Medicinal cannabis players see green with new deals
21 February 2019, Written by David Simmons
There have been some major cannabis deals done today in the hallowed halls of the Australian Stock Exchange.
The two deals are set to increase access for patients looking for medicinal cannabis and improve the quality of medicines being created in Australia.
First, Althea (ASX: AGH) has signed a supply and distribution agreement with Cannvalate to assist in the distribution of Althea's products.
Cannvalate has one of Australia's largest networks of medicinal cannabis prescribing clinics and has a national footprint.
The agreement will see Cannvalate distribute Althea's products in Australia thus increasing access for those that require medicinal cannabis.
CEO of Cannvalate Dr Sud Agarwal says his company is best suited as a distributor considering its expertise in educating clinicians and pharmacists about the benefits of specific medicinal cannabis products.
"Our specialist medical panel have reviewed Althea's product range and have provided a detailed plan on how to target each of its products to the most appropriate specialists and our education team have been briefed to provide the support necessary to allow Althea to carve a strong market presence," says Dr Agarwal.
"We look forward to working with Althea and its team to ensure maximal uptake of its products in the Australian cannabis marketplace."
Althea was named the number nine cannabis company in Australia in Business News Australia's Top 20 Cannabis Companies list in 2018.
Shares in Althea are up 5.13 per cent to $0.41 per share at 12.14pm AEDT.
AusCann (ASX: AC8) continues to surge ahead with the production and manufacturing of quality medicinal cannabis products with its agreement with Canadian group MediPharm Labs.
The two have partnered up so that AusCann can purchase cannabis resin from MediPharm to enable the manufacture of AusCann's hard-shell cannabinoid capsules.
AusCann interim CEO Dr Paul MacLeman says these new capsules will address the need for stability and consistency of dose in cannabinoid medicines.
"Reliable supply of pharma-grade cannabinoid extracts through MediPharm's proprietary methodologies will support AusCann's ability to develop and deliver quality cannabinoid medicines," says Dr MacLeman.
"Critical for the company are repeatability in manufacturing, reliable dosing, and purity assurance. These product foundations will allow delivery of effective, trusted and safe medicines for the treatment of chronic pain."
AusCann Group was named the number two cannabis company in Australia in Business News Australia's Top 20 Cannabis Companies list in 2018.
Shares in AusCann are down 4.44 per cent to $0.43 per share at 11.59am AEDT.
Business News Australia
Author: David Simmons