Tilray Inc. (NASDAQ: TLRY) shares made a solid gain on Tuesday after the company announced that it entered a global agreement to collaborate with Sandoz, a subsidiary of Novartis A.G. (NYSE: NVS). The agreement is to increase the availability of high-quality medical cannabis products across the world.
Ultimately, this is an evolution of an existing alliance between Tilray and Sandoz, and the agreement represents the intentions of the two companies to jointly operate in jurisdictions where cannabis is or will be approved for medical purposes.
This agreement builds on Tilray’s track-record as a company committed to making pharmaceutical-grade medical cannabis products.
A few of the forms of collaboration mentioned in the agreement included the following:
- Sandoz AG may support the global commercialization of Tilray’s non-smokable/non-combustible medical cannabis products;
- Tilray and Sandoz AG may co-brand certain non-smokable/non-combustible products;
- Tilray may supply non-smokable/ non-combustible medical cannabis products and license rights to and from Sandoz AG in relation to such products; Both companies may also partner to leverage best-in-class knowledge to educate pharmacists and physicians about medical cannabis products;
- Tilray and Sandoz AG may collaborate to develop new innovative medical cannabis products.
Brendan Kennedy, Tilray CEO, commented:
This agreement represents a major milestone in the movement to provide access to safe, GMP-certified medical cannabis to patients in need across the world. Tilray is a global company and we’re thrilled to build upon the success and momentum from our existing agreement with Sandoz Canada by taking our partnership global. Sandoz AG will be a valuable partner as we work together to improve access to the highest quality medical cannabis products in countries all over the world.
Shares of Tilray were last seen up about 12% at $73.60 on Tuesday, in a post-IPO range of $20.10 to $300.00. The consensus analyst price target is $140.00.