CTC Bio said on Tuesday that it has signed a memorandum of understanding (MOU) with Co-Evolution Network LLC (CoNet LLC), a Japanese company, to develop cannabidiol (CBD) oral dissolving films (ODF).
CBD refers to a substance that is utilized and distributed by excluding hallucinogenic drugs and is used to reduce pain and seizures, and treat pain in patients with rare and intractable diseases. It is known to be typically effective in treating childhood epilepsy, dementia, and Parkinson’s disease.
Under the MOU, CTC Bio will first complete the technology development and then supply the developed products to CoNet LLC to distribute them to the Japanese market and other countries designated by CTC Bio.
The product that CTC Bio will distribute after technology development is ODF containing CBD, and the company has already completed a patent application in Korea and is also applying for overseas patents. When oil-type CBD is applied to ODF, the bioavailability increases, so it has the advantage of being able to administer accurate doses along with greater convenience.
In December 2020, under the recommendation of the World Health Organization (WHO), the UN-affiliated Drug Commission excluded marijuana from drugs. Subsequently, 56 countries, including Japan, Canada, and the United States, legalized medicines containing CBD, and the global market using marijuana continues to grow.
Particularly, the global medical cannabis market is growing by 22.1 percent annually and is estimated to reach 51 trillion won in 2024, said a CTC Bio official.
As Japan has no raw material production due to regulations on the „Cannabis Control Act,” it is difficult to develop products out of Japanese raw materials. Accordingly, CTC Bio’s supply is expected to occupy a large size in the Japanese market in the future, the company said.
Since 2017, CTC Bio has been conducting CBD research and development at the Gyeongbuk Industrial Hemp Regulatory Free Zone located in Andong, North Gyeongsang Province.
CTC Bio CEO Kim Young-deok said, „We will be the only global company that has secured film-type CBD research technology and expect this MOU to be the cornerstone for expanding CBD business overseas.”