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Be the first with the news that moves the market- MediPharm Labs’ (TSX:LABS) Australian subsidiary has entered an agreement with VIVO Cannabis (TSX:VIVO) subsidiary, Beacon Medical Australia
- Under the agreement, the company will supply pharmaceutical-grade cannabis oil products to Beacon Medical, for distribution
- MediPharm Labs Australia has received a shipment of 35,000 units of finished cannabis products and extract from the Barrie facility
- The shipment will support the company’s initial orders in the Australian market
- MediPharm Labs (LABS) is down 2.74 per cent and is currently trading at C$1.42 per share
MediPharm Labs’ (TSX:LABS) Australian subsidiary has entered an agreement with VIVO Cannabis (TSX:VIVO) subsidiary, Beacon Medical Australia.
The agreement is for the supply of pharmaceutical-grade, formulated CBD and THC cannabis oil products. MediPharm Labs Australia will provide the GMP-certified products to Beacon Medical Australia, for distribution under its own branding.
CEO of MediPharm Labs Australia, Warren Everitt, commented on the agreement.
“Just weeks after MediPharm Labs Australia was granted GMP Certification, we’re pleased to announce this agreement that underscores the burgeoning demand for our specialised skills and rapid success in converting our opportunity pipeline into tangible, revenue-generating business.
“We are excited to be working with VIVO to bring high-quality products to medical consumers across Australia and other emerging markets,” he said.
In related news, MediPharm Labs Australia has received a shipment of 35,000 units of finished cannabis products and bulk oil. The shipment came from MediPharm facility in Barrie, Ontario.
MediPharm Labs Australia will manufacture the large volume of cannabis oil into finished products. Those, along with the 35,000 units which are already complete, will support the company’s commencement of sales revenue.
The company can soon expect initial orders from customers in the Australian medical cannabis market. While recreational cannabis use is still illegal in Australia, the country legalised medicinal use at the federal level in 2016.
As of May 2020, the Therapeutic Goods Administration had approved over 46,000 SAS Category B applications for unapproved medicinal cannabis products. Approximately 83 per cent of those approvals occurred within the last year.
Australia’s legal cannabis market is currently worth approximately C$54 million and could reach over $1.35 billion by 2023.
MediPharm Labs (LABS) is down 2.74 per cent and trading at C$1.42 per share at 9:57am EDT.
