Generex Biotechnology Corporation has entered into a non-binding Letter of Intent (LoI) to license the company's proprietary RapidMist drug delivery technologies to CannScience Innovations Inc. (CannScience) for the delivery of medicinal cannabis derived products into the bloodstream through the buccal membrane.

The RapidMist drug delivery platform administers medications directly into the mouth as a metered dose spray for rapid absorption by the buccal mucosa. Generex's most advanced product in development using RapidMist is Generex Oral-lyn for the treatment of diabetes mellitus.

This co-development arrangement with CannScience is intended to develop products initially for the Canadian medical cannabis market. The LoI contemplates a significant royalty stream to Generex. Costs to develop, manufacture, and commercialize the products will be borne by CannScience.

Since 2001, qualifying Canadians have been able to access medicinal cannabis through the Marihuana Medical Access Regulations (MMAR) programme. In response to a handful of concerns, on April 1, 2014, the MMAR system was repealed and replaced with the Marihuana for Medical Purposes Regulations (MMPR) programme  (which came into effect on October 1, 2013), where all medicinal cannabis must be produced and procured a Licensed Producer (LP), effectively commercializing the medicinal cannabis industry in Canada.

Health Canada projects a total market of $1.3 billion by 2024 under the new MMPR system, representing a growth in number of patients of 36% CAGR over the coming five years and a further 10% CAGR over the following five years.


Further, products developed through this co-development arrangement may potentially be commercialized in international markets. In legalized marijuana markets such as Colorado, derivative product market segments have demonstrated the fastest growth as the markets become established.

CannScience is an R&D biopharmaceutical company established in Toronto, Canada to conduct research and product development for formulations and extracts related to medical cannabis and its derivatives.

Both Generex and CannScience believe that absorption of cannabis derived products through the buccal membrane offers distinct advantages to alternative routes of administration - principally, a faster onset of activity compared to oral administration, higher level of control for dosing, and more predictable absorption and pharmacodynamics.

The discussions between Generex and CannScience are at an early stage, and the LoI does not assure that CannScience will enter into a license with Generex or utilize the RapidMist technologies.  CannScience does not currently have any products on the market or approved for commercialization.  Even if Generex and CannScience enter into a formal license, any benefit from that license depends upon CannScience's ability to develop a product, have it approved by the appropriate regulators, and successfully commercialize the product.

Generex is engaged in the research, development, and commercialization of drug delivery systems and technologies.