Avecho and Sandoz sign exclusive deal in Australia

4 March 2025

Avecho Biotechnology (ASX: AVE) has signed a ten-year development and licensing agreement with Sandoz (SWX: SDZ) for the commercial rights to its cannabidiol (CBD) capsule for insomnia in Australia.

The deal includes upfront, milestone, and royalty payments. Sandoz will pay an upfront licensing fee of A$4.8 million ($3 million) and assume responsibility for marketing and distribution once the product is approved.

Avecho will continue to fund and oversee its ongoing Phase III clinical trial, with Sandoz collaborating on regulatory approval with the Therapeutic Goods Administration. The company is eligible for up to $16 million in development milestone payments before commercialization and will receive tiered royalties of 14% to 19% on net sales.

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