Once extracted, the resin will be used as an active pharmaceutical ingredient for either purchase or to produce GMP medicinal cannabis oil products at IDT’s facilities.
The next step for the cannabis oil will be stability testing with the products targeted for commercial release in late March.
According to the joint venture, the resin extraction represents the first commercial-scale resin extraction activities from Australian grown cultivars.
Cann chief executive officer Peter Crock said the commercial-scale extraction of medicinal cannabis resin from the company’s locally cultivated material represented an “important milestone” in the company’s path to commercialisation.
He added it also reinforced the value of the manufacturing agreement with IDT.
“This facilitates the manufacture of finished product formulations and puts us a step closer to launching our own locally sourced and produced range of medicinal cannabis treatments to satisfy both domestic demand and to help develop valuable export pathways,” he said.
Meanwhile, IDT chief executive officer Dr David Sparling said the achievement was key evidence of the company executing its medicinal cannabis manufacturing plan.
He noted its was also a key step in establishing IDT’s Boronia manufacturing campus as a facility for converting medicinal cannabis into API products and finished dosage forms.
Under the Cann and IDT agreement, the finished products will encompass arrange of formulations including high THC and CBD chemistries as well as balanced formulations.
IDT will be responsible for formulating and packing the products which will then be distributed via the Special Access Scheme to Australian prescribers and patients.
Cann also plans to export the products overseas.
This morning’s news pushed Cann’s share price up more than 22% to $1.22, which IDT’s shares gained 14.29% to trade at $0.16.