Organigram Expands THCV Portfolio with Phylos Investment
The TDR Three Key Takeaways on Organigram’s THCV Expansion with Investment in Phylos Bioscience:
- Organigram will invest further in Phylos to enhance its THCV product line with 21 new auto-flower seed varietals by September 30, 2024.
- The agreement grants Organigram exclusive rights in Canada to commercialize high-THCV strains like Joyride until May 2028.
- Organigram’s expanded portfolio now includes access to high-potency CBG, CBC, and CBDV seed-based cultivars, diversifying its market offerings.
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) is continuing its focus on THCV products through a strategic investment in Phylos Bioscience Inc. Organigram completed early partial funding of its final third tranche investment in Phylos, with the remaining portion contingent on new milestone achievements.
“We are pleased with the progress we’ve achieved to date and the benefits that have stemmed from this strategic investment. The continuous development and milestone achievements are instrumental in expanding and differentiating Organigram’s portfolio of seed-based cultivars, which are currently being scaled and have started to deliver tangible benefits to the organization,” says Borna Zlamalik, Senior Vice President, R&D and Innovation at Organigram.
Phylos is set to deliver 21 unique auto-flower seed varietals by September 30, 2024, with a second batch due by January 31, 2025. This expanded milestone will bolster Organigram’s portfolio, enhancing its range of seed-based cultivars.
THCV, known for its energizing effects and potential benefits in regulating blood sugar levels and reducing insulin resistance, is a challenging cannabinoid to cultivate and process. However, Organigram has exclusive rights in Canada to commercialize Phylos’ high-THCV strains like Joyride until May 2028.
Organigram was a pioneer in launching THCV products in Canada, debuting SHRED’ems last year. The company is currently the only producer in Canada offering whole-flower derived THCV products in the pre-milled and pre-roll categories.
Organigram’s THCV product line includes:
- SHRED Supersonic Citrus THCV pre-milled Flower
- SHRED X Guava Lime Go-Time Heavies Infused Pre-rolls
- SHRED’ems Guava Lime Go-Time 1:1 THCV: THC Gummies
- SHRED’ems Pink Lemonade Yuzu 2:1 THCV: THC Gummies
- Trailblazer Hustle n’ Haze THCV pre-rolls
- Monjour Cherry Citrus Sunshine 8:3:1 CBD/THCV/THC Gummies
In addition to THCV, the expanded genetics license from Phylos grants Organigram access to high-potency CBG, CBC, and CBDV seed-based cultivars. Organigram has now advanced $7 million to Phylos as a convertible loan, with an additional $1 million contingent on milestone completion by March 31, 2026.
This unique edge helps Organigram compete in the highly competitive Canadian marketplace. Shareholders hope these partnerships and investments will help revenue growth return to the double-digit numbers the company produced in the past. The company’s revenue growth in the LTM has slowed to 2.6% compared to the previous LTM period. The company reported its Q2 Fiscal 2024 earnings on May 15th, so we would expect an earnings update in three weeks, around August 15th.
