Benzinga | Dec 9, 2021 09:50PM EST

Tilray Accused Of Breaching License Agreement With IntelGenx Over Medical Cannabis Oral Strips

Canadian cannabis giant and one of the most popular marijuana stocks Tilray Inc. (NASDAQ:TLRY) announced last week that its medical subsidiary Aphria has launched oral strips in THC and CBD-rich varieties.

Each Aphria medical strip is supported by QuickStrip's proprietary technology and it has a thin, edible film with quickly dissolving micronized cannabinoids that are absorbed directly into the bloodstream, allowing for a fast-acting and precise dosing as well as relief from the symptoms of various conditions.

On the heels of this announcement, IntelGenx Corp. (TSX:IGX) (OTCQB:IGXT) revealed that it had initiated an arbitration proceeding against Tilray related to an alleged breach of the parties' 2018 license, development and supply agreement, as amended with Tilray for the co-development and commercialization of cannabis-infused VersaFilm products.

IntelGenx, which is focused on the development and manufacturing of pharmaceutical films, noted that Tilray's press release on the launch of the medical cannabis strips represented a material breach of the agreement.

"We believe that this demonstrates a disregard of contractual obligations by Tilray," Dr. Horst G. Zerbe, CEO of IntelGenx stated. "We remain committed to protecting our commercial rights and are prepared to take any necessary legal steps in that regard. Making our innovative and high-quality oral thin film products available to medical and recreational cannabis consumers remains a top priority for IntelGenx."

Benzinga reached out to Tilray for comment on this issue but did not receive a response prior to the time of this writing on Thursday morning.

Price Action

Tilray's shares were trading at $9.61 at the time of writing, while IntelGenx' shares traded 5.28% lower at 46 cents per share.

Photo: Courtesy of Esteban Lopez on Unsplash