AFT Pharmaceuticals (ASX.AFP) and New Zealand medicinal cannabis company SETEK have signed a memorandum of understanding (MoU) to work together in the research, development and commercialisation of medicinal cannabis products.
AFT Pharmaceuticals Chief Executive Dr Hartley Atkinson said the MoU seeks to combine, and take advantage of, AFT’s expertise in pharmaceutical development, commercialisation and distribution and SETEK’s expertise in cannabis cultivation and the extraction and processing of pharmaceutical grade cannabis compounds.
Earlier this year SETEK became the fourth New Zealand company to receive a license from that country’s Ministry of Health to cultivate cannabis for scientific and medical research. It is developing a 100% organic cannabis propagation, cultivation, processing and manufacturing facility at Rotokawa, near Taupo.
“Medicinal cannabis represents a sunrise industry in New Zealand and is an obvious addition to our broad portfolio of prescription and over the counter medicines,” Dr Atkinson said.
SETEK is on track to become a leading New Zealand producer of medical cannabis and cannabis extracts. It has recently acquired a cannabis genetics company and is working towards the construction of a new, state-of-the-art medical cannabis facility that is due to commence production next year.
“These assets coupled with AFT’s expertise in the commercialisation and distribution of pharmaceuticals have the potential to create a winning combination in New Zealand’s emerging medicinal cannabis sector.”
SETEK Chief Executive Mark Mees said Dr Atkinson and his team are recognised internationally for their capabilities in taking medicines through clinical trials, regulatory approvals and then successfully distributing and selling these products in New Zealand, Australia and further afield.
“This agreement envisages SETEK and AFT each playing to their strengths. We are looking forward immensely to working with AFT to bring our shared vision to life,” Dr Atkinson added.