products across the world.
They say it’s an evolution of an existing alliance between Tilray and Sandoz Canada. Financial terms weren’t disclosed.
Tilray Inc. shares were up eight per cent or US$5.35 at US$71.24 at 10 a.m. ET on the Nasdaq market, but remained well below their 2018 high of US$300 set on Sept. 19.
Interest in publicly traded cannabis companies has been stoked by Canada’s legalization of recreational use of marijuana and its plan to make consumable forms of the drug legal next year.
READ MORE: Nanaimo’s Tilray Inc. briefly the world’s largest cannabis company
In addition, there have been a number of partnerships and tie-ups between cannabis companies and more established producers of consumer goods including beer makers Molson Coors and Constellation Brands, and cigarette maker Altria Group Inc.
Under the new agreement Tuesday, Sandoz may support Tilray’s commercialization of non-smokable and non-combustible medical cannabis products and work together on developing new products.
They may also partner to educate pharmacists and physicians about medical cannabis products.
Tilray Canada is a subsidiary of Tilray Inc., which is which is listed on the Nasdaq stock market and has operations in Australia, New Zealand, Germany, Latin America, Portugal and Canada.
In Canada, Tilray’s operation in Nanaimo, B.C., is licenced to produce dried cannabis and cannabis extracts, including both bottled oil and capsules, for medical purposes in Canada.
The company also has a licenced facility in Enniskillen, Ont., that it intends to use to service the adult market for dried cannabis and it’s seeking a licence for a processing facility in London, Ont.
The Canadian Press