MedMen Enterprises announced that New York’s Department of Health has approved MedMen’s request to manufacture and sell cannabis-infused lotions and topical pain-alleviating sprays for qualified medical marijuana patients. MedMen’s four stores in New York currently offer vaporiser pens, tinctures and gel caps in five different formulations. Earlier this year, the state also approved MedMen adding ground flower in the form of metered pods to its product selection.
MedMen is one of only 10 companies licensed to manufacture and sell medical marijuana in New York. In April, MedMen opened its flagship store on Fifth Avenue, only one of three licensed dispensaries in Manhattan. MedMen operates a cultivation and manufacturing facility in Utica, New York, and four dispensaries statewide. The company operates licensed facilities in California and Nevada, and recently signed a definitive agreement to acquire the assets of Florida-based Treadwell Nursery, including rights to open 25 stores in that state.
New York continues to expand its medical marijuana program. Recently, State Health Commissioner Howard Zucker filed emergency regulations allowing cannabis as a substitute for opioids, making medical marijuana legally accessible to patients currently using prescription opioids to treat severe pain.
We have said from the start that we love the MedMen branding and positioning – market leaders in those areas. However, their execution to date is still unproven and the valuation is simply ridiculous ($1.74bn at time of writing). However, their move into Florida and strong positioning on the East Coast do make us very bullish on their long-term future. We continue to monitor closely from the sidelines but have yet to take a position.