Canopy Growth to Acquire Beckley Canopy Therapeutics to Advance Medical Cannabis-Based Therapeutics

On August 12, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that the biopharmaceutical company Canopy Growth Corporation (Canopy Growth) announced the acquisition of Beckley Canopy Therapeutics (Beckley Canopy), with the transaction expected to be completed within the next two months. No financial terms of the acquisition have been disclosed.

Beckley Canopy, established in January 2018 and headquartered in Oxford, UK, is a biopharmaceutical company. Jointly founded by the UK-based Beckley Foundation and Canopy Growth, the company primarily focuses on developing health supplements and pharmaceutical formulations based on cannabis. Currently, Beckley Canopy has made significant research progress in cancer pain relief, opioid-sparing analgesia, and smoking cessation therapies.

Clinical demand for medical cannabis has been steadily increasing. According to CNBC, sales of medical marijuana in North America reached $6.7 billion in 2016, a 30% year-on-year increase, and are projected to reach $20.2 billion by 2021. Relevant clinical trials have demonstrated that cannabis-based medications exhibit certain efficacy in treating various mental and physical disorders; however, due to the lack of rigorous clinical trial data, cannabis therapy remains restricted.

Beckley Canopy brings together outstanding pharmaceutical researchers from the Beckley Foundation and Canopy Growth. Following the acquisition, the company’s drug development platform will support Canopy Growth’s cannabis-based pharmaceutical research initiatives, advancing the development of cannabis medicines in Europe and providing patients with more treatment options.

Canopy Growth, established in 2014 and headquartered in Ontario, Canada, is a diversified producer of medical cannabis. The company primarily offers cannabis-based pharmaceuticals in various forms, including tablets, granules, and soft capsules, as well as cannabis production equipment. Canopy Growth operates in more than a dozen countries across North America and is the first federally regulated, publicly traded cannabis producer in the United States. The company is listed on both the Toronto Stock Exchange and the New York Stock Exchange.

Spectrum Therapeutics, a wholly-owned subsidiary of Canopy Growth, is dedicated to researching medical cannabis and enhancing its therapeutic efficacy to meet patients’ medical needs. To date, Canopy Growth has invested millions of dollars in the development of medical applications for cannabis.

Canopy Growth operates 11 Good Manufacturing Practice (GMP)-certified cannabis production facilities, with a total area exceeding 4.7 million square feet. The company has established globally renowned cannabis brands, Tweed and Tokyo Smoke, to provide customers with high-quality cannabis products. In addition, Canopy Growth has formed long-term partnerships with other cannabis producers and suppliers, including DNA Genetics, Green House Seeds, and Constellation Brands.

Mark Zekulin, CEO of Canopy Growth, stated, “This acquisition will solidify Canopy Growth’s leadership position in the medical cannabis sector and help us accelerate the development of novel cannabis-based formulations to expand our scale and pharmaceutical market presence. We are delighted to collaborate with the Beckley Canopy team to provide high-efficacy, cost-effective medications to patients worldwide.”

(Compiled by Xu Xiaoxue)