Tilray and Budweiser maker will partner to research weed drinks; Tilray stock jumps

Tilray and Budweiser maker will partner to research weed drinks; Tilray stock jumps

Marijuana producer Tilray Inc. announced Wednesday that it has signed a research partnership with Budweiser maker Anheuser-Busch InBev SA, as the Canadian cannabis industry continues to strike deals with legacy industries.

The joint venture will run through Anheuser-Busch’s BUD, -0.39% subsidiary Labatt Breweries of Canada, and each company intends to invest up to $50 million to research beverages infused with tetrahydrocannabinol, or THC, and cannabidiol, or CBD. THC is the compound that produces psychoactive effects, whereas CBD does not — though it has other properties some see as beneficial.

Tilray TLRY, +6.00%  said that the partnership is limited to Canada, and that the two companies will make decisions about developing products from the research in the future.

“For us, it’s early days in this industry and research feels like the right place to start,” Tilray Chief Executive Brendan Kennedy said in a telephone interview Wednesday morning. “At Tilray, we’ve been performing research and develop for almost five years on lots of different aspects of cannabis and cannabinoid delivery.”

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Tilray’s stock opened more than 13% higher Thursday following the announcement, adding to gains from a different partnership revealed earlier this week. The company revealed a global distribution deal with pharmaceutical giant Novartis AG NVS, +0.53% on Tuesday morning.


Published at Thu, 20 Dec 2018 16:04:15 +0000

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