Singapore, March 5 -- Avecho Biotechnology has signed an exclusive ten-year development and licensing agreement with Sandoz Group AG for the commercial rights to Avecho's Phase III cannabidiol (CBD) capsule for insomnia in Australia. Avecho retains the rights to commercialise the product in all other territories, with Sandoz granted a first right of refusal for these markets.

Avecho's CBD capsule aims to be the first pharmaceutical CBD product registered with the Therapeutic Goods Administration (TGA) as an over-the-counter medicine, which market forecasts predict could generate sales surpassing $125 millionper annum in Australia.

Sandoz has agreed to an upfront licensing fee of $3 million(approx. A$4.8 million) for the exclusive commer...