The new development will be tightly focused on supply active pharmaceutical ingredients for new drug development, said Adam Ismail, chief strategy officer for the company. To some degree it’s a statement about how the uncertain regulatory framework for hemp/CBD nutritional products in the United States, Europe and elsewhere is inhibiting innovation.
“Our focus is really on the pharma market for cannabinoids. That’s where we really see a lot of growth potential. It has a completely different regulatory framework from supplements,” Ismail told NutraIngredients-USA.
Growth in API demand
Ismail noted that there are hundreds of proposed studies or research underway using various cannabidiol formulations. A search on the clinicaltrials.gov database shows 759 hits using ‘CBD’ as a search term. Some of these are prospective and not yet recruiting and some have been withdrawn. Still, the scope of the activity makes it obvious that this is the growing end of the market for CBD ingredients.
“What we are doing is more narrow than some of the other extraction companies,” Ismail said. “It requires GMP manufacturing capabilities and it requires drug master fils be in place.”
“There are more than 100 products that are Phase 2 or Phase 3 clinical trials. Ultimately those companies will need a source of APIs and we think we can supply that need,” he said.
KD Pharma is already experienced in supplying fish oil-based APIs and will continue to build on that expertise, said KD Pharma CEO Oscar Groet.