Dr. Reddy's Laboratories and MediCane Health announce the launch of various medical cannabis products in Germany

• This launch of medical cannabis products is the result of an agreement signed between the two companies in 2021.
• Dr. Reddy's will be the exclusive distributor of several MediCane medical cannabis products in Germany.
• In addition, Dr. Reddy's and MediCane have signed a collaboration and co-financing agreement for a Phase II clinical trial of a therapeutic cannabis product designed to relieve the behavioral and psychological symptoms of dementia (BPSD). As part of the launch, Dr. Reddy's will hold exclusive sales and marketing rights for the product in Europe (excluding Russia and CIS countries).

AUGSBURG, Germany, VANCOUVER, British Columbia and HYDERABAD, India-(BUSINESS WIRE)-Dr. Reddy's Laboratories Ltd (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, together with its subsidiaries collectively referred to as «Dr. Reddy's») and MediCane Health Inc (together with its subsidiaries collectively referred to as «MediCane») today announced the launch of their therapeutic cannabis product in Germany.

Under a collaboration between Dr. Reddy's and MediCane having been initiated in 2021, MediCane will supply Dr. Reddy's with therapeutic cannabis products from its EU GMP-certified facility based in Portugal, while providing logistical and regulatory support. As the exclusive distributor of the products in Germany, Dr. Reddy's will provide access to MediCane's medical cannabis products under its own brand, supported by a dedicated field team able to provide healthcare professionals with training in the use of the products, as well as advice on the health insurance reimbursement process.

This launch marks MediCane's entry into the pharmaceutical sector of a major European market. For Dr. Reddy's, the launch reinforces its presence in the fast-growing German therapeutic cannabis market, a presence already strengthened by the company's recent acquisition of Nimbus Health GmbH, which specializes in the distribution, registration, sales and marketing of therapeutic cannabis.

With more than 83 million inhabitants enjoying extensive access to healthcare services, Germany already accounts for more than half of the current therapeutic cannabis market in the European Union, thanks to its advanced regulations and health insurance reimbursement of therapeutic cannabis in certain circumstances.¹. Demand for medical cannabis has increased in recent years following the legalization of medical cannabis by the German Parliament (Bundestag) in 2017. The therapeutic cannabis market in Germany is valued at around 122 million EUR with growth of around 25 % in 2021 compared to 2020, and a compound annual growth rate (CAGR) of around 55 % since 2017. Nearly 150,000 German patients benefit from therapeutic cannabis for their otherwise unmet health needs², according to various reports³, These include pain management, spasticity, anorexia, vomiting and depression.

Dr. Reddy's and MediCane have also signed an agreement to co-finance a Phase II clinical trial for a cannabis-based product designed to relieve the behavioral and psychological symptoms of dementia (BPSD). On completion of the trial, Dr. Reddy's will have exclusive sales and marketing rights for the product in Europe (excluding Russia and CIS countries). The parties plan to start clinical testing of the product in the second half of 2022. BPSD refers to the spectrum of non-cognitive, non-neurological symptoms commonly observed in dementia, such as agitation, aggression, psychosis, depression and apathy.

Patrick Aghanian, head of generics in Europe at Dr. Reddy's, said: «This collaboration with MediCane Health demonstrates Dr. Reddy's commitment to becoming a leader in the growing European therapeutic cannabis market. With MediCane, we are joining forces with a research partner that is both unique and differentiated in the field of therapeutic cannabis. We are very pleased with this strategic and multidimensional collaboration with MediCane, which is in line with our mission to accelerate access to therapeutic cannabis in order to meet patients» unmet needs and improve their quality of life."

Yossi BenAmram, co-founder and group CEO at MediCane, said: «This collaboration highlights MediCane's strategy of developing evidence-based medical products, and partnering with leading pharmaceutical companies, to maximize the potential of these medicines for patients. This collaboration is a very important step for MediCane, in the short, medium and long term, and we couldn't be more excited to be partnering with such a reputable and inventive company as Dr. Reddy's. Given MediCane's resources and know-how in agrotechnical and biological R&D, focused specifically on cannabis, and Dr. Reddy's proven sales, marketing and distribution capabilities, which offer broad geographic access in line with our strategy, coupled with powerful regulatory and R&D capabilities for generic drug development, I am convinced that this synergistic partnership will be able to play a prominent role among European decision-makers in the therapeutic cannabis market, in the near future.»

About Dr. Reddy's Laboratories:

Dr. Reddy's Laboratories Ltd (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is an integrated pharmaceutical company committed to providing affordable, innovative medicines for healthier living. Dr. Reddy's offers a portfolio of products and services including APIs, personalized pharmaceutical services, generics, biosimilars and differentiated formulations. Our main therapeutic areas are gastroenterology, cardiovascular medicine, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates worldwide. Our main markets include the USA, India, Russia and the CIS countries, as well as Europe. To find out more, visit: www.drreddys.com

About MediCane Health Inc:

Founded in 2019, MediCane's seed-to-consumer business model enables complete monitoring and control of cultivation processes, followed by medical and pharmaceutical R&D processes. This model includes genetic seed development, plant propagation and cultivation, manufacturing, pharmacological development, medical research, and distribution of final products to end-users. Our genetic bank contains a multitude of strains that are grown in our state-of-the-art greenhouses, then processed in GMP and cGMP-compliant post-harvest and manufacturing facilities. Finished products are distributed to end-users via a global network of B2B and B2C partners. MediCane's main markets include Israel, Europe and Australia. MediCane's pharmaceutical and medical R&D activities span multiple sites worldwide, and include preclinical and clinical trials in a variety of therapeutic areas. MediCane's R&D activities are carried out in-house by its experienced team, as well as in collaboration with world-renowned scientists and leading research institutes, who contribute their analytical, biological and medical know-how. Using a patient-centered approach to clinical trials, MediCane aims to deliver potent cannabis-based pharmaceuticals to treat a range of inflammatory and neurological diseases.

¹ Source: German Federal Statistical Office (Statistisches Bundesamt)

² INSIGHT Health - Green Line NPI (Sell in/Pharmacy purchase)

³ Bfarm Companion survey

The text of the press release resulting from a translation must in no way be considered as official. The only authentic version of the press release is the one in its original language. The translation must always be compared with the source text, which will be the legal precedent.

Contact

Contact information for Dr. Reddy's :

Silke Oeschger-Delautre
[email protected]

Contact information for MediCane :
Michal Klein Halpern

+972508878561

[email protected]