Cronos Group Acquires Apotex Fermentation Facility to Expand Cannabinoid Production Capacity

On July 15, 2019, VCBeat (WeChat ID: vcbeat) learned that cannabis producer Cronos Group announced the acquisition of a manufacturing facility from Apotex Fermentation, a subsidiary of the Canadian pharmaceutical company Apotex, for the production of premium cannabis. No financial terms of the acquisition were disclosed.

It is reported that the acquired factory is located in Winnipeg, Canada, covering a total area of 84,000 square feet. As Cronos Group’s production and fermentation base for cannabinoids, the facility has been certified under Good Manufacturing Practice (GMP) standards, featuring advanced fermentation and production equipment, as well as laboratories dedicated to microbiology, organic chemistry, and analytical chemistry.

Apotex, founded in 1974 and headquartered in Toronto, Canada, is a global pharmaceutical company and the largest generic drug manufacturer in Canada. The company operates manufacturing facilities in multiple countries, including Canada, India, Mexico, and China, and exports pharmaceutical products to more than 115 countries and regions. Apotex specializes in drug research and development, manufacturing, and distribution, providing high-quality, affordable medications to millions of patients worldwide.

Apotex currently manufactures more than 300 generic drugs, and its Clinical Operations facility is one of the highest-quality research facilities among similar companies in North America. Apotex’s Toronto-based plant spans over 30,000 square feet and can accommodate more than 100 drug trial protocols. This facility is used for clinical trials to conduct bioequivalence (BE) testing comparing the company’s investigational drugs with brand-name drugs currently on the market. BE testing is a critical step in the development of synthetic generic drugs.

Over the 25 years since its establishment, Apotex has partnered with major charitable organizations, donating more than US$11 million, making it the largest corporate donor in the Canadian pharmaceutical industry. The company collaborates with Health Partners Canada International (HPIC) to provide medical services to vulnerable populations. In 2016, Apotex was named a “Top Product Donor” by HPIC. During the 2017 hurricane disasters, Apotex donated medicines worth over US$600,000 through charitable organizations such as HPIC, Dispensary of Hope, and Direct Relief to assist affected communities. In the academic sphere, Apotex launched the APOcampus initiative, donating US$23 million to universities across Canada and providing students with internship and full-time employment opportunities.

Cronos Group, founded in 2013 and headquartered in Toronto, Canada, is an innovative cannabis research and development company. The company is dedicated to the extraction and study of cannabinoids, leveraging advanced technologies to develop related products and secure intellectual property rights. Cronos Group’s flagship brands include PEACE NATURALS, COVE, and Spinach. The PEACE NATURALS platform is used to produce premium-quality cannabis and build a global medical cannabis market to promote health therapies. This platform emphasizes the integration of dietary therapy with cannabis-assisted treatment.

Previously, Cronos Group partnered with Ginkgo Bioworks to jointly develop cannabinoid-related products. Following the acquisition of Apotex’s manufacturing facilities, Cronos Group is poised to expand its cannabis cultivation scale and enhance product production efficiency.

Cronos Group CEO Mike Gorenstein stated, “This acquisition will optimize our cannabis fermentation technology and enhance product manufacturing capabilities to achieve scaled-up cannabis production. We will collaborate with partners such as Ginkgo to jointly advance biomanufacturing technologies and drive continuous innovation in the cannabis industry.”

(Compiled by Xu Xiaoxue)