++Bioxyne (ASX: BXN)++ subsidiary Breathe Life Sciences UK has received approximately $1.7 million in funding from economic development agency South of Scotland Enterprise (SOSE) to establish its UK medicinal cannabis manufacturing and distribution facility.
The commitment is comprised of a five-year loan facility to the value of approximately $1m and a grant award of approximately $700,000.
The UK is currently the second-largest medicinal cannabis market in Europe after Germany, with records showing an estimated average annual spend of around $6572 per patient in 2024.
Controlled Substances Specialist
Founded in 2018, Breathe Life Sciences is a manufacturer, wholesaler, and importer-exporter of controlled substances including medicinal cannabis, psilocybin, and MDMA.
It has expanded into a multi-national business focused on alternative therapeutics and investigational medicines, with operations and licenced manufacturing and distribution centres in Australia, Japan, the UK, and Czechia.
Breathe Life Sciences UK has secured a site in the Scottish Borders region of equivalent size to its Queensland facility, with a view to becoming a significant provider of manufacturing and distribution services to the UK medicinal cannabis market.
The company will complete its fit-out of the site and application to the Medicines and Healthcare products Regulatory Agency for the required licences in 2026.
Growing UK Market
Bioxyne chief executive officer Sam Watson said the growing UK market would underpin the success of the Scottish manufacturing base.
“The UK market is seeing tremendous year-on-year growth but its existing manufacturing infrastructure is not sufficient to keep up with local demand, which presents an opportunity for our subsidiary to enter and grow with the market,” he said.
“Establishing this facility is critical to offering clients our renowned quality and service levels, and replicating our Australian success internationally.”
SOSE chief executive Jane Morrison-Ross said the agency was keen to support the new facility.
“SOSE has witnessed inward investment enquiries increase by over 450%, with a surge in innovative life sciences and energy companies and the arrival of Breathe Life Sciences is further confirmation that our region is the place to do innovative business,” she added.
MDMA Capsule Order
Breathe Life Sciences recently announced the fulfilment of two standing purchase orders for the supply in Australia of BLSMD40 MDMA capsules for the treatment of post-traumatic stress disorder (PTSD).
“By leveraging Bioxyne’s manufacturing capabilities, the mental health sector can now source high-quality Australian-made medication for patients suffering from PTSD,” Mr Watson said.
The company has also secured an exclusive agreement with Curaleaf International for the import, manufacture, and supply of the Curaleaf Que discreet medical inhalation device for use with medical cannabis liquid inhalants.
The deal is expected to add a recurring revenue stream which supports Bioxyne’s 2026 financial year guidance of between $65 million and $75 million and forecast EBITDA of up to $13.5 million.
“This collaboration strengthens Bioxyne’s position within the medical device sector and supports our commitment to ensuring that high-quality, compliant delivery systems are available for use within the local therapeutic framework,” Mr Watson said.
