Published: 5/5/2021 1:18:04 PM

Dancann Pharma: Important deal with Tetra finalized - Carlsquare

On March 2 2021, DanCann Pharma A/S (DanCann or the company) signed a letter of intent with Tetra Bio-Pharma for the distribution of three cannabis based medical products. Today, DanCann released the information that the letter of intent has been converted to a formal agreement. DanCann receives distribution rights in the Nordic countries and Germany for Reduvo Adversa® and Qixleef™.

Dancann Pharma will pay a total consideration of DKK 6.25 million in upfront and milestones. The company estimates peak sales of DKK 340-410 million in 2028 and royalties of up to DKK 62.5 million corresponding to a royalty rate of 15 percent. These are the costs DanCann has to pay for exclusivity on its markets. As a distributor, Dancann Pharma will also have to import the goods which is a cost. The company’s estimated peak sales figures indicate a good potential for the deal.

Carlsquare recently initiated coverage of Dancann Pharma with a fair value per share of DKK 6.5. Read the full report here.

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