Perrigo is entering the cannabidiol (CBD) market through a minority equity investment and distribution partnership with a Colorado supplier.
The Dublin-based drugmaker — which has its North American headquarters in Allegan — said it is entering the CBD market through a strategic investment in and long-term supply agreement with Watkins, Colorado-based Kazmira, a leading supplier of hemp-based CBD products free of tetrahydrocannabinol (THC), the main psychoactive compound in cannabis.
Perrigo will acquire an about 20% equity stake in Kazmira for $50 million with $15 million paid upon close of the transaction and the balance within 18 months.
“Science-based natural products are one of Perrigo’s five core growth pillars, and THC-free CBD products fit perfectly into our self-care strategy,” said Murray Kessler, president and CEO of Perrigo.
“Until now, this emerging industry has lacked the regulatory expertise necessary to bring a trusted supply of CBD to market. … We believe that Kazmira’s deep understanding of CBD science, combined with Perrigo’s regulatory expertise and investment, allows us to lead the industry through the next phase of development of rigorous quality standards and proactive engagement with regulators.”