Medical cannabis device company InhaleRx (ASX: IRX) has inked a deal with cannabinoid producer Cannim that is expected to increase distribution and choice of medical cannabis products for doctors and patients across Australia.
Under a new commercial agreement, Cannim will use InhaleRx’s Medihale pods and inhalation devices to deliver its unique cannabinoid formulations to its patients.
The deal is for an initial two-year term with a further two-year extension available.
Speaking with Small Caps, InhaleRx chief executive officer Matthew Golden said an exciting aspect of the deal is that it will expand the formulation options currently available to prescribing doctors and patients.
The company has an existing partnership with Melbourne-based EC Pharma which uses the Medihale device to deliver its cannabinoid formulations to patients.
“EC Pharma has a number of excellent products, but Cannim has another series of products. Some of their material is sourced from Jamaica and I know the new offerings they will bring to the market will be different to EC Pharma,” Mr Golden said.
“This is an opportunity to bring a high-quality product to the Australian market in a format where patients who have already been prescribed Medihale, perhaps using the EC Pharma formulation, will now have multiple other pods developed by Cannim that will fit their inhaler as well.”
“It’s also an opportunity for a large distribution channel,” he added.
Long-term relationship and potential for expansion
Mr Golden described the agreement as the “first step in a longer relationship”.
He said like many others, Cannim is interested in using the Australian market as a test because it’s a large, growing and highly regulated market.
When asked if there was scope to expand into other international markets, he said “I think there’s opportunities that we’d be interested in looking at with them as we move down the track”.
Mr Golden also said the deal was non-exclusive and that InhaleRx continue to be open to additional partnerships that offered new and expanded benefits to patients.
Established in 2017, Cannim invests in cannabis farms, production facilities and research programs in Jamaica and Australia and operates alongside an international network of Good Manufacturing Practice (GMP) compliant manufacturers and channels to market.
“Cannim have been developing cannabis products for the Jamaican and Caribbean markets for quite a while and source a lot of their material from Jamaica. They are also setting up for farming and production in Australia, and they already supply to parts of Europe,” Mr Golden said.
He added that the two companies have been in talks for some time about a potential partnership and how they can work together, and he is confident that their values align.
“It’s clear to me that Cannim follow the same line of thinking that this is a medical product and as such, is regarded in the same way as a cardiovascular or other drug in the pharmaceutical market.
“I think that’s important because the market is split between that recreational push and the medical push. We very much want to focus on the medical side and Cannim are of the same mindset,” Mr Golden said.
Jamaica’s vast horticulture experience
Mr Golden acknowledged the perceptions surrounding cannabis products and its long history of non-commercial and recreational use in Jamaica but said this gives the region a competitive advantage in terms of vast experience in cannabis horticulture.
“There’s a recreational image of Jamaican cannabis that’s linked to religion and society in general, but what that translates to in terms of medical cannabis is a breadth of experience in cross-breeding, genetics and horticulture.”
“This is what Cannim has done and that’s a huge benefit,” he said.
InhaleRx officially rebranded from Lifespot Health six weeks ago following its strategic change of direction from promoting skin cancer screening technology to the development of inhaled medicine delivery systems.
Its Medihale portable device uses a tamper-resistant pod to deliver medical-grade cannabis e-liquids for inhalation.
Patients can receive a prescription for Medihale from their local clinic via the Special Access Scheme portal run by Australia’s Therapeutic Goods Administration (TGA) or by approved prescribers.
Earlier this month, the company was recognised at the nation’s annual Cannabis Industry Awards for its innovative technology.