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Emerald Health Pharmaceuticals

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Important NoticeEmerald Health Pharmaceuticals Inc. (the Company) is currently engaged in an ongoing offering under Regulation A+ (Regulation A+) under theSecurities Act of 1933, as amended. The offering will be made only by means of an offering circular. This presentation shall not constitute an offerto sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitationor sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No money or otherconsideration is being solicited at this time, and if sent in response to these materials, it will not be accepted. No securities may be sold, and nooffer to buy securities can be accepted and no part of the purchase price can be received for an offering under Regulation A+ except pursuant toan Offering Circular qualified by the U. S. Securities and Exchange Commission, and any such offer may be withdrawn or revoked, withoutobligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person's indication ofinterest in a Regulation A+ offering is non-binding and involves no obligation or commitment of any kind. Our most recent Offering Circular andperiodic reports are available via this URL: https://emeraldpharma.life/sec-filings-2019/

Cautionary Note Regarding Forward-Looking StatementsTO THE EXTENT STATEMENTS CONTAINED IN THE FOLLOWING PRESENTATION ARE NOT DESCRIPTIONS OF HISTORICAL FACTS REGARDING THECOMPANY, THEY SHOULD BE CONSIDERED “FORWARD-LOOKING STATEMENTS,” AS DESCRIBED IN THE PRIVATE SECURITIES LITIGATION REFORM ACTOF 1995, THAT REFLECT MANAGEMENT’S CURRENT BELIEFS AND EXPECTATIONS. YOU CAN IDENTIFY FORWARD-LOOKING STATEMENTS BY WORDSSUCHAS “ANTICIPATE,” “BELIEVE,” “COULD,” “ESTIMATE,” “EXPECT,” “FORECAST,” “GOAL,” “HOPE,” “HYPOTHESIS,” “INTEND,” “MAY,” “PLAN,” “POTENTIAL,”“PREDICT,” “PROJECT,” “SHOULD,” “STRATEGY,” “WILL,” “WOULD,” OR THE NEGATIVE OF THOSE TERMS, AND SIMILAR EXPRESSIONS THAT CONVEYUNCERTAINTY OF FUTURE EVENTS OR OUTCOMES. FORWARD-LOOKING STATEMENTS CONTAINED IN THESE PRESENTATIONS INCLUDE, BUT ARE NOTLIMITED TO, STATEMENTS REGARDING: (I) THE SUCCESS AND TIMING OF OUR PRODUCT DEVELOPMENT ACTIVITIES AND CLINICAL TRIALS; (II) OURABILITY TO DEVELOP OUR PRODUCT CANDIDATES; (III) OUR PLANS TO RESEARCH, DISCOVER, EVALUATE AND DEVELOP ADDITIONAL POTENTIALPRODUCT, TECHNOLOGY AND BUSINESS CANDIDATES AND OPPORTUNITIES; (IV) OUR ABILITY TO DEVELOP AND MANUFACTURE OUR PRODUCTCANDIDATES AND TO IMPROVE THE MANUFACTURING PROCESS; (V) OUR ABILITY TO ATTRACT AND RETAIN KEY SCIENTIFIC OR MANAGEMENTPERSONNEL; (VI) THE ANTICIPATED TIMING OF CLINICAL DATA AVAILABILITY; (VII) OUR ABILITY TO MEET OUR MILESTONES; (VIII) OUR EXPECTATIONSREGARDING OUR ABILITY TO OBTAIN AND MAINTAIN INTELLECTUAL PROPERTY PROTECTION; AND (IX) THE IMPACT OF CAPITAL MARKET CONDITIONSON US. FORWARD-LOOKING STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN FACTORS, RISKS AND UNCERTAINTIES THAT MAY CAUSE ACTUALRESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD LOOKING STATEMENTS. UNDUE RELIANCE SHOULD NOT BEPLACED ON FORWARD-LOOKING STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE ANY FORWARD-LOOKING STATEMENTS. THECOMPANY’S INVESTIGATIONAL DRUG PRODUCTS HAVE NOT BEEN APPROVED OR CLEARED BY THE FDA.

https://emeraldpharma.life/sec-filings-2019/


• A clinical-stage biotechnology company developing first-in-class new chemical entities to treat diseases with unmet medical need

