Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) (“Clever Leaves” or the “Company”), a leading multi-national operator and licensed producer of pharmaceutical-grade cannabinoids, announced today that it has entered into a three-year “take or pay” partnership agreement with Entourage Phytolab, a rapidly growing pharmaceutical cannabis research and development company in Brazil. Clever Leaves will be paid approximately US $11.4M over the term of the agreement to supply certain finished products for distribution through the pharmaceutical and the compassionate care markets in Brazil. In a second agreement, Clever Leaves will also provide active pharmaceutical ingredients (APIs) for proprietary formulations of Entourage. Supply of the finished products will commence in January 2021, with the APIs also targeting Q1 of 2021.
Entourage Phytolab, a leading research and development cannabis company with a strong reputation in Brazil, develops registered, safe and effective drugs to increase patients’ access to the therapeutic potential of cannabinoids and will use Clever Leaves’ API in its first botanical drug candidate. According to data and research company, New Frontier Data, Brazil represents the largest addressable market in Latin America with a population of 210 million and a rapidly growing patient network for medical cannabis.
“With their regulatory expertise in Brazil as well as their clinical research experience, Entourage Phytolab is an ideal partner and represents an incredible opportunity for Clever Leaves to distribute cannabinoid products throughout Brazil,” said Kyle Detwiler, CEO of Clever Leaves. “We expect our robust product development expertise and EU GMP certified facilities, which satisfy the Brazil National Health Surveillance Agency’s (ANVISA) strict quality standards, positions us to enable our partners to capitalize on growing patient demand as the Brazilian cannabis industry begins to accelerate.”
“Entourage Phytolab started its activities in 2015 and is a leader in the research and development of CBD and THC based medicines globally,” said Caio Santos Abreu, Founder and CEO of Entourage Phytolab. “After five years of R&D, we are launching our first products in 2021 and the partnership with Clever Leaves is an important step for us to build the best portfolio of cannabis-based medicines in the country.”
“This agreement expands Clever Leaves’ presence in one of the largest markets in South America as we continue to establish formidable commercial partnerships around the world,” said Andrés Fajardo, President of Clever Leaves. “Equipped with high quality products, Entourage Phytolab has the potential to reach thousands of patients across the country through their market access and capabilities, and these products will set the standard for quality and value for Brazilian patients.”
