Cannabis firm Canopy Growth Corporation (CVE:CGC) has agreed a deal with São Paulo-based Entourage Phytolab to develop medicinal products in Brazil.
The deal will see the two firms work together to develop innovative cannabis-based medical products for the Brazilian and international markets.
“Brazil represents a large emerging market, and has a favourable regulatory framework for medical cannabis products as well as competitive clinical trial and production costs,” said Canopy chairman and chief executive Bruce Linton.
Entourage already has permission from ANVISA – the Brazlian health surveillance agency – for the research and development of cannabis-based therapeutics.
The JV will take on the name Bedrocan Brazil as Canopy already has a North American subsidiary called Bedrocan Canada.
The agreement will allow the JV to hold the exclusive local rights to use the “world-leading” Bedrocan brand.
Canopy says that Bedrocan Brazil will import cannabis products from Canada or the Netherlands initially, with a view to establishing domestic cultivation facilities in Brazil in the future.
Shares in Canopy were unchanged at C$2.67.