The CBD market is booming, with products that generated about $ 5 billion in the U.S. last year. But according to Chad Collins, the retail market is full of quality, manufacturing and transparency issues.
That is why it focuses on the health aspect.
Collins is one of the founders of Corganics, a Dallas-based clinical cannabinoid supplier to the healthcare industry. The startup connects professionals and patients directly, offering organic therapeutic products that can replace, or combine with, traditional pharmaceuticals.
Because, as Collins says, “patients deserve better.”
“Patients ask healthcare professionals about clean, safe natural products,” he told Dallas Innovates. “We offer healthcare professionals a brand they can trust by helping to bridge the gap between the healthcare provider and the patient.”
Collins and his team have set out to be the most reliable and recommended clinical cannabinoid company by healthcare professionals.
To support what he calls Corganics’ “next growth chapter,” the CEO announced today that the company had received a Series A investment from Altacrest Capital, a Dallas-based private equity firm. The amount of funding was not disclosed.
Altacrest focuses on consumer brands that are poised for continued significant growth. The team’s hands-on approach involves collaborating with founders and management teams to expand.
“We are excited about the potential of hemp-based cannabinoid clinical therapies and strongly believe in the strategy of involving health professionals to help differentiate quality from that of the retail sector.” Brien Davis, Altacrest partner, said in a statement. “The partnership with the dynamic Corganics team is a testament to our belief that there is a gap in quality and transparency in the CBD retail market.”
Funding will go to expanding Corganics ’clinical product portfolio, which is expected to accelerate the team’s ability to reach healthcare providers. Collins says capital will also help scale operations, business capabilities and research and development.
“This investment is an exciting step forward in fulfilling our mission to deliver effective clinical cannabinoid products that healthcare professionals and their patients can trust,” he said. “We hope to grow our operations to support this goal and build the most reliable clinical cannabinoid company recommended by healthcare providers.”
Provide confidence in the CBD
The NIH defines cannabinoids as a group of substances found in the cannabis plant; the two main ones are THC and cannabidiol (CBD).
The state legalized the growth of industrial hemp and the sale of hemp products, such as CBD oil, in 2019 with the passage of Texas House Bill 1325. And earlier this month, a bipartisan measure in the Texas legislature expanded Texas’ compassionate use program. House Act 1535, signed by Gov. Greg Abbott, allows doctors to prescribe THC-low medical cannabis to all cancer and PTSD patients, and increases the legal amount of THC to 1%.
But Collins believes there are still too many inconsistencies in the manufacture and quality of CBD retail.
Corganics offers clinical therapy products with cannabinoids that are tested by third parties in ISO certified laboratories and manufactured in a NSF (cGMP (Current Good Manufacturing Practice)) certified facility. Everything is scientifically formulated and advised by a doctor.
According to the company, its products do not contain detectable THC.
The business model is based on what Collins says is the purity demanded by the healthcare network. Corganics ’portfolio, which includes clinical therapies with cannabinoids and other natural products, can only be purchased through healthcare professionals.
According to co-founder Reggie Gatewood, the team saw an opportunity for healthcare professionals to get into the ever-growing and changing conversation of CBD. “With one in five Americans buying CBD at retail, alternative therapies like clinical cannabinoids are making waves in conventional medicine,” he said.
With many self-treatments, he and Collins wanted a way to deliver products with the “power and purity” the healthcare industry can achieve.
The company now operates both clinical and consumer health divisions, and distributes in the U.S. and other regional countries.
With the new round of funding, Corganics also plans to expand education on cannabinoid treatments. Collins says the team is “eager to educate providers and patients about the importance of label transparency and quality ingredients,” ultimately to silence market noise.
“We will continue to leverage our expertise based on our deep heritage in pharmaceuticals to build successful healthcare brands with healthcare professionals,” Collins told Dallas Innovates. “We are uniquely qualified to deliver a higher quality and more transparent product portfolio to the market, and also build clinical education platforms for healthcare providers.”
A brand change and an acquisition
The funding announcement coincided with the team’s presentation of the new Corganics name. Formerly MD Farma, the company changed its name to reflect its strong mission to help healthcare professionals become a trusted partner for patients.
“Corganics talks about our strategy of bringing the highest quality natural products to market,” Collins says. “We are ‘organic to our core.’ We focus on healthcare professionals that include MD, DO and Pharm D, therefore a more professional name that resonates regardless of specialty.”
Corganics also announced that it was acquiring Relief, a supplier of natural and non-CBD topical painkillers for a wide range of acute and chronic pain relief. The products are available through healthcare professionals such as oncologists, primary care providers, orthopedic surgeons, pain management specialists, podiatrists and chiropractors.
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