The company expects to see significant uptake of its Canndeo product range due to its high quality and low cost.
THC Global (ASX:THC) generated plenty of excitement today after it announced that it will soon commence the supply of its branded Canndeo medicinal cannabis products in Australia and abroad.
The Canndeo range is expected to be made available by the end of Q1 2020, and will initially include four full spectrum CBD products. The medicinal product range will be made available to patients and prescribing clinics under the Australian government's Special Access Scheme (SAS).
The company expects that the Canndeo brand will receive an enthusiastic reception from patients and healthcare professionals alike, due to the fact it offers a high-quality low-cost alternative to the current products available for prescription.
THC Global expects that more of the Australian Government's estimated 100,000 potential annual prescription demand for medicinal cannabis will come forward, attracted by THC Global being able to significantly lower cost to patient whilst offering a medicine of TGA pharma GMP standard.
THC Global also announced today that it has expanded its management team, including appointing a new Senior Distribution Channel Executive, along with increases in scientific and medical support staff.
Additionally, company confirmed that it has submitted applications for the licenses that will allow it to begin supplying the Canadian market.
Once fully licensed, THC Global plans to begin fulfilling the prescription needs of patients in Canada who have be prescribed medicinal cannabis products. The company plans to initially source its product via a white-labelling agreement with a local Canadian manufacturer, before eventually switching to medicines produced in Australia. However, this will only take place once a substantial market share has been established.
"Canndeo Canada will target the over 369,000 Canadian medical client registrations accessing medicinal cannabis under existing valid authorities," an official statement said.
THC Global will now also commence the importation of crude cannabis extract from Canada into Australia, following the release of new guidance from the Australian Office of Drug Control in early January 2020. The company intends to further process the crude cannabis extract at its industry-leading Southport Facility, before manufacturing it into GMP-certified pharmaceutical grade medicines.
The first shipment of crude cannabis extract is on schedule to be received by THC in the coming weeks, allowing the company to complete production on its first round of cannabis-derived medicine before the end of Q1 2020.
The company has also received preliminary orders from Licensed Producers in Canada for the bulk of the medicinal cannabis products produced at the Southport site, which are expected to be distributed during the second half of this year.
As a result, THC Global is currently in the process of securing the various permit applications and import and export licenses needed for the "mutual recognition" of its medicinal products in various international markets, ensuring that its global expansion plans can proceed unheeded.
News of the upcoming Canndeo launch sent THC Global stock climbing 2.70% higher today, and as of midday shares were trading for 0.380 apiece.
To learn more about THC Global, visit their company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
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