MediPharm Labs Australia will be entering into a 2-year agreement with Compass Clinics Australia Pty Ltd. to supply cannabis oil products.
MediPharm Labs Corp. (TSX: LABS), a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, is pleased to announce it will begin supplying finished pharmaceutical-quality cannabis oil products in Australia as part of a 2-year agreement entered into between MediPharm Labs Australia Pty Ltd and Compass Clinics Australia Pty Ltd.
Compass Clinics is a growing medical cannabis service provider focused on providing educational and consultation services to patients looking to access medicinal cannabis. In Australia, Compass Clinics opened its first two clinics in 2019 and will now begin selling its own branded products. Additional clinics are expected to open in 2020. Compass Clinics provides consultation services for patients wanting to access Medicinal Cannabis through the Special Access Scheme (SAS) or Authorised Prescriber pathways. Compass Clinics sells cannabis and cannabis oil products to patients through licensed third parties.
We are delighted to be working with leaders like Compass Clinics who are committed to offering medical patients high-quality cannabis oil products. Pat McCutcheon, Chief Executive Officer, MediPharm Labs
"As the Australian government begins to raise minimum requirements for cannabis imports, this partnership highlights the strength of our international supply chain, including our recent Australian GMP certification and import licenses, that we expect will lead to the increasing demand of our pharma-quality products and expansion of our presence in Australia and other emerging global markets," McCutcheon added.
Under the agreement, MediPharm Labs Australia will be supplying bottles of formulated cannabis oil white labelled under Compass Clinics' own brand. MediPharm Labs Australia will import the formulated cannabis oil products from MediPharm Labs Inc.'s Canadian TGA GMP certified facility, for further distribution to Compass Clinic within Australia.
"Compass is excited to be able to offer its growing Australian patient base the best in class, GMP certified and pharmaceutical quality cannabis oils and gel caps," said David Martyn, President, Compass Clinics. "MediPharm Labs is a global leading manufacturing partner and we believe they will help Compass better serve its existing patient base and continue to expand its presence in one of the fastest growing medical cannabis markets in the world."
Increasing Requirements for Cannabis Imports to Australia
At the end February 29, 2020, the Australian Therapeutic Goods Administration (TGA) had approved more than 34,500 medical cannabis scripts for patients. With patient demand expected to continue to increase, a growing number of companies have started supplying or importing products. According to the TGA, most medicinal cannabis products being supplied in Australia are 'unapproved'. Although these products are not included in the Australian Register of Therapeutic Goods (ARTG), they must still comply with relevant quality standards. As a result, the TGA recently announced it would expand the number of quality audits of medicinal cannabis products imported or supplied under the SAS and other unapproved product access pathways, making it more difficult for overseas producers to export products into Australia. MediPharm Labs Inc., with its Australian TGA GMP certification and MediPharm Labs Australia, with its Australian Office of Drug Control Licence to Import Psychotropic Substances (relating to cannabis), are considered to already meet these requirements and are well positioned to begin fulfilling Australian patient demand for finished products.
Mr. McCutcheon added, "We are starting to realize the benefits of achieving our first TGA GMP certification last year. Our licences are key assets underpinning our international supply chain platform that will create strong synergies between our Canadian and Australian operations and provide us with a continued global competitive advantage."
To learn more about MediPharm Labs, visit the company HQ here.
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