WEBVTT - BioMediCan Founder and CEO on Artificial-Cannabinoids

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer on

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<v Speaker 1>Bloomberg Radio. Alright, so some say it could be the

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<v Speaker 1>next generation of CBD. We're talking about synthetic cant of annoids.

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<v Speaker 1>Hopefully I'm saying that right, can of anoids. Yeah, uh.

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<v Speaker 1>And I think it's interesting. It's coming on a day

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<v Speaker 1>where Charlie has been mentioning that headline about Tilray in Afria.

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<v Speaker 1>It advanced merger talks that coming from our being in

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<v Speaker 1>Bloomberg TV team. So we're seeing once again some activity

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<v Speaker 1>when it comes to kind of the overall cannabis industry.

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<v Speaker 1>But right now we want to talk a little bit

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<v Speaker 1>more about synthetic cannabinoids. Several companies are pursuing just that,

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<v Speaker 1>creating them cannabinoids that are engineered actually in a lab.

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<v Speaker 1>And one company that is doing that is Biomedican, which

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<v Speaker 1>notes on its website that it is already producing pharmaceutical

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<v Speaker 1>grade organic, non GMO rear count of annoids. And here

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<v Speaker 1>to talk about it is Max mckeef. He is co founder, CEO,

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<v Speaker 1>chief science officer at the biotech startup Biomedicn and he

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<v Speaker 1>joins us on the phone from Fremont California. Max, nice

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<v Speaker 1>to have you here with us. How are you and

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<v Speaker 1>tell us about the work that you guys are doing. Girl,

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<v Speaker 1>thank you for inviting for this call for this interview.

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<v Speaker 1>So which is correct you mentioned that we allocated in

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<v Speaker 1>California for a month. I only want to get some

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<v Speaker 1>provide some qualification that synthetic it's not an exactly correct

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<v Speaker 1>name for kind of knoweds which we have producing because

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<v Speaker 1>usually when people discussion synthetics, they usually taking account chemical synthegies.

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<v Speaker 1>Chemical synergies are providing of course similar structure, but not

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<v Speaker 1>always identical. One of the most famous example of um

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<v Speaker 1>issues which chemical synergies or can provide it is, you know,

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<v Speaker 1>is a mirror. So basically it's when you have the

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<v Speaker 1>same amount of atoms, but they are rotated in space

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<v Speaker 1>a little bit differently. The most famous example here is

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<v Speaker 1>trans fats. So basically, as you know, uh, fifteen years

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<v Speaker 1>ago UH passion excratergenated oils and trans fats was commonly

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<v Speaker 1>used in food industry, and like fifteen years ago, it

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<v Speaker 1>was completely forbidden by FG to use for human consumption.

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<v Speaker 1>So the problem is that exactly in stereo structure, what

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<v Speaker 1>we are doing we are we're using biosynthies by a

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<v Speaker 1>synthesis providing exactly same structure, exactly same maleco got is

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<v Speaker 1>present in plants in nature. So that's why I would

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<v Speaker 1>really separate synthetic from biosynthesis. So so in other words,

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<v Speaker 1>so you know, comparing it with um, you know something

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<v Speaker 1>that isn't synthetic naturally occurring. You're saying that you're using

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<v Speaker 1>biosynthesis to create exactly the same molecular structure, but you're

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<v Speaker 1>just doing this in a lab, right, Yes, yes, it

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<v Speaker 1>is absolutely connect So where are you in this process?

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<v Speaker 1>And I'm curious, um, you know, talk to me a

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<v Speaker 1>little bit about you know, where you are, um in

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<v Speaker 1>terms of getting products out to market. Mhm. So we'll

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<v Speaker 1>already develop a several strains which can produce a kind

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<v Speaker 1>of any very high yield. Right now, we're preparing for

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<v Speaker 1>pilot scale production, which you plan to start shortly. And

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<v Speaker 1>once we'll have pilot scale, you'll start providing samples to

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<v Speaker 1>potential customers and basically the next step after least will

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<v Speaker 1>be of course scaling up for life scale production. So

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<v Speaker 1>most likely will go initially contact manufunctional organizations to full

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<v Speaker 1>life scale production. So wait wait, let me just max,

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<v Speaker 1>let me just jump in. So, who will be who

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<v Speaker 1>will be purchased in this? Is this the same as

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<v Speaker 1>you know the CBD markets that we spend so much

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<v Speaker 1>time talking about here at Bloomberg and certainly we've got

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<v Speaker 1>a bunch of publicly health companies who will be buying this. Yes,

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<v Speaker 1>our target customers is the company which you're producing right

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<v Speaker 1>now should be deep products and similar for end users.

