The CBD market is booming, with products bringing in around $5 billion in the U.S. last year. But according to Chad Collins, the retail market is littered with issues in quality, manufacturing, and transparency.
That’s why he focuses on the healthcare side.
Collins is one of the founders of Corganics, a Dallas-based provider of clinical cannabinoid to the healthcare industry. The startup directly connects professional and patient, offering organic therapeutic products that can replace, or be taken in conjunction with, traditional pharmaceuticals.
Because, as Collins puts it, “Patients deserve better.”
“Patients are asking healthcare professionals about clean, safe natural products,” he told Dallas Innovates. “We provide healthcare professionals a brand they can trust by helping bridge the gap between the healthcare provider and patient.”
Collins and his team have set out to be the most trusted and recommended clinical cannabinoid company by healthcare professionals.
To support what he calls Corganics’ “next growth chapter,” the CEO today announced that the company had received a Series A investment from Altacrest Capital, a Dallas-based private investment firm. The funding amount was not disclosed.
Altacrest focuses on consumer brands that are poised for continued meaningful growth. The team’s hands-on approach involves collaborating with founders and management teams to expand.
“We’re excited about the potential of hemp-based, clinical cannabinoid therapies and strongly believe in the strategy of involving healthcare professionals to help differentiate quality from that of the retail sector,” Brien Davis, a partner at Altacrest, said in a statement. “The partnership with Corganics’ dynamic team is a testament to our belief that there is a quality and transparency gap within the retail CBD market.”
The funding will go toward the expansion of Corganics’ clinical product portfolio, which is expected to accelerate the team’s ability to reach healthcare providers. Collins says the capital will also help scale operations, commercial 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 look forward to growing our operations to support this goal and build the most trusted clinical cannabinoid company recommended by healthcare providers.”
Bringing trust to CBD
The NIH defines cannabinoids as a group of substances found in the cannabis plant—the two main ones being THC and cannabidiol (CBD).
The state legalized the growth of industrial hemp and the sale of hemp products, like CBD oil, in 2019 with the passing of Texas House Bill 1325. And earlier this month, a bipartisan measure in the Texas Legislature expanded Texas’ Compassionate Use Program. House Bill 1535, signed by Gov. Greg Abbott, allows doctors to prescribe low-THC medical cannabis to all cancer and PTSD patients, and raises the legal THC amount to 1%.
But Collins believes there are still too many inconsistencies in manufacturing and quality in CBD retail.
Corganics touts clinical cannabinoid therapy products that are third-party tested in ISO-certified labs and manufactured in a cGMP (Current Good Manufacturing Practice) compliant and NSF-certified facility. Everything is scientifically formulated and physician-advised.
According to the company, its products contain no detectable THC.
The business model rests on what Collins says is the purity that the healthcare delivery network demands. Corganics’ portfolio, which includes clinical cannabinoid therapies 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 enter into the evergrowing—and changing—CBD conversation. “With one in five Americans purchasing retail CBD, alternative therapies like clinical cannabinoids are making waves in mainstream medicine,” he said.
With many self-treating, he and Collins wanted a way to offer products with “the potency and purity” that healthcare industry can get behind.
The company now operates both clinical and consumer health divisions, and distributes across the U.S. and other regional countries.
With the new funding round, Corganics also plans to broaden education on cannabinoid treatments. Collins says the team is “eager to educate providers and patients on the importance of label transparency and quality ingredients”—ultimately, to silence the noise in the market.
“We will continue to leverage our expertise based on our deep heritage in pharmaceuticals of building successful healthcare brands with healthcare professionals,” Collins told Dallas Innovates. “We are uniquely qualified to bring a higher quality, more transparent product portfolio to the market, also building clinical education platforms for healthcare providers.”
A rebrand and an acquisition
The funding announcement coincided with the team introducing Corganics’ new name. Formerly MD Farma, the company rebranded to reflect its steadfast mission to helping healthcare professionals become a trusted patient partner.
“Corganics speaks to our strategy of bringing the highest quality, natural products to the market,” Collins says. “We are ‘organic to our core.’ We focus on healthcare professionals that include MDs, DOs, and Pharm Ds, hence a more professional name that resonates regardless of specialty.”
Corganics also announced that it was acquiring Relief, a provider of natural, non-CBD topical analgesic products 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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