Shares of the British Columbia-based cannabis company surged more than 7% to US$70.75 in Tuesday pre-market trading.
The cannabis company turned its existing partnership with Sandoz Canada Inc into an agreement with parent company Sandoz AG, a division of Novartis.
Tilray and Sandoz will collaborate on non-smokable products, including some co-branded cannabis products.
“It just made sense for us to reach an agreement with a company like Sandoz, which is known for its focus on patients, its reliable supply chain, a well-established sales force and a global distribution network,” said Tilray CEO Brendan Kennedy in a phone interview with Bloomberg.
Kennedy noted that a product with the Sandoz logo on it lends credibility to Tilray’s product.