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<v Speaker 1>So and basically they can just use our compounds and

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<v Speaker 1>adds to their formulation directly so cure they usually buy

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<v Speaker 1>and should be deep from growers and from from extraction

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<v Speaker 1>using extraction from plants. Same, absolutely same. We could provide

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<v Speaker 1>them our compounds which they can use an identical way.

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<v Speaker 1>They will be able to add to the ittabiles, uh whites, cosmetics, anything. So,

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<v Speaker 1>so what's the advantage of going your way? Is it

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<v Speaker 1>just a more controlled production able to ramp up more

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<v Speaker 1>easily and you know, tell me what the advantage is

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<v Speaker 1>over kind of naturally occurring CBD. Um Again, I want

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<v Speaker 1>to clarified that we are not talking in at least

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<v Speaker 1>initially CpG. We want to partner your company with companies

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<v Speaker 1>who is producing CpG now and sell it, so we

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<v Speaker 1>tig it and rend of knowledge. We're talking like CBG

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<v Speaker 1>which present much low concentration and plants compared to CpG.

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<v Speaker 1>We also tried in KHTV and we're tared it in

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<v Speaker 1>some other kind of annoyance. That's an example. We in

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<v Speaker 1>August the file pattern for production of watching new class

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<v Speaker 1>of kind of ainoyance. It's called Chris UHB is Gonna

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<v Speaker 1>ben it. So the only serial mentioned about this cannabino

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<v Speaker 1>ledge in in uh literature. So it was found in

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<v Speaker 1>Champan in the cannabis, but nobody studied them yet actually

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<v Speaker 1>made a really important distinction. That's synthetic can often mean chemical,

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<v Speaker 1>and that's not exactly what you guys are doing. That

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<v Speaker 1>is not at all what you're doing. You use biosynthesis,

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<v Speaker 1>which as we know, happens uh you know, naturally in

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<v Speaker 1>nature to create um cannabinoids with the same molecular structure

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<v Speaker 1>with the other thing. That's interesting and I don't think

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<v Speaker 1>people know and we're still learning about kind of the

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<v Speaker 1>cannabis market and industry in general. There are more than

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<v Speaker 1>a hundred different types of cannabinoids in cannabis, and you're

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<v Speaker 1>going after some of those that aren't already out in

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<v Speaker 1>the marketplace, Is that correct? It just connect so we're

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<v Speaker 1>talative for example, like TV, it's coming to markets up

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<v Speaker 1>and has a huge potential. It's for example, has antiam UH,

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<v Speaker 1>it'scause uh neuroprotective etet and it has uddusition appetizi etect.

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<v Speaker 1>So it's can be used as an example to wasve

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<v Speaker 1>control and eppetize control and take again like neuroprotective and help.

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<v Speaker 1>What's neuroprotect to? Explained that to me if you would

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<v Speaker 1>UM in some works pretty in the works not on

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<v Speaker 1>human studies who were shown that CD potential can help

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<v Speaker 1>against again and Parkinson. It's not tested on humans yet,

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<v Speaker 1>but it was tested in some animal models. So this

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<v Speaker 1>tell me a little bit thought too about the regulatory oversight.

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<v Speaker 1>I think this is something that we were trying to

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<v Speaker 1>get control of and understanding of, certainly for the existing

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<v Speaker 1>cannabis UH industry. I mean there's you know, the monetary

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<v Speaker 1>issues that have to be dealt with, but I do

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<v Speaker 1>also think about UM, you know, transparency in the market

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<v Speaker 1>that every cannabis product, whether it's a CBD product, and

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<v Speaker 1>I know you're doing something differently, you know there aren't

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<v Speaker 1>necessarily standards like you have when they're you know, in

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<v Speaker 1>something that's organic, Um, there are standards. So what will

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<v Speaker 1>be the oversight? What will be the standards so that

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<v Speaker 1>consumers really understand becase I'm assuming this would be over

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<v Speaker 1>the counter products, is that correct? Or would it be

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<v Speaker 1>on the same level as pharmaceutical type products. I would

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<v Speaker 1>argued in both markets because like of course I know

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<v Speaker 1>it's it's mostly will go to pharmaceutical markets, but like CBN,

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<v Speaker 1>it's going to regular customers market. So on regulatory side,

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<v Speaker 1>we have a really interesting position because a technically legal

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<v Speaker 1>on federal level even now, even almost for all our compounds.

