Perrigo Company Plc, an Irish–registered maker of private label over-the-counter pharmaceuticals, has partnered with Kazmira LLC of Colorado. The move will add CBD products to Perrigo’s selection of generic prescription pain, topicals, and sleep aids. Although 70% of Perrigo’s net sales come from the US, Perrigo is headquartered in Ireland for tax purposes. Irish sales of Perrigo products account for only 0.60% of net sales.
The company had its humble beginnings as L. Perrigo Company, founded in 1887 in Allegan, Michigan, by Charles and Luther Perrigo, who ran a local general store.
As well as the supply agreement, the company will acquire a 20% equity stake in Kazmira for a hefty $50 million with a generous $15 million paid upon closing the transaction. The remaining $35 million will be paid within 18 months.
Perrigo regularly engages in the acquisition, as well as the manufacture, and sale of generic prescription drugs, consumer healthcare products, and active pharmaceutical ingredients.
Perrigo is traded on both the New York and Tel Aviv stock exchanges.
Perrigo and Kazmira, a Winning Combination
During the last recorded quarter, Perrigo reported $1.3 billion in sales. Perrigo indicates that its minority equity investment is just an initial phase in the partnership. Eventually, Perrigo will launch CBD products in several global markets, with Kazmira as Perrigo’s exclusive CBD supplier in the U.S. market.
“We think that Kazmira’s profound understanding of CBD science, in combination with Perrigo’s investment and regulatory expertise, allows us to lead the industry. Perrigo will lead the CBD industry through the next phase of development with rigorous quality standards as well as proactive engagement with local regulators,” commented Perrigo CEO and President Murray S. Kessler.
Kazmira produces industrial scale, THC-free, broad-spectrum CBD oil, water-soluble CBD, and CBD Isolate. Kazmira derives its high-quality CBD from American-grown industrial hemp. Kazmira’s proprietary technology platform allows the company to produce a 90% concentration of CBD with no THC of any potency. All of Kazmira’s products are third-party tested and certified to be free of pesticides, heavy metals, and solvent residues. Kazmira exclusively sells its products as white label or wholesale.
Kazmira LLC Co-CEO Priyanka Sharma commented, “We look forward to leveraging Perrigo’s manufacturing and regulatory expertise in combination with Kazmira’s proprietary technology to process biomass on a larger scale.”
Likewise, Kazmira Co-CEO Pulak Sharma stated, “The transformational partnership between Perrigo and Kazmira will speed our improvement and expansion of our proprietary manufacturing technology. It will also bolster our investments in cannabinoid consumer education, science, and regulatory advancement as we solidify our position as a best-in-class cannabinoid company.”
Store-brand CBD coming soon
Perrigo plans to use Kazmira’s THC-free CBD products to launch the products globally, but particularly in the U.S. store brand market.
Perrigo CEO Kessler said, “Consumers and retail customers want CBD products and they deserve a reliable source of THC-free, broad-spectrum CBD they can trust. Whether it is the THC-free claim or a specific concentration of CBD, consumers must be able to trust the statements made on the label. We think that Perrigo can provide this to our US marketplace. We are thrilled to partner with the team at Kazmira; they share our passion for a science-based, regulatory approach to unlocking the full potential of this burgeoning industry. The collaboration offers a fantastic opportunity to heighten profitable growth for our shareholders over the long-term.”
While full-spectrum CBD has trace amounts of THC, broad-spectrum CBD maintains the maximum amount of cannabinoids while removing only the THC. Broad-spectrum CBD contains fewer cannabinoids and terpenes compared to full-spectrum CBD because many are lost during the removal of the THC. However, broad-spectrum CBD is an excellent choice for those who wish to avoid THC, such as people living in places where it is illegal, or who must pass drug tests for their employment.