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Perrigo Partners With Kazmira LLC To Enter CBD Market Through A Two-Phased, Science-Based Approach

Partnership focuses on large scale production and supply of cGMP compliant, THC-free CBD

Enables Perrigo to utilize Kazmira’s THC-free hemp-based CBD supply to launch products globally, with exclusive supply agreement for the U.S. store brand market

CBD opportunity complements Perrigo’s Consumer Self-Care growth strategy

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Jun 17, 2020, 08:20 ET

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DUBLIN , June 17, 2020 /PRNewswire/ — Perrigo Company plc (NYSE; TASE: PRGO), a leading global provider of Quality, Affordable Self-Care Products, announced today that it is entering the cannabidiol (“CBD”) market through a strategic investment in and long-term supply agreement with Kazmira LLC, a leading supplier of hemp-based CBD products free of tetrahydrocannabinol (“THC-free”) based in Watkins, Colorado . The fast-growing and rapidly evolving CBD market is emerging organically in response to changing consumer preferences for natural remedies and aligns with Perrigo’s vision “To make lives better by bringing quality, affordable self-care products that consumers trust everywhere they are sold.

Perrigo’s minority equity investment initiates the first phase of the partnership where the two companies will collaborate to scale-up Kazmira’s facilities and laboratories, in accordance with current Good Manufacturing Practices (“cGMP”), to produce THC-free CBD from industrial hemp that meets Perrigo’s high standards for reliability and consistency. In the second phase of the partnership, Perrigo will work to launch THC-free hemp-based CBD products in a number of global markets, while leveraging its supply agreement with Kazmira, which is exclusive for the U.S. store brand market.

Perrigo CEO and President Murray S. Kessler commented, “Science-based natural products are one of Perrigo’s 5 core growth pillars and THC-free CBD products fit perfectly into our self-care strategy. Until now, this emerging industry has lacked the regulatory expertise necessary to bring a trusted supply of CBD to market. Some have even described it as the wild, wild west. We believe that Kazmira’s deep understanding of CBD science, combined with Perrigo’s regulatory expertise and investment, allows us to lead the industry through the next phase of development of rigorous quality standards and proactive engagement with regulators.”

Kessler continued, “Consumers and retail customers want CBD products and we believe they deserve a reliable source of broad-spectrum, THC-free CBD they can depend on. Whether it is the specific concentration of CBD or a THC-free claim, consumers must be able to trust statements made on the label of a product and we believe Perrigo can provide this to the marketplace. We are excited to partner with the team at Kazmira, who share our passion for developing a science-based, regulatory approach to unlock the full potential of this emerging industry. This collaboration offers a great opportunity to enhance profitable growth for our shareholders over the long-term.”

Kazmira Co-CEOs Dr. Priyanka Sharma and Pulak Sharma commented, “We are proud to launch a strategic relationship with Perrigo, the industry leader in delivering safe and effective OTC self-care products. As we continue to grow our business, we look forward to leveraging Perrigo’s regulatory and manufacturing expertise in concert with Kazmira’s proprietary technology for large-scale biomass processing and our established reputation for producing and marketing the highest quality THC-free CBD products.”

In addition to the the supply agreement, Perrigo will acquire an approximate 20% equity stake in Kazmira for $50 million with $15 million paid upon close of the transaction and the balance within 18 months.

About Perrigo Company plc
Perrigo Company plc (NYSE; TASE: PRGO) is dedicated to making lives better by bringing Quality, Affordable Self-Care Products that consumers trust everywhere they are sold. The Company is a leading provider of over-the-counter health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. Visit Perrigo online at http://www.perrigo.com.

About Kazmira LLC
azmira LLC is an industrial scale producer of high purity, THC-free, broad-spectrum CBD oil and THC-free CBD isolate from American-grown ground industrial hemp. The company produces highly concentrated THC-free oils using a unique TruSpeKtrum TM technology platform that enables the supply of zero-THC products that are free of pesticides, solvent residues and heavy metals. Kazmira has demonstrated an ability to design innovative products and processes that are tailored to meet consumer self-care demands while being well-positioned for success in an evolving regulatory environment, and Kazmira’s CBD oils are a significant source to some of the most prominent CBD branded products available to consumers.

/PRNewswire/ — Perrigo Company plc (NYSE; TASE: PRGO), a leading global provider of Quality, Affordable Self-Care Products, announced today that it is…

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