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<v Speaker 1>It's because on federal regulations there are two lines in

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<v Speaker 1>Schedule one. One is marijuana products and marijuana products defined

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<v Speaker 1>as anything what produced from marijuana plants. We're using easts

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<v Speaker 1>and it is not plans, so we are not marijuana product.

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<v Speaker 1>And the second line is KCC is a psychoactive canna

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<v Speaker 1>be know it and it's more to use for recreational purpose.

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<v Speaker 1>Th HCV is that what you said? I just want

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<v Speaker 1>to make sure. Yeah, okay, DELTA and KHD it's mostly

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<v Speaker 1>used for occasional purpose. And it's like her active. So

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<v Speaker 1>typically is we cannot produce JC. We cannot produce JC

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<v Speaker 1>isn't in California because California legalized marijuana products but didn't

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<v Speaker 1>legalize JC. So, but all other econominoids is completely legal

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<v Speaker 1>for us. For example, we can produce CpG, it will

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<v Speaker 1>be legal on your level. CTV also will be legal

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<v Speaker 1>on your level, CBN, and many others. So we cannot

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<v Speaker 1>produce only one. We cannot produce KC. Okay, that's interesting

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<v Speaker 1>to know. So, UM just got about a minute or

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<v Speaker 1>so left here. Um, the market size that you anticipated,

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<v Speaker 1>what's the plans for your company? Do you anticipate UM

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<v Speaker 1>linking up with a major brand that we already know

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<v Speaker 1>some of these companies, whether it's a pharmaceutical company or

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<v Speaker 1>whether it's a consumer product company. Is that how you're

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<v Speaker 1>going to do it or do you plan to kind

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<v Speaker 1>of do it alone and potentially go private? What's the

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<v Speaker 1>plan here? And just got about a minute left. Yeah,

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<v Speaker 1>you're absolutely right. You're planning go through partnership with famous

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<v Speaker 1>brands and pharmaceutical companies. We're not planning to stop our

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<v Speaker 1>own brand. We don't take experience in our team police.

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<v Speaker 1>We prefer to concentrate on science and production and are

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<v Speaker 1>there any partnerships there well known brands that you can

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<v Speaker 1>talk about that you're working with right now. We have

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<v Speaker 1>a recent science serial partnership and some of them was

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<v Speaker 1>public unknownced um and we're working on multiple hours, but

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<v Speaker 1>like can not disclose all of them. So yes, we

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<v Speaker 1>work and be looking for partners were open for uh partnerships, Okay,

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<v Speaker 1>all right, and that makes sense in terms of how

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<v Speaker 1>you're going to do it? Well, Max, certainly, um let

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<v Speaker 1>us know how things are going, because this is certainly

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<v Speaker 1>a new mark it or newer market, uh, and certainly

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<v Speaker 1>a kind of a continuation of one that started just

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<v Speaker 1>a few years ago. So it'll be interesting to see

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<v Speaker 1>where it goes. Max mckefe. He is co founder, CEO,

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<v Speaker 1>and chief science officer at the biotech startup Biomedic and

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<v Speaker 1>joining us on the phone from California. Go to Bloomberg

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<v Speaker 1>dot com because our own Tiffany Carey wrote a story

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<v Speaker 1>a couple of months ago, back in October that was

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<v Speaker 1>talking how the race is on for synthetic count of

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<v Speaker 1>anoids and as Max told you, uh, they're not all

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<v Speaker 1>the same. But it's interesting, Uh, this exploration for alternative

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<v Speaker 1>compounds that have really been set off by the CBD craze,

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<v Speaker 1>so certainly something that is on our radar and certainly

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<v Speaker 1>on the radar of investors.