The acquisition streak in the marijuana industry just got a bit longer. Canadian producer Canopy Growth (NYSE:CGC) announced it has reached a deal to fully acquire a research joint venture it co-founded in 2018.
That business is Beckley Canopy Therapeutics, described by Canopy Growth as an entity designed "to research and develop clinically validated cannabis-based medicines, with a strong focus on intellectual property protection." Canopy Growth disclosed neither the terms nor the price of its acquisition.
With the deal, Canopy Growth will also become the full owner of Spectrum Biomedical UK, an entity formed to distribute the company's medicinal cannabis products. Currently, Spectrum Biomedical UK is a joint venture between Canopy Growth and Beckley Canopy Therapeutics that was formed in January.
As for the core asset of the acquisition, Beckley Canopy Therapeutics will be fused with Canopy Growth's in-house research program. The aim, said Canopy Growth, is "to combine the best teams, programs and clinical work all under a single strategic plan."
Canopy Growth co-founded Beckley Canopy in early 2018 with U.K.-based think tank Beckley Research & Innovations. According to Canopy Growth, the joint venture's research has advanced understanding in three areas of pharmaceutical research: cancer pain, opioid sparing, and smoking cessation. Such projects are ongoing.
The buyout of the joint venture is the latest in a string of acquisitions made by Canopy Growth. Recently the company has focused on bulking up its portfolio in the medical cannabis field. As part of this strategy, in May it bought Germany's C3, a producer, distributor, and researcher of cannabinoid-based medications targeting the European market.
Canopy Growth also aims to have a global presence for its various products; it has focused on Europe in particular as an appropriate market. It believes that countries on the continent are evolving in the areas of public policy and patient access to medical marijuana and related products.
Canopy Growth's purchase of the portion of Beckley Canopy Therapeutics it didn't own already is subject to approval from the relevant regulatory bodies. The acquisition is expected to close within the next 60 days.
The company's shares did not move significantly on the news. On Friday, they closed up in price only marginally.