Australian cannabis developer Cann Group (ASX: CAN) has signed two agreements for the supply of oil formulated with cannabis and dried flower products to markets in the United Kingdom and the European Union.
The first agreement is with UK-based Astral Health for oil supplies including high THC (tetrahydrocannabinol), high CBD (cannabidiol) and balanced formulations to a UK company base for several years with an option to extend.
Astral is a subsidiary of the European LYPHE Group, which specializes in medicinal cannabis solutions across distribution channels including clinics, online pharmacies, and training of health practitioners.
Supply will begin when all regulatory approvals have been received from relevant Australian and British authorities.
Cann has also signed a three-year agreement with Germany’s iuvo Therapeutics GmbH for the supply of medicinal cannabis oil and dried flower material for sale in Germany and other European countries.
Germany is the biggest drug marijuana market in Europe with a combined sales of 2019 exceeding all other European markets.
iuvo is an independent GMP certified importer and distributor with access to more than 20,000 pharmacies throughout Germany.
It is a subsidiary of the pharmaceutical company Wundr Co. which focuses on providing a diverse portfolio of medical cannabis products for European patients.
The Astral Health and iuvo agreements have been entered into with Cannoperations Pty Ltd., a wholly owned subsidiary of Cann.
All products will be formulated and packaged by pharmaceutical manufacturing companies Australian IDT (ASX: IDT).
Cann and IDT (Institute of Drug Technology) have an agreement for IDT to provide cGMP manufacturing services and support to convert Cannabis drugs produced by Cann into cGMP-quality Active Pharmaceutical Ingredients and product formulations for patients in Australia and overseas.
In December, the company announced the first commercial drug cannabis products from the Cann cultivation operation based in Australia have been packaged by IDT in preparation for this year’s release.
Cann chief executive Peter Crock said the agreement today represented “important progress” in the company’s strategy to become the producer of choice for all markets.
“We have [already] “has been able to demonstrate the ability to supply various products from certain medicinal cannabis cultivars to unique finished product formulations that meet the specific end market requirements of our customers,” he said.
“Our manufacturing arrangements with IDT ensure we can meet the high GMP standards required by leading distributors in overseas markets such as the UK and Europe.”
This is not the first supply agreement that Cann signed with a cannabis drug company that seeks to serve local and overseas markets.
In April, an agreement was carried out for the development and supply of high-quality cannabis drug products to the Australian-operated health care company Entoura.
Under the arrangement, Cann will supply the entire range of plant extract products to Entoura for distribution to Australian patients through the Therapeutic Goods Administration Special Access Scheme.
Cann has also signed a supply agreement with Zalm Therapeutics New Zealand (formerly Pure Cann NZ) which is building a patient-centered medical cannabis business that is focused on providing local cannabinoid-based medicines and the global market.
New Zealand cannabis drug regulations come into force on April 1.
At midday, shares in Cann traded 8.17% higher at $ 1,125, while shares on IDT rose 8.57% to $ 0.190
to request modification Contact us at Here or [email protected]