Dr. Reddy’s Laboratories has agreed to acquire Nimbus Health, a German medical cannabis firm, for an undisclosed price.

The Indian pharma company will acquire Nimbus Health for an upfront payment followed by earn-outs that are contingent on performance and milestones over the next four years.

Established in 2018, Nimbus Health is the product sales and distribution partner of Australia-based medicinal cannabis products provider Althea Group Holdings in Germany.

Althea Group said that its existing agreement with Nimbus Health will stay intact, under which it gets paid for products supplied to the latter plus 50% of the net profit on sales.

Linus Maximilian Weber — Nimbus Health Founder and Managing Director said: “We were really excited when Dr. Reddy’s approached us and recognized Nimbus’s highly efficient importing, registering, and launching platform for various medical cannabis brands in Germany.

“The close alignment between the values of Dr. Reddy’s and Nimbus gave us the confidence that we can stay focused on the existing business and grow future endeavors together. We are glad to work with Dr. Reddy’s to activate synergies supporting growth in all sectors.”

Dr. Reddy’s Laboratories said that the acquisition of the German medical cannabis firm will enable it to build on the latter’s strengths and roll out medical cannabis-based medicines as a potential treatment option for patients. The acquired company will operate under the brand Nimbus Health and as a fully-owned subsidiary of Dr. Reddy’s Laboratories.

Patrick Aghanian — Dr. Reddy’s Laboratories Head of European Generics said: “Medical cannabis is increasingly used to address and treat high unmet medical needs, especially in pain management and CNS. Further, with numerous studies being conducted to leverage and introduce medical cannabis, we believe this is a must-be field for future healthcare delivery.

“Nimbus Health has established itself as a fast-growing, highly reputable, pioneering platform with an excellent network of trade partners and know-how access, where the German sick-funds fully reimburse medical cannabis. As more European countries adopt the usage of medical cannabis, the ability to leverage and access newer geographies will be key.”

The closing of the deal is subject to the meeting of customary closing conditions.

  Althea Group Holdings, Cannabis, Dr. Reddy’s Laboratories, Germany, Linus Maximilian Weber, Medical cannabis, Nimbus Health, pain management, Patrick Aghanian, Pharma acquisition news