Canadian Pharma Company To Acquire Israeli Medical Cannabis Firm Therapix Biosciences

Therapix Biosciences, an Israeli medical cannabis pharmaceutical company, has entered an agreement to be acquired by Canadian firm FSD Pharma to create “a medical cannabis industry innovator focused on the research and development of advanced cannabinoid treatment,” the companies said in a statement this week.

Therapix develops cannabinoid-based drugs, creating a unique formulation of a tablet for sublingual administration. The tablet is currently undergoing trials, and has the potential to treat impairments in cognitive functioning, such as Alzheimer’s and Tourette’s syndrome.

The company’s shareholders will received $48 million in stock once the transaction with FSD Pharma is completed. The companies are set to enter a definitive agreement over the next month. The transaction is subject to the shareholder approval of both parties and additional pre-conditions to be met prior to closing the transaction some three months after a definitive agreement.

“The intended acquisition of Therapix Biosciences at this time is a pivotal step in the evolution of our company by entering the high-value medical cannabis market. In addition to growing products for the direct to consumer retail cannabis market in Canada, we are now developing a new class of novel cannabinoid-based treatments for several central nervous system disorders, including chronic pain, fibromyalgia, irritable bowel syndrome and several other disease areas,” said Dr. Raza Bokhari, Director of FSD Pharma and Chairman of the M&A committee.

Dr.Ascher Shmulewitz, chairman and interim CEO of Therapix, stated, “Our research at Therapix is focused on a multifaceted, clinical drug development program that is poised to potentially yield novel, breakthrough therapeutic discoveries to benefit mankind and medicine in ways we have never before seen. We are excited to join FSD Pharma to be part of one of the fastest growing, most forward-thinking companies in this sector.

Professor Raphael Mechoulam, the “Godfather of medicinal cannabis,” who co-discovered “the entourage effect” of the endocannabinoid system, and is Chairman of the Therapix Scientific Advisory Board, commented, “I hope this proposed transaction will help unlock the full potential of the endocannabinoid system within the human body in enhancing quality of life and improving treatment outcomes.”