Australia’s Avecho Biotechnology has announced a major partnership with Swiss pharmaceutical giant Sandoz to bring its cannabidiol (CBD) capsule for insomnia to the Australian market.
Under the exclusive 10-year agreement, Sandoz a global leader in generic pharmaceuticals with a market cap of over $20bn, will gain commercial rights in Australia while Avecho retains rights for all other markets.
The deal will see Avecho receive an upfront payment of US$3 million (approximately A$4.8 million), up to US$16 million in development milestones, alongside tiered royalties of 14–19% on future net sales.
This week (May 20), Avecho announced key progress in its Phase III clinical trial of its CBD) soft-gel capsule. The trial, which is the largest of its kind in Australia, now includes new recruitment sites in Sydney and the Gold Coast and aims to dose around 210 patients before an interim analysis expected in early 2026.
Its recent expansion has been supported by its recent licencing deal with Sandoz, which closed in March 2025, and Sandoz will support patient recruitment and provide strategic input into the regulatory pathway for approval by the Therapeutic Goods Administration (TGA).
Avecho’s CEO, Dr Paul Gavin, said: “The licensing agreement with Sandoz has delivered the capital required to accelerate patient recruitment ahead of our interim analysis, a key milestone in the value development of the program.”
If successful, Avecho’s CBD capsule could become the first TGA-approved over-the-counter cannabidiol treatment for insomnia in Australia, a market projected to exceed US$125 million annually. No other company has yet passed a Phase III CBD trial in the country.
Under the partnership, Avecho will continue to oversee the clinical trial and manufacture the product, while Sandoz will handle commercialisation, marketing and distribution once regulatory approval is granted.
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