Regulation is among the factors inhibiting the flow of capital to cannabis innovation.
Institutions are afraid to invest, and “big pharma is not coming in as we would like to see happen.”
That is according to Aras Azadian, who joined the Benzinga Cannabis Capital Conference in Miami Beach on Thursday to talk about driving biopharmaceutical advancements of plant-derived, cannabinoid-based products.
Azadian is the CEO at Avicanna Inc (OTCQX:AVCNF), a global and vertically integrated pioneer in the development and commercialization of cannabinoids exclusively for the medical, health, and wellness market.
Here’s more on what Azadian had to say about Avicanna's biopharmaceutical advancements in the cannabis space.
Context: Founded in 2016 and headquartered in Canada, Avicanna is a biotechnology company focused on providing the global marketplace with advanced natural cannabinoid solutions through an evidence-based approach.
The firm researches cannabinoid compounds at the Johnson & Johnson (NYSE:JNJ) JLABS Innovation Centre, in collaboration with the Leslie Dan Faculty of Pharmacy, at the University of Toronto.
Avicanna supplies its own cosmetic, medical and pharmaceutical products with a high-quality API through its sustainable cultivation operation in the foothills of the Sierra Nevada of Santa Marta in Colombia.
The Sierra Nevada microclimate and fertile lands offer the ideal environment to cultivate cannabis and hemp cultivars, which when combined with proprietary processing, ensures products meet Health Canada, U.S., and E.U. Pharmacopeia standards including those for pesticides, heavy metals, aflatoxins, microbial testing, residual solvents and cannabinoid ratios.
Once tested, the API, custom bulk formations and white label finished products are distributed for cosmetic, medical and pharmaceutical applications globally.
Big Pharma Deal: Benzinga’s Javier Hasse, who moderated the session, asked Azadian about his company’s license and agreement with an established South American pharmaceutical company to commercialize up to four of Avicanna’s cannabinoid-based preparations.
“The Brazilian deal was very important to us,” Azadian said. “It’s a big validation.”
With the deal, Avicanna is carving a unique place within the medical and pharmaceutical side of the industry at an international level.
Avicanna will license intellectual property and supply finished pharmaceutical products starting with a proprietary 10% cannabinol oral preparation.
Avicanna could earn up to $1.03 million in initial licensing fees.
Partners: Hasse then asked about Avicanna’s partnerships with brands like NBA veteran Al Harrington’s Viola.
Azadian says that Avicanna is “the science” to Viola, a brand leading the charge on minority participation and social equity in the U.S. cannabis industry.
Through the agreement, Avicanna will manage the commercialization of Viola-branded products in Canada. Viola products will include specific formulations developed by Avicanna.
“It’s an incredible partnership in which two CEOs are focused on social equity, minority representation and I’m helping them take Viola re+Play, globally,” Azadian said.
“I saw Al was really trying to do this right way and he saw we do things the right way when it comes to the science.”
Bonus Points: “What makes you different from regular cannabis companies?” Hasse asked.
“It’s the science,” Azadian replied.
Avicanna’s mission is to produce products that are actually efficacious. Once regulatory hurdles pass, the brand’s depth and breadth of product, as well as reach, will better be recognized by investors.
“We’re at a massive inflection point,” Azadian said.
Avicanna CEO Aras Azadian speaks Thursday at the Benzinga Cannabis Capital Conference. Photo by Dez Smith.
