The potential market for medical cannabis is huge. Enorama Pharma's management believes that there will be a great need for serious cannabis products in the future. Enorama is currently working on prototype development of a cannabis chewing gum containing CBD that is primarily expected to be registered as "Novel Food" in the EU. Enorama has already written a "Letter of Intent" with a Greek company that wants to sell the product in its region.
The global market for medical cannabis is estimated to reach 55-60 billion USD by 2025, and cannabis used for "recreation" is not even included in these numbers. Enorama Pharma has followed the explosive market development in this segment for a long time and there is no longer any doubt that medical cannabis has come to stay in both Europe and North America.
Although the trend towards liberalization is clear, increasing requirements are placed on the products that are allowed on the market. The increasing requirements are positive for Enorama Pharma, as the company has medical and regulatory expertise and offers quality products which are guaranteed to deliver the active substance.
Enorama Pharma's management believes that there will be a great need for serious cannabis products in the future; products that are regulated and that actually release the active substance and have a proven medical effect. The interest in oral formulations such as chewing gum is also increasing, as smoking with uptake through the lungs is increasingly considered unhealthy. When you chew gum, the uptake is in the oral cavity, which compared to edible products, provides greater bioavailability for the active substance. In addition, absorption in the oral cavity is faster, which also provides a faster effect.
Enorama Pharma has currently chosen to develop a cannabis chewing gum with CBD, which is primarily expected to be registered as "Novel Food" in the EU. In the long term, the possibility of developing a medically registered product is also evaluated. But this requires significantly greater investments in both product development and clinical studies.
Enorama Pharma is currently working in its own laboratory in Malmö to develop a prototype chewing gum, based on the company's ChewMed® technology. Prototypes are expected to be ready for proof-of-concept studies within 5-7 months. Thereafter, the timetable for launch in Europe, North America and other potential cannabis markets can be defined and planned.
In the matter of deciding where the ultimate manufacturing place will be, the company intends to closely monitor market development and legislation in the near future. We expect to have all documentation ready for evaluation by the end of 2019.
Enorama Pharma's business model for cannabis products will, as for the company’s nicotine products, be a "business-to-business" model. Enorama Pharma will manufacture and sell the products to strategic partners with strong brands, the right distribution channels and necessary, local expertise in sales and marketing. Enorama is attracting great interest and feels that there is a great future for serious cannabis products throughout Europe and the rest of the world. A first Letter of Intent has already been signed with partner PromoPharma S.A in Greece. PromoPharma S.A will be an important strategic partner in the future as the company has sales and representation in several neighboring countries in the region. Further discussions with partners in other countries are ongoing.