• Our technology has a unique multi-pronged mechanism of action, addressing validated targetsfor neurodegenerative, autoimmune, fibrotic & inflammatory diseases

• Preclinical studies demonstrate disease modificationwith the potential to reverse the progression of diseases which currently have no cure and cause significant morbidity and mortality

WWW . E M E R A L D P H A RM A . L I F EWWW . E M E R A L D P H A RM A . L I F E

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• Phase I completed successfully on our lead product candidate - Phase II initiation underway


Status: Private Headquarters: San Diego, CA, USAR&D: Córdoba, Spain

Focused on developing patented synthetic cannabinoid-derived drug candidates to treat diseases with unmet medical need

WWW . E M E R A L D P H A RM A . L I F E

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Emerald Health Pharmaceuticals: Key Highlights


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Broad patent protection with a US$39B market

opportunity in the first 4 targeted

diseases

New Chemical Entities (NCEs)

with the potential for disease

modification in diseases with no

current cure

Experienced biotech/pharma executives and

globally-recognized clinical

and scientific advisors

Unique Mechanism of

ActionClinical StageDevelopment

StrongTeam

Phase 1 completed on lead product

candidate demonstrating

tolerability, safety, and dosing

flexibility

Strong IP & Significant Market

Not for Distribution

NOTE: In the scientific literature:EHP-101 = VCE-004.8EHP-102 = VCE-003.2


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Development Roadmap


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Market Opportunity: ~$39B in the First Four Target Diseases

1Global Multiple Sclerosis Drugs Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2017 To 2025 Research and Markets Report 2Parkinson's Disease Therapeutics Market Global Industry Analysis Size, Share, Growth ,Trends, and Forecasts, 2017 To 2025 Transparency Market Research Report 3Scleroderma Diagnostics and Therapeutics Market Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2024 Transparency Market Research Report4Opportunity Analyzer: Huntington's Disease Opportunity Analysis and Forecast to 2024 Research and Markets Report

• Cannabidiol (CBD) & Cannabigerol (CBG)have multiple positive physiologic effects through interaction with the endocannabinoid system (ECS)

• Research indicates they are: - Anti-inflammatory- Antioxidative- Neuroprotective- Analgesic- Anti-infective- Non-psychoactive


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The Technology: Patented NCEs Derived from CBD & CBG

Source: https://carebydoctors.com/ailments-corresponding-cannabinoids/

CB1

Receptors

CB2 TRPV1

GPR55 FAAH

PPARs MALG

TRPA1

Distribution of CB1 Receptors


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The ECS Exists Throughout the Body

Health benefits;Psychoactive effects

Health benefits;No psychoactive effects

• EXPANDED receptor targeting

• FOCUSED on receptors that can treat diseases with unmet medical need

• DEVELOP composition of matter patented new chemical entities (NCEs)

• CREATE a strong IP portfolio

To improve on the positive health effects of CBD and CBG by modifying them to create enhanced new chemical entities


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Our Scientific and Pharmaceutical Approach


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Cannabinoid Science: Rational Drug Design

New, patented molecules

The Result:

• Totally synthetic NCEs• Non-psychotropic• Targeted receptor activity• Potential for disease modification• Composition of matter patents

Synthetic

CB2 TRPV1

GPR55 FAAH

PPARs MALGTRPA1

• The goal: to affect targets validated for various diseases with unmet medical need

• Our drug discovery platform focuses on targets related to the ECS without binding to CB1 receptors

Chemical modifications of the CBD molecule create new

targets and receptor binding

14 patented CBD derivatives

11 patented CBG derivatives

Molecules in our NCE Library

• Composition of matter and method of use patents

• Broad protection in the US, EU and many countries worldwide

• Protection to 2039

• Potential for multiple products and indications

16 granted, 22 pending, covering 25 molecules


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Patents


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The Unique Convergence of Cannabinoids, Science & Biology

Science

Biology

Patented CBD Derivatives (“4-series”)

EHP-101

Patented CBG Derivatives (“3-series”)

EHP-102

Cannabinoids

CBG

14 patented CBD derivatives

11 patented CBG derivatives

EHP-101(VCE-004.8)

