- PharmaDrug Inc. (PHRX) has expanded its product offering in preparation for the legalization of cannabis use in Germany
- It has signed a supply agreement for Dronabinol, a synthetic THC oil that currently dominates the medical cannabis oil market in Germany
- It has registered the initial product with the regulator, and it has been added to its controlled substance license
- Once launched, PharmaDrug and its Danish supply partner have planned to introduce other oils including a balanced CBD / THC oil
- PharmaDrug Inc. (PHRX) is in the grey, trading at C$0.04 at 10 am ET
PharmaDrug (PHRX) has expanded its product offering in preparation for the legalization of cannabis use in Germany.
In the immediate term, it has signed a supply agreement for Dronabinol, a synthetic THC oil that currently dominates the medical cannabis oil market in Germany.
Pharmadrug Production has already added the product to its license and the first shipment is expected this week. Sales efforts have already begun with first customer deliveries slated to begin in the current quarter. Management believes the selling of Dronabinol will serve to increase sales volumes, but should also significantly increase its pharmacy distribution network beyond its current levels.
The Dronabinol is a third-party product and Pharmadrug Production will act as a distributor much like its Bedrocan business. It is in advanced discussions with two separate manufacturers to be able to supply Dronabinol on a white label basis to be branded as a PharmaDrug product.
During the month of October, Pharmadrug Production conducted the final inspection of its supply partner in Denmark. The visit was deemed successful with the newly built cannabis oil extraction facility fulfilling all the necessary requirements to be able to supply GMP calibre THC oils to the German medical cannabis market.
It has registered the initial product with the regulator, and it has been added to its controlled substance license. The initial product will be a PharmaDrug branded high THC oil. It is currently going through confirmatory stability testing with final results and certificates of analysis scheduled for this coming January.
Once launched, PharmaDrug and its Danish supply partner have planned to introduce other oils including a balanced CBD / THC oil.
While it recently made the decision to focus its growth on cannabis oils and extractions, management believes the outcome of the recent election and the likelihood of adult-use on the horizon requires a renewed focus on cannabis flowers.
As expected, recent trends showed that cannabis oil growth is accelerating and is on a path to overtake flowers at some point in the future. That being said, the introduction of adult-use should reignite the flower market.
As such, the Company has resumed discussions to introduce a unique brand of flower to the German market. Such a product can either take the form of a third-party brand with an exclusive relationship and marketing sovereignty or a unique white label product that will carry the PharmaDrug brand.
Daniel Cohen, CEO of PharmaDrug commented,
“We are extremely excited to be able to introduce new products in the immediate to short term. Adult use cannabis in Germany is a game changer and the next eighteen months will be a crucial time for strategic positioning.”
“We are confident that the company is making the right moves to increase its pharmacy network and establish PharmaDrug as a recognized brand in the German cannabis market,” added Cohen.
On a final note, PharmaDrug was able to increase its ownership of Pharmadrug Production to 100 per cent at the end of August. It had originally purchased 80 per cent of the German distributor in May of 2019.
The previous owner and holder of the final 20 per cent went through some personal financial difficulties thereby enabling PharmaDrug to purchase the remaining equity stake at a sharp discount to both IFRS book value and what management believes to be fair market value.
PharmaDrug is a specialty pharmaceutical company focused on the research, development and commercialization of controlled substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs.
PharmaDrug Inc. (PHRX) is in the grey, trading at C$0.04 at 10 am ET.
