Australian cannabis developer Cann Group (ASX: CAN) has signed two agreements for the supply of medicinal cannabis-formulated oil and dried flower products to markets in the United Kingdom and European Union.
The first deal is with UK-based Astral Health for the supply of oils including high THC (tetrahydrocannabinol), high CBD (cannabidiol) and a balanced formulation to the company’s UK base over multiple years with the option to extend.
Astral is a subsidiary of Europe’s LYPHE Group, which specialises in medicinal cannabis solutions across distribution channels including clinics, online pharmacies, and healthcare practitioner training.
Supply will commence when all regulatory approvals have been received from relevant Australian and UK authorities.
Cann has also signed a three-year agreement with Germany’s iuvo Therapeutics GmbH for the supply of medicinal cannabis oils and dried flower material for sale within Germany and other European countries.
Germany is Europe’s largest medicinal cannabis market with 2019 sales exceeding all other European markets combined.
iuvo is an independent GMP-certified importer and distributor with access to over 20,000 pharmacies throughout Germany.
It is a subsidiary of pharmaceutical company Wundr Co which is focused on providing a diversified portfolio of medical cannabis products for European patients.
The Astral Health and iuvo agreements have been executed with Cann’s wholly-owned subsidiary Cannoperations Pty Ltd.
All products will be formulated and packed by pharmaceutical manufacturing company IDT Australia (ASX: IDT).
Cann and IDT (Institute of Drug Technology) have an agreement in place for IDT to provide cGMP manufacturing services and support to convert medicinal cannabis produced by Cann into cGMP-grade Active Pharmaceutical Ingredient and product formulations for patients in Australia and overseas.
In December, the companies announced the first commercial medicinal cannabis product from Cann’s Australian-based cultivation operations had been packed by IDT in preparation for release this year.
Producer of choice
Cann chief executive officer Peter Crock said today’s agreements represent “important progress” in the company’s strategy to become a producer of choice for all markets.
“We have [already] been able to demonstrate an ability to supply a range of products from specific medicinal cannabis cultivars to unique finished product formulations which meet our customers’ specific end-market requirements,” he said.
“Our manufacturing arrangements with IDT ensure we can meet the high GMP standards that reputable distributors in overseas markets such as the UK and Europe require.”
These are not the first supply agreements Cann has signed with medicinal cannabis companies seeking to serve local and overseas markets.
In April, an agreement was executed for the development and supply of high-quality medicinal cannabis products to Australian-operated healthcare company Entoura.
Under that arrangement, Cann will supply its whole plant extract product range to Entoura for distribution to Australian patients via the Therapeutic Goods Administration’s Special Access Scheme.
Cann has also entered into a supply agreement with New Zealand’s Zalm Therapeutics (formerly Pure Cann NZ) which is building a patient-centric medicinal cannabis business focused on supplying cannabinoid-based medicines local and global markets.
New Zealand’s medicinal cannabis regulations came into effect on 1 April.
At midday, shares in Cann were trading 8.17% higher at $1.125, while shares in IDT were up 8.57% to $0.190