EHP-102(VCE-003.2)

TheEHP

Platform

New ProprietaryMolecules

OtherCannabinoids

Parkinson’s disease Huntington’s disease

Neurodegenerative

Fibrotic

Ulcerative Colitis / Crohn’s

Inflammatory

Metabolic

Auto-Immune

CancerDiabetes


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Provides Many Therapeutics Opportunities

Lupus

Systemic Sclerosis (Scleroderma)

A patented CBD derivative (NCE)

• Oral formulation

• Unique multi-pronged mechanism of action

• Preclinical proof-of-concept established

• IND-enabling studies completed

• Phase I completed

• Phase II initiation underway


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Lead Product Candidate: EHP-101CBD

EHP-101

The U.S. Drug Enforcement Administration (DEA) has determined that:

• VCE-004.8 (the active ingredient in EHP-101) is not a controlled substance


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A Cannabinoid that is Not a Controlled Substance

Chronic, systemic autoimmune disease causing fibrosis of skin and internal organs

• Life-threatening orphan disease

• No SSc-specific approved drugs

• Current drugs are not effective and have toxicities

• Lung fibrosis is a common cause of death (~60% mortality in 10 years)


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EHP-101: Systemic Sclerosis (SSc) – a Form of Scleroderma

• PPARγ and CB2: extensively studied molecular targets for the treatment of scleroderma*

• Combined effect on PPARγ, CB2 and HIF have not been described for other types of marketed drugs

• Pre-clinical proof-of-concept has been established in relevant animal models

*Minghua et al, Tavarares et al, Akhmetshina et al, Del Rio et al

EHP 101 PPARγ

CB2

Inhibition of collagen synthesis

Inhibition of ERK activation

Fibroblast migrationdecrease

Myofibroblastdifferentiation

Anti-inflammatoryactivity in vivo

Anti-fibrotic activity in vivo

Vascular protection and regeneration

HIF

EHP-101 MoA targets scleroderma


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EHP-101: Why Systemic Sclerosis/Scleroderma?

Demonstrated efficacy in 2 validated SSc/fibrosis models

• Exerts potent antifibrotic effects and prevents dermal thickening

• Prevents collagen accumulation around blood vessels

• Reduces inflammation

• Prevents lung, cardiac and kidney fibrosis

• Prevents vascular damageWWW . E M E R A L D P H A RM A . L I F E

EHP-101: Efficacy Demonstrated in Systemic Sclerosis (SSc)

NATURE

MS is a chronic, degenerative, demyelinating CNS disorder

• Our molecule targets the receptors associated with MS

• Current medications provide mainly symptomatic relief (pain and spasticity) mostly during the inflammatory (early) phase of the disease

• No effective disease-modifying drugs for progressive MS

• No therapies currently can remyelinate damaged neurons

Main symptoms ofMultiple Sclerosis


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EHP-101: Why Multiple Sclerosis?

Multiple SclerosisNormal


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Damaged Myelin (Demyelination) in MS is Irreversible

Our strategy:

To improve on CBD’s known positive effectsby creating a unique new molecule that affectsvalidated targets in MS:

- PPARγ- CB2- HIF

EHP-101

PPARγ

CB2

PPARγ: Peroxisome proliferator-activated receptor gammaCB2: Cannabinoid receptor Type 2HIF: Hypoxia inducible factor

Increases Neuroprotection

Improves neuron survival

and repair

Promotes Remyelination


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EHP-101: Designed for Targeted Mechanism of Action

Reducesneuroinflammation

HIF

Demonstrated efficacy in 4 validated MS models

• Significant improvement in clinical signs

• Stops neuroinflammation and demyelination

• Remyelinates neuronal axons


EHP-101: Efficacy Demonstrated in Multiple Sclerosis


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EHP-101: Other Demyelinating Disease Opportunities

Inflammatory/ Immune

Disorders

Infectious diseases

• Human Immunodeficiency Virus• Progressive multifocal

leukoencephalopathy• Lyme disease• Neurosyphilis• Human T-cell leukemia virus-1

Granulomatous diseases

• Sarcoidosis• Wegener granulomatosis• Lymphoid granulomatosis

Demyelinating Disorders (CNS)

