Next Investors logo grey

Creso forges important partnership with high profile Swiss Pharma group


Published 27-OCT-2016 11:47 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Shares in Creso Pharma (ASX: CPH) have soared since listing on the ASX last week, hitting a high of 39 cents, representing an 95% increase relative to the IPO price of 20 cents.

There have been a number of factors contributing to the strong share performance including positive sentiment towards stocks leveraged to cannabis derived therapeutic grade products. Where CPH has a point of difference on the ASX is its focus on the nutraceutical market.

However, it is not recommended that investors use historical share price performances alone to make an investment decision. Seek tailored professional financial advice before making an investment in a speculative stock such as CPH.

Today’s announcement regarding the forging of an important distribution relationship with a Swiss pharmaceutical group is arguably the most significant development in CPH’s short history as an ASX listed company, and has the potential to provide substantial share price momentum.

Finfeed flagged a potential game changer for CPH earlier in the week when it pointed to the prospect of the securing of a distribution agreement and/or binding letters of intent with European and North American partners.

This has duly unfolded with CPH announcing today that it has signed a binding Letter of Intent (LOI) with Swiss pharmaceutical firm, Streuli Pharma AG for the commercialisation of its proprietary first human nutraceutical product based on the INNutri Soft GumsTM technology in the Swiss market.

Importantly, the partnership will facilitate CPH’s products being added to Streuli Pharma’s distribution network.

Next Investors Image

To provide an insight into the importance of this relationship, Streuli Pharma has been established for 150 years and currently manufactures over 150 million tablets and capsules per annum, as well as 4 million ampoules and various other galenic forms such as ointments gels and suppositories. The group’s products are manufactured, inspected and distributed in Switzerland, an important “reference market” known for its stringent quality, safety and performance requirements around the world.

With regard to the nutraceutical therapeutic products based on INNutri Soft GumsTM, they will use an innovative and proprietary delivery technology allowing for an optimal bioavailability and absorption of the cannabis and hemp derived phytocannabinoids into the body – so that their full therapeutic benefit is achieved.

Creso Pharma Chief Executive and co-founder, Doctor Miri Halperin Wernli highlighted that the product will be easier to ingest than regular gelatin based products as they are starch based and devoid of animal ingredients, and are around 60% cheaper than gelatin capsules.

Another advantage is that they will meet the needs of consumers with a broad range of dietary requirements, including vegan, halal and kosher, as well as gluten and lactose free.

The nutraceutical market is expected to reach US$205 billion by 2017, indicating the potential upside that this commercial relationship could deliver. Furthermore, the nutraceutical ingredients market is forecast to reach US$34 billion by 2018 with the Swiss market alone estimated to be worth US$400 million.

Management highlighted that CPH is pursuing further commercialisation partnerships for the sale of this product across other regions of Europe including the Benelux countries, Italy and Spain, as well as in Canada, Latin America and the Gulf states.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.