As a result, the overall number of approved applications for medicinal cannabis products has climbed to approximately 67,000.
The Therapeutic Goods Administration (TGA) approved a record number of patients for medicinal cannabis treatment last month under the Australian Government's Special Access Scheme (SAS) Category B pathway.
During September more than 6,000 patients were approved under the SAS, representing the highest monthly increase since the program's inception in 2016.
We expect the market to continue to grow, generating in excess of $150 million in sales next year. We also expect significant consolidation as the number of players and product companies in the sector is excessive for the size of the market. Some Australian players will start to report meaningful revenues from overseas sales, mostly to Europe. FreshLeaf Analytics Managing Director, Cassandra Hunt
As a result, the overall number of approved applications for medicinal cannabis products has climbed to approximately 67,000, with September's intake representing an 18% increase on the previous month.
However, while Australia's patient count is rising, the size of its cannabis consumer base still remains relatively small compared to its international counterparts.
The data's publication follows a recent report from FreshLeaf Analytics—which operates as a division of Southern Cannabis Holdings—which predicted that cannabis industry revenue would triple in 2020, growing to roughly $95 million.
Additionally, the Australian market is expected to undergo further growth during 2020 thanks to the government's recent decision to authorize the sale of over-the-counter low dose CBD.
This was a particularly timely move, as these drugs already make up approximately 20% of cannabis products currently available to consumers.
"The main change in the next 12 months will be the down scheduling of CBD S3. A final decision is expected on November 25, and we expect that if companies are able to successfully register their products, there may be products available late 2021 or early 2022," FreshLeaf Managing Director Cassandra Hunt said.
"There are now 150 products in the market fighting for share. Scale is a second factor. Some of the products being supplied now in Australia are derived from raw materials that are increasingly being cultivated and produced on a large scale bringing down cost per unit,"
"Unsurprisingly Melbourne based companies have been affected more [by the pandemic]. On the services side most clinics and doctors have moved to a tele-health based model and are seeing a lot more patients with COVID-19 related anxiety."
This pot stock could reach new heights in 2020 due to Coronavirus
The COVID-19 pandemic is showing no signs of slowing down, and as global markets enter meltdown many cannabis companies are feeling the effects of capital crunch.
While the market crash will continue for some time, it represents a golden opportunity for investors who are capable of riding out the volatility until share prices rally.
Luckily, one pot stock has developed antimicrobial drug that can already treat two superbugs while limiting their ability to develop antibiotic resistance.
Investors can also start picking up shares at rock bottom prices, as global investor sentiment continues to dampen thanks to COVID-19.
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