Neonatal intracranial hemorrhage

Demyelination associated to ischemic or

Traumatic Brain injury

Toxic/ metabolic disorders

• B12 deficiency• Central pontine

myelinolysis• Carbon monoxide• Radiation• Posterior reversible

encephalopathy syndrome

Myelin disorders

• Metachromatic leukodystrophy• Adrenoleukodystrophy• Adrenomyeloneuropathy• Globoid cell (Krabbe)

leukodystrophy• Alexander’s disease• Canavan disease

• Multiple sclerosis• Optic neuritis • Acute disseminated encephalomyelitis • Paraneoplastic• Rheumatoid arthritis • Systemic lupus erythematosus• Behcet’s disease• Sjorgen’s disease

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Developed an oral formulation and initiated manufacturing for Phase I

Applied and got US FDA and EMA grant of Orphan Drug Designation for systemic scleroderma

H1

H2

Completed final clinical-enabling studies

Completed a Pre-IND meeting with US FDA (for MS)

Initiated Phase I human study in Australia

Completed a Pre-IND meeting with US FDA (for SSc)

Completed Phase I study

SSc IND submission MS Phase II initiation

MS US IND submission

SSc Phase IIa initiation Initial SSc Phase IIa data

2017 2018 2019 2020

Received DEA determination that our NCE is not a Controlled Substance

Initiated 6- and 9-month rat and dog tox studies

Completion of 6- & 9-mth rat and dog tox studiesDesigned Phase I

protocol based on FDA feedback to be applicable for Phase II in both MS and SSc

Formed MS and SSc KOL Clinical Advisory Boards

Completed non-clinical proof-of-concept for MS and SSc

EHP-101: Our Path to the Clinic

Initiated GLP toxicity studies


SSc IND clearance

MS IND clearance

First patient in - AUS

First patient in - US

Canada SSc CTA submission

HD EMA Orphan Designation

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EHP-101: Phase I Completed

A Phase 1, Randomized, Double-Blind, Placebo-Controlled Study to Evaluate the Safety, Tolerability, Pharmacodynamics, Pharmacokinetics, and Food Effect of Single Ascending Doses and Multiple Ascending Doses* of EHP-101 in Healthy Subjects.

• 104 healthy volunteers

• Doses tested: 0.91mg to 185mg (anticipated therapeutic dose = 25mg-50mg/day)

• No clinically relevant laboratory, cardiac, or other abnormalities • PK data support intended dosage and administration regimen for Phase II

• Biomarker analysis underway for support of mechanism of action

• All doses tested were well tolerated with only mild to moderate adverse events - No maximum tolerated dose reached- Adverse reactions included mild to moderate paresthesia, headache, blurred vision

* The Multiple Ascending Dose part of the study was 7 days of dosing, in increasing doses once daily and twice dailyWWW . E M E R A L D P H A RM A . L I F E

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EHP-101: Phase I Pharmacokinetics Summary

Phase I: PK supports dosage and administration

• Maximum VCE-004.8 plasma levels (Cmax) occurred within 4 hours of dosing in all cohorts

• A proportional increase in Cmax and drug exposure (area under the curve, AUC) observed with increasing dose

• No drug accumulation observed after repeated dosing

• Anticipated therapeutic dose between 25 and 50 mg per day based on Cmax and AUC

• Daily doses in Phase II study not expected to exceed 100 mg per day

Blue: 185 mgPink: 100 mgGreen: 50 mgBrown line: 20 mgPurple line: 9 mgDark Green line: 3 mgRed line: 0.91 mg


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EHP-101: Phase I Biomarker Analysis

Drug-related biomarkers being evaluated to possibly support mechanism of action (MoA)

• Exploratory: potential to show changes related to the HIF pathway (vascular endothelial cell function; angiogenesis) and PPARγand CB2 receptor activity (inflammation & immunomodulation)

• Preliminary analysis supports EHP-101 MoA: - 19 proteins up-regulated* 6 hours post administration (Tmax 2-4h)

o 7 related to vascular endothelial cell function (HIF pathway activation), such as VCAM1, NCAM1 and ECM1

o 4 related to lipid metabolism and control of inflammation (PPARγ activation), such as APO1, APOA4, APOE and APOM

