MediPharm Labs to supply pharmaceutical-quality cannabis oil products to Beacon Medical Australia.
MediPharm Labs Corp. (TSX: LABS) a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, today announced that its subsidiary, MediPharm Labs Australia Pty. Ltd. has entered into an agreement to supply pharmaceutical-quality (GMP certified), formulated cannabis oil products to Beacon Medical Australia Pty. Ltd, a subsidiary of VIVO Cannabis Inc. (TSX: VIVO).
We are excited to be working with VIVO to bring high quality products to medical consumers across Australia and other emerging markets.Warren Everitt, CEO, Asia Pacific, MediPharm Labs
Under the agreement with Beacon Medical Australia, which has an initial one-year term subject to renewal, MediPharm Labs Australia will supply a full range of GMP-certified, formulated CBD and THC cannabis oil products to Beacon Medical Australia for further distribution under its own branding.
"Just weeks after MediPharm Labs Australia was granted GMP Certification, we're pleased to announce this agreement that underscores the burgeoning demand for our specialized skills and rapid success in converting our opportunity pipeline into tangible, revenue-generating business," said Warren Everitt, CEO, Asia Pacific, MediPharm Labs.
"VIVO's international efforts remain focused on the emerging Australian and German markets and we continue to seek out partnerships with organizations that have proven track records," said Barry Fishman, CEO of VIVO. "For this reason, we are thrilled to be working with MediPharm Labs to leverage their GMP production capabilities to accelerate our Australian market presence. We are confident this will allow us to continue to provide our Australian patients with the medical-grade products they have come to expect from the Beacon Medical™ brand."
MediPharm Labs Australia Nearing Commercialization and First Revenues
MediPharm Labs also announced that MediPharm Labs Australia has received a large shipment of 35,000 GMP-units of formulated finished products and a large volume of bulk oil for further manufacturing into finished products, from its Barrie, Ontario facility to meet its burgeoning customer needs within the Australian domestic and export cannabis markets.
Australia remains one of the fastest growing medical cannabis markets in the world. According to the Therapeutic Goods Administration (TGA), the rate of medical cannabis approvals is accelerating in Australia. Up to May 31, 2020, the TGA had approved over 46,000 SAS Category B applications for unapproved medicinal cannabis products, with 83% of all those approvals occurring in the last 12 months alone.1 Currently, the Australian legal cannabis market is estimated at US$40 million, and as a result of various recent regulatory changes is expected to grow to US$170 million by next year, and over $1 billion by 2023.2
"Since we expect to expand our international distribution of proprietary cannabis concentrate products for sale globally, we intend to continue to use our Barrie, Ontario facility to supply finished goods to complement our asset in Australia," said Warren Everitt, CEO, MediPharm Labs Australia. "Having two GMP-certified manufacturing platforms integrated into a global supply-chain gives us flexibility to respond to global demand in an efficient and effective manner for our customers."
"By leveraging our deep scientific, production and regulatory expertise, we have created two strong GMP certified manufacturing platforms, secured all licenses necessary to operate on a multi-jurisdictional basis and developed a very attractive portfolio of international supply agreements that will make great use of our industry-leading pharma-quality capabilities," said Pat McCutcheon, CEO, MediPharm Labs. "We have a very clear roadmap for international expansion and now the means to begin achieving our objectives in a risk-managed but assertive fashion."
To learn more about MediPharm Labs, visit the company HQ here.
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