Auscann Group Holdings Limited (ASX:AC8), a leading medical cannabis company, has received an import permit under its existing import licence.
Following this development, the company will soon receive finished cannabis oils from its major shareholder, Canopy Growth Corporation.
AusCann and Canopy Growth are pursuing opportunities in several key areas in Australia including the importation, distribution and local production of medical cannabis products.
AusCann managing director Elaine Darby said: “Our ongoing relationship with Canopy Growth offers major benefits for AusCann and we are very pleased to be working with Canopy Growth as the Australian market expands.
“The combination of this arrangement and our strong partnership with Tasmanian Alkaloids, positions us to be the leading supplier of affordable, effective and clinically-validated cannabinoid medicines to the Australian market and select international markets.”
AusCann's vertically integrated business model
Initial import of pain relief products
AusCann will initially import the Canopy Growth-supplied AusCann branded products for chronic and neuropathic pain control known as AC 5:5, AC 0:9.5 and AC 15:0.
Each name represents the ratio of tetrahydrocannabinol (THC) to cannabidiol (CBD) in each product.
Potential distribution of Spectrum Cannabis
Canopy Growth and AusCann are working together on developing an arrangement whereby the former will also supply AusCann with its Spectrum Cannabis branded products.
This would see AusCann distributing the product into the Australian market alongside existing AusCann products.
Spectrum Cannabis is Canopy Growth’s international medical brand, operating under a simple colour-coded system to classify its medical cannabis products.
Cashing in on distribution network
The intention is for both parties to undertake the distribution of AusCann and Spectrum products through existing and future distribution networks.
Australian Pharmaceutical Industries has a network of 466 high profile brand pharmacies with representation in every state and territory in Australia.