HERZLIYA, Israel – Israeli medical cannabis producer Cannadoc, a subsidiary of life science company Intercure has agreed on a strategic distribution deal with Salomon, Levin, Elstein (S.L.E.), a subsidiary of Teva Pharmaceutical Industries (NYSE: TEVA).
S.L.E. will provide distribution for Cannadoc products to hospitals, health maintenance organizations (HMOs), all pharmacy chains, and independent pharmacies in Israel. The agreement has been set up for a three-year term.
“Our agreement with S.L.E., Israel’s leading company in distributing medical products, creates a complete supporting platform for supplying Canndoc’s GMP products to any location in Israel and for countries with similar regulations,” said Canndoc’s Chairman Ehud Barak. “Through its S.L.E. partnership, Canndoc has aligned itself with one of the most prominent pharmaceutical companies in the world, for the distribution of cannabis-based medical treatments to countries that recognize the value of these medicines for people in need.”
Cannadoc has been licensed by the Israeli Ministry of Health since 2008, and operates two production sites in Israel, as well as partnerships for cannabis production in Canada and Europe, which specialize in “medical grade cannabis” cultivation.
“InterCure is the first public company on the Tel Aviv Stock Exchange to hold a valid and permanent license for the entire medical cannabis value chain, through its 100 percent ownership in Canndoc,” according to the Cannadoc press release.
Teva Pharmaceutical Industries, an industry leader for three decades, is an Israeli multinational company that specializes in generic drugs, pharmaceuticals ingredients, and some proprietary medications. Adderall is a proprietary drug from Teva, but they mainly produce a long list of generic formulations including alprazolam (Xanax), amoxicillin, fentanyl, and dozens of other commonly prescribed drugs.
In May, Connecticut Attorney General William Tong filed a suit on behalf of forty-four states against Teva Pharmaceutical and nineteen other drug companies for price-fixing and collusion.
Also in May: Teva Pharmaceutical agreed to pay $85 million to the state of Oklahoma for having helped fuel the opioid crisis—though the company did not admit blame—as part of the settlement.
Company investors have expressed concerns that exposure to industry-wide opioid-related lawsuits, which already number in the thousands, may have a detrimental and lasting effect on Teva’s long term profitability. Hefty fines have already been charged to other manufacturers, like world’s biggest drug maker Johnson & Johnson and Purdue Pharma.
“[Teva] has been struggling to compete in its core generic pharmaceuticals markets, is accused of being the ringleader in a massive price-fixing conspiracy, and is legally exposed to the opioid crisis,” financial publication The Motley Fool simply said.