German pharma company acquires Swiss cannabidiol startup

The deal enables Neuraxpharm to enter the fast-growing CBD space and to build on its business of CNS-related products, including value added medicines, standard generics and consumer healthcare products. The acquisition is in line with Neuraxpharm's strategy to expand its presence in Europe entering a key market. Switzerland is now the 10th European market where Neuraxpharm will have a direct presence. It is the fifth country the company has extended its footprint in 2019.

Located in Liestal, near Basel, S.T.U. owns the leading natural CBD brand Hemplix. Hemplix CBD oils have been developed exclusively in Switzerland using 100% Swiss organic raw materials and are subject to strict quality regulations. Another major S.T.U. brand product is smartCBD. The products are currently sold through retail and online sales channels largely in Switzerland and Germany. This meets strict requirements across the European regulatory landscape.

According to recent market research, Switzerland is seen as the European hub for CBD with a broad range of formats available and a high per capita spend. The European CBD market currently stands at a conservative EUR 300m with strong growth forecast over the next few years to reach EUR 1.7bn by 2023. In addition, CBD is being explored in the EU for potential health benefits, including in CNS.

Neuraxpharm will leverage S.T.U.'s brand recognition and product loyalty through its established commercial networks. Neuraxpharm will further enhance its digital offering by leveraging S.T.U.'s online presence to enter new channels through S.T.U.'s distribution network.

Commenting on the transaction, Claudio Iannuzzi and Pascal Siegrist, Managing Directors of S.T.U., said: "As a pioneer in the European CBD market with a very strong product portfolio and established online marketing and distribution networks, we are very excited to team up with Neuraxpharm, the leading CNS company, to advance our CBD business internationally."