Epsilon Healthcare (ASX: EPN) has entered into a commercial partnership with medicinal cannabis cultivator Puro New Zealand to use Puro’s raw materials to manufacture and prepare finished formulation products for the UK market.
The collaboration is forecast to generate $6 million in manufacturing revenue for Epsilon over an initial three-year period — approximately 25% of Epsilon Pharma’s 2025 revenue — and exports could be expanded to the broader European region in the near-term.
Epsilon’s deal underscores the scalability, compliance, and global competitiveness of its contract development and manufacturing operations (CDMO), reinforcing its reputation as a trusted partner for supplying high-quality pharmaceutical and natural medicines.
It also reflects the company’s ongoing strategy to leverage its European Union Good Manufacturing Practice certifications and compliance, expand its manufacturing infrastructure and technical expertise, and export licensure to service international markets.
Seamless Client Support
Epsilon Healthcare managing director Peter Giannopoulos said the strategic agreement represented a significant milestone for Epsilon Pharma.
“This partnership with Puro demonstrates our capability to support clients seamlessly from manufacturing through to export,” he said.
“Our team has worked tirelessly to develop a robust CDMO platform that aligns with global standards and this agreement validates our readiness to provide international product supply at scale with reliability and excellence.”
“From an operational standpoint, it further optimises the utilisation of [subsidiary] Epsilon Pharma’s manufacturing assets and the skillset of our Australian onshore teams and reinforces our ability to deliver export-ready finished products to meet stringent international regulatory standards.”
Globally Focused Supplier
Puro chief executive officer Sank MacFarlane said the Epsilon partnership was part of the company’s evolution as a globally focused medicinal cannabis supplier.
“The UK is a cornerstone market for Puro, and this partnership enables us to translate our organic, sungrown New Zealand crops into high-value finished products for patients and prescribers under the highest global standards,” he said.
“We see this as the foundation of a long-term, strategic partnership which will support our expansion across the UK and broader European region.”
Epsilon expects the Puro agreement to start contributing to its revenue from this quarter, with a full run rate expected by mid-year.