- 39 proteins down-regulated** at 6 hours post administrationo Several related to CB2 and PPARγ activation (e.g., FGB, LDHB, PCOLCE)

(inflammation and immunomodulation)

NCAM1

p = 0.0009

p = 0.009

APOA4

* Up regulation is increased expression of a gene or protein that increases a target action (e.g., activation of HIF, leading to vasculogenesis and others positive physiologic processes) ** Down regulation is reduced expression of a gene or protein associated with a process (e.g., reduction of markers mediated by PPARg/CB2 activation – anti-inflammatory/immunomodulatory)


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EHP-101: Phase II Plan (Based on Pre-IND Discussions with FDA)

SSc: Phase II, Double-Blind, Placebo-Controlled Study to Evaluate the Safety, Tolerability, and Preliminary Efficacy in Patients with Diffuse Cutaneous Systemic Sclerosis (36 patients)Primary Objective: Safety and tolerability of various doses over 12 weeksSecondary Objective: Treatment effect by Composite Response Index in dcSSc (CRISS) over 12 weeksExploratory Objectives: Treatment effect on patient-reported outcomes; treatment effect based on potential biomarkers related to the mechanism of action; molecular skin score

MS: Phase II Study in Patients with Relapsing Forms of Multiple Sclerosis (RMS) to Evaluate Safety, Tolerability, and Preliminary Efficacy (60-120 patients)Co-Primary Objectives: Safety and tolerability and treatment effect based on MRI at 6 monthsSecondary Objectives: Disease progression and disability status; MS Functional Composite and Expanded Disability Status Scale; time to first study relapse; annual relapse rate Exploratory Objectives: Treatment effect based on changes from baseline for: serum neurofilament light chain, diffusivity by Diffusion Tensor Imaging, patient reported outcome by multiple sclerosis impact scale-29, biomarkers


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EHP-101: Planned Phase II Biomarker Analysis

In addition to clinical efficacy endpoints, biomarkers will be assessed in Phase II to possibly provide further evidence of efficacy

• Examples:- Neurofilament light chain in MS patients and gene expression in skin biopsies of SSc patients

• Preclinical evidence supports the relevant biomarkers and endpoints:Ø MS: Neurofilament expression in spinal cord shows EHP-101 prevents axonal damage

and preserves myelinationØ SSc: EHP-101 reduces the expression of genes associated with fibrosis and inflammation

• As in Phase I, drug-related biomarkers will also be tested in the diseased populations (higher probability of effect with longer treatment in Phase II)


A patented CBG derivative (NCE)

• Being developed for oral delivery

• Preclinical proof-of-concept established

• Designed to target receptors and pathways involved in neurodegenerative diseases

• Clinical-enabling studies initiated

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EHP-102: Second Product Candidate

CBG

EHP-102

O

OHO

O

OHO

NHAir

VCE-003.2

EtNH2EtOH

t.a., 1.2 h71%

VCE-003


PD is a chronic, progressive neurodegenerative disorder with no current cure

• More than 10 million people worldwide have Parkinson's disease

• A disease where damaged neurons do not produce sufficient dopamine (dopamine helps transmit impulses from the brain to the muscles)

• EHP-102 provides neuroprotection, partially through PPARγ activity and reduction in proinflammatory mediators

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EHP-102: Why Parkinson’s Disease?


Demonstrated efficacy in 2 validated PD models

• Improves clinical symptoms and recovers movement parameters (motor coordination and activity)

• Reduces inflammatory marker expression

• Prevents the loss of dopaminergic neurons


EHP-102: Efficacy Demonstrated in Parkinson’s Disease

HD causes progressive breakdown of nerve cells

• An orphan disease

• EHP-102 targets PPARγ with improved activity

• Also targets other pathways involved in neuronal survival

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EHP-102: Why Huntington’s Disease?


