Creso Pharma (ASX:CPH) is expected to benefit from the Australian Federal Government’s recent move to facilitate faster access to medical cannabis for patients in Australia.
The company’s shares were last trading 13% higher intra-day on Friday, at $0.305.
The Federal Government has authorised the import of medical cannabis by approved providers from international sources to boost local supply until domestic production meets Australian needs.
Importantly, Creso’s exclusive facilitator in Australia, Health House International, has been granted an import/export licence.
Creso is a pioneer in cannabidiol (CBD) innovation and develops cannabis and hemp-derived CBD nutraceuticals and medical cannabis products for human and animal health.
The company started trading on the ASX in October 2016, following a successful A$5 million capital raising that was significantly oversubscribed.
Earlier this year, Creso secured a letter of intent with Health House for the import and sale of cannabis products.
The new government policy will allow importers to source supplies of medicinal cannabis from abroad, shortening the timeframe required to supply patients.
The legalisation of medical cannabis last year by the Federal Government allows patients with a valid prescription to possess and use approved medicinal cannabis products.
The changes put medical cannabis in the same category as restricted medicinal drugs such as morphine.
Furthermore, there are new efforts to decriminalise medical marijuana in Australia following the New South Wales State Opposition introducing a bill into State Parliament this week.
The bill aims to allow medically-certified sufferers to carry small amounts of cannabis of up to 15 grams.
New South Wales has already begun trialling medicinal cannabis for cancer sufferers and children with epilepsy.
The Australian medical cannabis market represents an attractive opportunity for Creso and the company is well placed to capitalise on further decriminalisation efforts.