Impression Healthcare (ASX: IHL) has inked a deal with a new manufacturing partner that will enable it to distribute cannabis oils and potentially capsules throughout Australia.
The company today announced the signing of a memorandum of understanding and although the identity of its partner has not yet been revealed, Impression has described it as an “established and reputable” Canadian pharmaceutical company.
According to Impression, considerations under the MoU will include a wholesale cannabis oil supply agreement and the guaranteed supply of formulated, filled and labelled bottles for distribution.
In addition, this new partner may provide soft gel capsules for the manufacture of Dronabinol, in support of Impression’s licence agreement with Resolution Chemicals announced earlier this month.
This deal is a big achievement for Impression, having started off in late 2016 with dental healthcare products (which remains a key focus) before recently branching out into the medicinal cannabis field and having completed a number of deals in the space.
Impression chief executive officer Joel Latham said it was another “exceptional opportunity” for the company to distribute high-quality cannabinoid medicines into the Australian market with a “proven and experienced manufacturing partner”.
Lodged licence application
Last week, the company announced it had lodged its licence application to “possess and supply scheduled substances including cannabinoid medicines” in Australia.
Once issued, this licence will allow Impression to sell approved cannabinoid medicines throughout Australia under the Special Access Scheme and through the Authorised Prescriber Network, as well as import and export the medicines to and from the country.
Impression is anticipating the approval of the licence by about February.
Mr Latham said the newly signed MoU was a “natural follow-on” to the submission of the licence application.
Speaking with Small Caps, a spokesperson for the company said it “made sense” to be executing MoUs now as the estimated timeframe for approval may be able to roughly coincide with getting cannabis oils from the Canadian manufacturer.
Packaged cannabis oil products are considered valuable for a wide range of indications relevant to multiple medical fields.
These include the control of neurological problems, such as epileptic seizures, multiple sclerosis and Tourette’s syndrome. Inflammatory issues such as arthritis, irritable bowel syndrome and Crohn’s disease, among many other medical complaints, may be countered with different mixes of cannabis-based oils.
In addition, “balanced” cannabis oil products, where cannabidiol (CBD) is combined with the main psychoactive compound of cannabis, tetrahydrocannabinol (THC), has been said to help with pain management.
Doctor outreach program
Impression believes striking a deal with its new manufacturing partner will progress the development of the company’s distribution plan, as cannabis oils are relevant to a wider range of doctors in the medical profession.
Mr Latham said, “Having product security over a range of pharmaceutical-grade cannabis oils from a proficient supplier will be important to the ongoing development of our doctor and patient outreach programs”.