Attempting to enter the CBD market, Perrigo has closed a long-term supply agreement and made a strategic investment with Kazmira. Kazmira is one of the leading suppliers of THC-free CBD products in the US and headquartered in Watkins, Colorado. The CBD market is rapidly growing and evolving. Perrigo decided to join as a result of the consumers’ preference for all-natural remedies. The company’s vision is:
“To make lives better by bringing quality, affordable self-care products that consumers trust everywhere they are sold.“
What did the Partnership Involve?
The minority investment Perrigo made in Kazmira comes as a first phase in the partnership between the 2 companies. Next, Perrigo and Kazmira are going to collaborate for laboratories and facilities at Kazmira to respect the current Good Manufacturing Practices (cGMP) when it comes to producing THC-free CBD products. These products will be made from industrial hemp that Perrigo agrees it’s reliable and consistent. The partnership’s second phase will have Perrigo working for the launch of THC-free CBD products on many of the global markets, all while leveraging the supply agreement closed with Kazmira. Kazmira works exclusively for the store brand market in the US.
What Do Perrigo and Kazmira Reps Have to Say About the Partnership?
Talking about the newly closed partnership, Perrigo’s president and CEO said that:
“We believe that Kazmira’s deep understanding of CBD science, combined with Perrigo’s regulatory expertise and investment, allows us to lead the industry through the next phase of development of rigorous quality standards and proactive engagement with regulators. […] We are excited to partner with the team at Kazmira, who share our passion for developing a science-based, regulatory approach to unlock the full potential of this emerging industry. This collaboration offers a great opportunity to enhance profitable growth for our shareholders over the long-term.”
On the same matter, Kazmira’s Co-CEOs, Pulak Sharma and Priyanka Sharma, commented:
“We are proud to launch a strategic relationship with Perrigo, the industry leader in delivering safe and effective OTC self-care products. As we continue to grow our business, we look forward to leveraging Perrigo’s regulatory and manufacturing expertise in concert with Kazmira’s proprietary technology for large-scale biomass processing and our established reputation for producing and marketing the highest quality THC-free CBD products.”
Aside from the supply agreement, Perrigo will also have to acquire about 20% Kazmira equity stake for $50 million. A transaction of $15 million has already been processed, the next $35 million is set to be paid within 18 months from now.