Demonstrated efficacy in 3 validated HD models:

• Improved motor function & clinical scores

• Provides neuroprotection

• Prevents neuroinflammation

• Promotes the regeneration of subventricular neuronal cells (neurogenesis)


EHP-102: Efficacy Demonstrated in Huntington’s Disease

1Scientific RepoRtsȁͼǣͿͽ;ͿȁǣͷͶǤͷͶ;ȀͿͽ;Ϳ

ǤǤȀ

ǦͶͶǤǡǡǯ ÀǦͷǡǡǡ*ǡ ÀǦͷǡǡǡ*ǡͺǡ*ǡÀͻǡͻǡ±ͻǡ ±ͷǡǡǡ ǦͷǡǡͼǡÀͺǡͽǡͽǡǤͻǡǦͷǡǡƬÓͻ

ơγǤǦͶͶǡȋȌǡǦƪγǤǦǦͶͶǦͶͶǤγǤơǡγǡơǤǡǦͶͶǤȋȌǦǦǤƤǦͶͶǤin vivoǦȋȌǤǦͶͶǤ+ǯǦƤǡǤǦͶͶǤƪǤǦͶͶǤǯȋȌƪǤ

Cannabinoids the main active compounds of marijuana (Cannabis sativa), and its endogenous counterparts anandamide and 2-arachidonoyl glycerol have attracted the interest of the scientific community in the last decade owing to their prominent effects on neurodegenerative and neuroinflammatory conditions1 . Cannabinoids exert neuroprotective actions in various experimental models of neurodegenerative diseases, and most of their effects are mediated via the presynaptic CB1 receptor. CB1 receptor levels notably diminish at early stages of Huntington’s

ͷ××ȋȌǡǡǡǤͿͷͶͶǡǡǤÀÀǡǡǡǤCentro de ×±ȋȌǡǡǤͺVivaCell Óǡ×ǡǤͻ××±×ǡÀǡÀǡÀÀǡ×ǡǤͼ×ÀǡÀÀǡǡǡǤͽǡǡǡǤ*ǤǤǤǦǤȋǣǤǤȌǤǤȋǣǤǤȌ

rǣͿ Ͷͷͼ

aǣͺ Ͷͷͼ

ǣͷͿ Ͷͷͼ

OPEN

NATURE

Experienced Pharma & Biotech Management


Jim DeMesa, MD, MBAChief Executive Officer

30 years in pharma product development and management, including preclinical and clinical trial management, and partnering with pharma companies. 15 years as CEO of public biotech companies.

Nancy Coulson, MBASVP, Regulatory & Quality Affairs

>30 years in global pharma and biotech regulatory mgmt with J&J, BMS, and others.

Eduardo Muñoz, MD, PhDChief Scientific Officer, SAB Chairman

>30 years in biomedical research,Professor of Immunology, author of 200 articles, patents and book chapters with nearly 5,000 citations

Giovanni Appendino, PhDScientific Advisor, SAB

One of the world's thought leadersin cannabinoid research; Professor ofPharmaceutical Chemistry at the University of Eastern Piedmont; Author of 250 articles and 10 book chapters.

Alain Rolland, PharmD, PhDChief Operating Officer

>30 years of leadership experience inbiotech/pharma R&D, product, strategic and business development

Clinical Advisory Boards:MS: Emmanuelle Waubant, MD, PhD

Juan Antonio Garcia-Merino, MD, PhDSSc: John Varga, MD

Janet Pope, MD Patricia Carreira, MD

Joachim Schupp, MD, Dr. medChief Medical Officer

>30 years in clinical drug development, medical monitoring and clinical trial mgmtwith Ciba-Geigy, Novartis, & others

Rao Movva, PhDScientific Advisor, SAB

30 years in drug discovery and development; Novartis Distinguished Scientist; pioneered chemical biology efforts that led to the discovery and the understanding of TOR pathways

Lisa Sanford, CPAChief Financial Officer

>30 years of diversified finance and accounting experience in life sciences, pharmaceuticals and biotechnology.

TO LEARN MORE PLEASE CONTACT :

Jim DeMesa, MDCHIEF EXECUTIVE OFFICER

EMERALD HEALTH PHARMACEUTICALS

Bernie HertelVP FINANCE & COMMUNICATIONS

EMERALD HEALTH SCIENCES

T. 1 604 727 0106

E. [email protected]

T. 1 858 352 0622

E. [email protected]

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Thank you

Developing medicines based on cannabinoid science

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