Revolutionary Hemp Drug Collaboration: British American Tobacco Partners with CBD Giant Charlotte’s Web for FDA Approval
British American Tobacco (BAT) and Colorado-based CBD and hemp company Charlotte’s Web Holdings have embarked on a groundbreaking joint venture, aiming to secure approval from the U.S. Food and Drug Administration for a groundbreaking drug infused with hemp. The collaboration between BAT, a subsidiary of British American Tobacco, and AJNA BioSciences PBC, co-founded by former Charlotte’s Web CEO and board chair Joel Stanley, involves a significant investment of $10 million, as disclosed in a recent news release.
In this pioneering partnership, BAT is committing $10 million toward the joint venture, obtaining a 20% equity interest in preferred units, with the potential to participate in future equity issuances to maintain its position. Both Charlotte’s Web and AJNA possess 40% of the joint venture’s voting common units, ensuring a balanced collaboration between the three entities.
The joint venture will be co-led by representatives from Charlotte’s Web, AJNA, and BAT. Their primary objective is to file an Investigational New Drug (IND) application with the FDA and commence Phase 1 clinical development this year, propelling them towards the ultimate goal of achieving FDA approval for the hemp-containing drug.
Central to the drug’s formulation will be Charlotte’s Web hemp genetics, renowned for its therapeutic properties. AJNA, a Littleton-based company specializing in botanical drugs for mental health and neurological disorders, will contribute its invaluable expertise in lab and regulatory services and clinical know-how, enriching the project’s potential for success.
Presently, the FDA has granted approval for just one cannabis-derived product, known as Epidiolex, emphasizing the significance of this collaboration in pioneering groundbreaking treatments within the cannabis industry. Interestingly, AJNA’s chief medical adviser, Orrin Devinsky, played a vital role as a principal investigator during the development of Epidiolex, adding to the wealth of expertise fueling this innovative project.
The partnership between British American Tobacco and Charlotte’s Web marks a significant milestone in the cannabis industry, bringing together two influential entities to explore the potential of hemp-based medications and revolutionize the treatment landscape. With the combined expertise, resources, and determination, this collaboration holds promise for a brighter and more innovative future in hemp-derived therapeutics.
