Total
0
Shares
ECS Botanics (ASX:ECS) - Founder & Managing Director, Alex Keach
Founder & Managing Director, Alex Keach
Source: ECS Botanics
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • ECS Botanics MC, a subsidiary of ECS Botanics (ECS), enters a collaborative supply and toll processing agreement with Sun Pharma
  • Sun Pharma is an Australian-based subsidiary of Sun Pharmaceutical Industries, which is the fourth-largest speciality generic pharmaceutical company in the world
  • Under the agreement, Sun Pharma will extract ECS’ medicinal cannabis biomass to produce good manufacturing practice resin for use in medicinal cannabis products
  • This agreement allows ECS to maintain its asset model and encourage customers to purchase affordable and locally grown and manufactured medicinal cannabis oils
  • ECS is down 2.94 per cent on the market with shares trading at 3.3 cents

ECS Botanics MC, a subsidiary of ECS Botanics (ECS), has entered a collaborative supply and toll processing agreement with Sun Pharma.

Sun Pharma is an Australian-based subsidiary of Sun Pharmaceutical Industries which is the fourth-largest specialty generic pharmaceutical company in the world.

Under the agreement, Sun Pharma will extract ECS’ medicinal cannabis biomass to produce good manufacturing practice (GMP) resin.

ECS has agreed to supply between 600 kilograms to 1750 kilograms of cannabis biomass over a five-year period, with Sun Pharma’s actual biomass requirements not yet certain.

Additionally, Sun Pharma has agreed to purchase, and ECS will supply, no less than 55 per cent of Sun Pharma’s annual cannabis biomass requirements.

Based on indicative volumes, this equates to total revenue between $6.6 million and $9.8 million for the five years.

Sun Pharma will also install a carbon dioxide extractor at its Port Fairy pharmaceutical facility to produce GMP decarboxylated resin for ECS at a reduced rate.

The resin produced will be used in the formulation of medicinal cannabis products.

This agreement allows ECS to maintain its asset model and encourage customers to purchase affordable and locally grown and manufactured medicinal cannabis oils.

Managing Director Alex Keach commented on the agreement.

“This arrangement positions ECS Botanics to capture a greater share of the existing medicinal cannabis oil market in Australia and overseas,” Mr Keach said.

“Furthermore, partnering with a globally significant company is encouraging for ECS Botanics’ major expansion plans to drive revenue growth and continually lower production costs.”

ECS was down 2.94 per cent on the market, with shares trading at 3.3 cents at 11:28 am AEDT.

ECS by the numbers
More From The Market Herald
Advanced Human Imaging (ASX:AHI) - CEO, Vlado Bosanac

" Advanced Human Imaging (ASX:AHI) advances Meta-Twin for digital health assessments

Advanced Human Imaging (AHI) has announced the advancement of its Meta-Twin offering, a real-time, on-screen digital health assessment.
The Market Herald Video

" Security Matters (ASX:SMX): Addressing fashion’s $40-billion problem

Australian company Security Matters is taking the lead in helping the fashion industry’s attempts to address a $40-billion problem.
Adriatic Metals PLC (ASX:ADT) - CEO, Paul Cronin

" Adriatic Metals (ASX:ADT) releases silver assays for Rupice Mineral Resource

Adriatic Metals (ADT) has released silver assays for its wholly-owned Vares Silver Project in Bosnia and Herzegovina.
Turaco Gold (ASX:TCG) -Managing Director, Justin Tremain

" Turaco Gold (ASX:TCG) receives results from Bouake North

Turaco Gold (TCG) has received results from its recently completed auger drilling program at the Bouake North prospect in Côte d’Ivoire.