After an “unusual series of problems,” Tauriga Sciences TAUG was able to “reinvent themselves” with the help of newly-appointed CEO Dr. Stella Sung.
When an exclusive license agreement went wrong, Immunovative Inc. (Tauriga’s predecessor company) had a very uncertain future.
Immunovative filed a lawsuit against Immunovative Therapies Ltd. regarding the termination of their exclusive license agreement, but after settling outside of court, Immunovative only received a nine percent equity stake in the Israeli firm.
Without that exclusive license, which was the company’s key asset,I mmunovative was left to “rise from the ashes.” Thus,Tauriga was born.
The current company exists with the goal of creating a diversified portfolio of assets, that include licensing agreements and acquisitions of companies that utilize life science technology.
According to Dr.Sung, the company has and will continue, to pursue company acquisitions that have products with a “clear path to commercialization,” and have to chance to compete in a market with reduced FDA regulatory risks. That is where marijuana comes into play.
Traditionally, bio-therapeutics have vast regulatory risks, which is why Dr.Sung wants to “apply interesting life science technology to markets with huge applicability,” while avoiding the need for FDA approval.
Marijuana-based products are not yet regulated by the FDA, with makes cannabis the ideal component for Sung and the Tauriga team.
Honeywell LLC Acquisition
On March 11th, 2014, Tauriga announced the acquisition of California’s leading manufacturer of topical medicinal cannabis products, Honeywood LLC. This acquisition launched Tauriga into the marijuana space, using Honeywood’s Doc Green’s brand of topical creams as an entry point to the canna-business space.
Doc Green’s produces cannabis oil infused creams that are designed to alleviate pain while providing no psychoactive effects. Doc Green creams were the first professionally packaged and widely distributed cannabis product on the California market, and are found in hundreds of dispensaries.
Dr. Sung told Benzinga her comments are not medical claims, but noted that “it has been suggested that cannabis, and this specific formulation, really interacts with the CB2 receptors associated with pain and inflammation, and we have a lot of testimonials where people say it helped them.”
Doc Green’s target audience is the elderly population, as many “are already taking a lot of oral medications and don’t want to take any more due to the fear of sides effects from drug-drug interactions, but do suffer from pain and discomfort. “
Dr. Sung also stressed the importance of cost efficiency, noting that “other prescription analgesic topical creams are not covered under Medicare Part D, so they are super expensive” (a 4 ounce bottle of Vanilla Scented Doc Greens cream is $20.00).
Further development in the cannabis space for Tauriga seems evident, but Dr.Sung is not sure if they will expand under the Doc Green’s brand, or if they will make further acquisitions.
“We are committed to our current legitimate cannabis business as an entry point," she said, "and we believe that cannabis has a lot of benefits. Overall, the cannabis related area is very, very promising.”
Dr. Lawrence A. May MD joined the Tauriga team in April of 2013, and brings a wealth of experience in the life science space. Dr. May served as the executive vice president for medical and scientific affairs for Herbalife international, and Dr.Sung is confident he will be a huge contributor to future cannabis related projects.
“ I think his background is perfect for developing supplements related to cannabis effects [including] memory and cognitive issues, appetite, and depression,” she said.
Tauriga hopes to develop a better presence by placing their products in dispensaries, but does not want to limit themselves, and will use other distribution channels as well.
This is part one of a two-part interview with Tauriga Sciences CEO Dr.Stella Sung. Click here to read part two.
To learn more about the expanding cannabis financial industry, check out the 420 Investor on Marketfy.
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