Perth-based medicinal cannabis producer Little Green Pharma (ASX: LGP) has secured a five-year agreement with Polish company Medezin Sp. z.o.o for the distribution of its homegrown medicinal cannabis oils and flower products.
Medezin is owned by Pelion SA, which is the largest operator in the Polish and Lithuanian healthcare sector with 30 years’ experience and annual revenue of around $3.5 billion.
Medezin specialises in services to local and offshore pharmaceutical manufacturers and distributors, helping with market access, importation, distribution and logistics, and medical marketing or repackaging.
Under the terms of the agreement, Medezin will hold exclusive rights to distribute Little Green Pharma’s products, subject to meeting certain sales hurdles.
These include capturing at least 20% of the Polish medicinal cannabis oil market and at least 10% of the high-THC (Tetrahydrocannabinol) medicinal cannabis flower market.
Little Green Pharma managing director Fleta Solomon said the new agreement sits well with the company’s global growth aspirations.
“This distribution agreement reflects [our] strategic ambition to acquire and maintain a substantial share of the total addressable market in each jurisdiction we supply to,” she said.
“We are very pleased to have partnered with Medezin to help us achieve this goal.”
Ms Solomon would not speculate on the financial value of the agreement but said the price of the distributed products would be determined by the market at the time of sale.
“Given the variable nature of the number of units likely to be sold under this agreement, the floating calculation of the minimum quota and variable pricing arrangements, [we are] unable to provide guidance on the financial impact of the agreement at this time,” she said.
Little Green Pharma and Medezin will sign a GMP (Good Manufacturing Practice) agreement prior to first shipment, which will govern the technical requirements of the products.
Legalising medicinal cannabis
With a population of approximately 38 million, Poland is the fifth largest country in the European Union.
In 2017, the country legalised medicinal cannabis for patients suffering from chronic pain, nausea and vomiting caused by cancer treatments, multiple sclerosis, epilepsy or other drug-resistant conditions.
Today, Polish doctors are able to freely prescribe products, with the national law being “open ended” and not setting a specific limit on qualifying conditions.
The Polish market relies solely on imported cannabis medicines, with flower products retailing at up to $244 for 10 grams.