Message to our existing shareholders, from the CEO's of the two companies:
New Team Spirit: CannScience and HydRx make it official!
Two companies on the frontier of the cannabinoid biopharmaceutical industry are merging to form Scientus Pharma Inc, poised to be far more than the sum of its parts.
It happened by chance. Two scientists working on two entirely different lab projects at UHN (University Health Network) in Toronto discover each other's work, only to find they share much in common. That simple introduction sparked a chain reaction that brings us to where we are today.
On behalf of both CannScience and HydRx Farms, we are thrilled to announce that our two companies have merged to create something altogether new, a brilliant hive of innovation with a mandate to fast track medicines and therapies to market in the rapidly growing cannabinoid biopharmaceutical industry.
For this, we thank our scientists; Dr. Lakshmi P. Kotra and Dr. Hance Clarke who appeared to know from the start our two companies could be a perfect fit, like two puzzle pieces snapping into place.
Their logic is airtight: On one side of the equation, CannScience brings a pipeline of biopharmaceutical product development and IP to the table, while on the other, HydRx offers both a state-of-the-art laboratory infrastructure and critical GMP compatible manufacturing facilities to bring those concepts to market.
Both companies are Licensed Dealers (LD) under the Controlled Drug Substances Act. CannScience (through its service agreement with UHN) was the first to receive the license in December 2015. HydRx received its license in October 2016, but with what is thought to be the largest scale LD approved by Health Canada.
Essentially, our new partnership will have the bandwidth to accelerate ideas from inception to R&D, and from manufacturing to commercial distribution with the LD status to undertake the widest scope of activities on the largest possible scale.
To reflect the company's market leading scientific base, it is rebranding as Scientus Pharma Inc. Now with the full team of scientists and senior management in place, we're moving quickly on the path to accelerate innovation to market. Together, the companies have access to a multi-million dollar discovery lab facility at UHN and a 45,000 sq ft commercial scale facility in the GTA.
For the shareholders of both respective companies, it's a moment to step back and celebrate a convergence with massive upside potential.
The amalgamation of CannSci and HydRx, continuing forward as Scientus, brings together world leaders in the basic and clinical science of cannabinoids and the endocannabinoid system. The gap in health care for individuals utilizing medical cannabinoids is sizeable but with these companies now aligned, this gap will close quickly to help optimize patient care within institutional/ hospital settings and beyond.
Cannsci: Timing + Opportunity
In the race to commercialize, timing is everything. From our vantage point, we estimate this merger allows us to create and sustain a 12-18 month headstart with HydRx offering everything we need to actualize and scale up our production capabilities.
We've already filed a patent with the technology to exponentially speed up the cannabinoid extraction process and reduce reagent costs. What currently takes a day to accomplish, will soon be possible in under an hour.
At Cannsci, our first two innovative product prototypes are already in the pipeline. We are filing our first two patents and expect to file two more in 2017. We hope to be generating commercial revenues by the mid part of this year. Our lead product is a Rapidly Dissolving Sublingual Tablet (RDST) in solid dose form that ensures consistent and reliable dosing despite the innate variability in a phyto extract. We are also working on drug/device combinations and different forms (sustained release, delayed release) of capsules.
HydRx: Infrastructure + Innovation
Build it and they will come. HydRx had the foresight to construct one of the most advanced production facilities in Canada. With a 45,000 sq ft base of operations in Whitby, Ontario, we are leading edge in terms of a complex infrastructure equipped with all relevant technologies, equipment, security and safety protocols, as well as complete production and distribution efficiency.
This commitment to not only meet, but surpass GMP compliancy is part of what enabled HydRx to secure the critical approval as a Licensed Dealer (LD) from Health Canada. We are now one of the few companies in this emerging industry to be able to sell and distribute cannabinoid based products in medicinal forms other than dried and oil extracts. It gives our newly merged entity a serious advantage over the competition.
Scientus: Future Forward
The merged company is being branded under the Scientus Pharma name, reflecting its commitment to science based, safe, innovative and effective dosing forms. Without a doubt, our next-gen company is supremely well positioned to meet the future for naturally sourced and synthetically produced pharmaceutical products:
In the short-term, we see immediate opportunities to create value through new product development, innovative formulation and dosing solutions. By providing pharmaceutical grade product with standardized metered dosing, we hope to bring a new level of safety to the market in such a way to address the concerns expressed by health care providers who prefer not to recommend smoked or vaporized products to their patients.
In the medium term from three to seven years out, our plan is to better refine the cannabinoid extract as well as explore the potential of new cannabinoid compounds yet untapped. Eventually, we will be developing traditional synthetic compounds targeting the endocannabinoid system.
We are confident the entire sector of biopharmaceutical Cannabinoid-based medicines and therapies is just starting its upward trajectory. Given the combined strength of our new team, organization, and infrastructure, we look forward to leading it in Canada and beyond as a trusted source of scientific data, medicine, and therapies for many years to come.
Har Grover, CEO CannScience Innovations Inc.
Trevor Folk, CEO HydRx Farms Ltd.
For information on the merger, click here to see press release.
For information on the underlying science, click here.
For information on the combined teams, click here.
Please check back in the weeks and months ahead to read about plans for product commercialization and exciting company branding developments.