Emerging medicinal cannabis producer MMJ PhytoTech (ASX: MMJ) announced its 59%-owned subsidiary Satipharm AG has received regulatory approval to sell its cannabidiol (CBD) prescription capsule in Australia. The company also gained the German free sales certificate for its CBD, which reduces international export constraints.
In late September 2017, Australia’s Therapeutic Goods Administration gave the final nod for CBD capsules to distributed on prescription throughout the country.
In anticipation of the approval, MMJ PhytoTech’s first shipment of CBD capsules arrived in Australia in May 2017.
Meanwhile, the German free sales certificate paves the way for easier distribution of CBD capsules throughout Europe. The certificate officially defines the CBD capsule as a food supplement, which clarifies legal concerns that prevented the sale of CBD in some areas.
Additionally, the CBD capsules are the only ones in Europe to achieve the nutraceutical pharmaceutical grade, which is believed to result in increased sales opportunities within other international jurisdictions.
Throughout 2017, Satipharm’s distribution network in western Europe and the United Kingdom and Ireland has grown and the company’s CBD capsules are available throughout the regions in conventional and online pharmacies, and Amazon.
Due to expanding distribution in the northern hemisphere, Satipharm stated it expected revenues of CAD$180,000 in the first quarter of its 2018 financial year.
In addition to the abovementioned regulatory approvals, via another subsidiary, MMJ PhytoTech has applied to become a licenced dealer within Canada to enable importation and sale of the CBD capsules in that jurisdiction.
Other operational updates include approval to manufacture products containing tetrahydrocannabinol (THC), which MMJ PhytoTech, and its subsidiaries, expect will be available in Canada and Australia in the first half of next year.
A patent cooperation treaty (PCT) application was published in mid-August, which covers cannabinoid-based oral formulations.
Also, clinical trials with the CBD capsules are underway.
MMJ PhytoTech owns a 59% stake in TSX-listed Harvest One Cannabis Inc which wholly-owns Satipharm AG – effectively making MMJ PhytoTech the majority owner. Through its subsidiaries, MMJ PhytoTech has a substantial stake in operations encompassing the medicinal cannabis value-chain.
The company and its subsidiaries are currently targeting Canada’s medicinal and recreational cannabis markets, which MMJ PhytoTech estimates will be worth up to CAD$9 billion (A$9.17 billion) by 2024.