Creso to broaden LATAM sales footprint

Creso Pharma (ASX:CPH) has signed a non-binding, non-exclusive Letter of Intent (LOI) with Laboratorios Brouwer and the Company’s Latin American representative, Medara SA to help commercialise anibidiol products in the region including Argentina, Chile, Perú, Colombia and Brazil.

Under the LOI, Medara S.A. will support the Company and Brouwer in the importation, marketing and sale of Creso’s products.

To the uninitiated, Brouwer is a Buenos Aires-based manufacturer and supplier of products for animal health and animal nutrition for companion animals and livestock with branches throughout Chile, Perú, Costa Rica, Colombia, Brazil and Mexico.

Under the agreement, Creso Pharma will work with Brouwer and Medara S.A. to progress the commercialisation and manufacturing of its suite of anibidiol products for sale across Latin America.

Sales to commence 1H22

The company expects the commercialisation and sale into the new territories to commence during first half 2022.

The parties have agreed to enter into a formal Commercial Services & Supply Agreement on or before 30 July 2022.

The initial term of the LOI will run until the Expiration Date and is intended to be replaced by the terms of the Commercial Agreement, unless either parties notify the other of their decision not to pursue with the Distribution Agreement on or before the Expiration Date.

Large addressable market

The LOI is expected to increase the company’s exposure to the large, addressable market in Latin America, estimated at around 187 million pets.

Commenting on the LOI, Creso Pharma CEO Will Lay said:

“Latin America is a highly attractive region for the company to operate in… we believe there are substantial growth expectations and… are confident that this LOI will provide the company with extensive expertise and manufacturing knowledge to progress long term sustainable growth across the Latin American region.”

The Creso share price has been on a rollercoaster over the last six months.