logo-loader
AusCann Group Holdings Ltd

AusCann Group acquires R&D facility to develop cannabinoid product pipeline

The facility will support the development of existing and new cannabinoid formulations.

1548377652_757z468_1542072912_medical-cannabis-1.jpg
AusCann holds the full set of necessary licences to grow and manufacture cannabinoid medicines in Australia

AusCann Group Holdings Ltd (ASX:AC8) has acquired a 7,300 square metre research and development (R&D) facility in Perth, Western Australia.

The facility will focus on AusCann’s cannabinoid pharmaceutical product pipeline, supporting development of innovative formulations and dose forms.

READ: AusCann Group DayaCann joint venture to commence crop cultivation with Khiron

AusCann executive director & interim CEO Paul MacLeman said the acquisition of the R&D site was a major stepping stone for the company.

He said: “It allows the creation of a fully-integrated, state-of-the-art facility for medicinal cannabis.”

The facility was purchased for $5.25 million and AusCann will invest up to $6 million over time to customise and fit out the site for use during 2019.

The acquisition and upgrade costs will be funded from AusCann’s cash balance which was more than $40 million prior to the acquisition.

READ: AusCann Group shortlists candidates for chief executive officer role

MacLeman added: “AusCann’s key point of difference compared to other cannabis producers is our commitment to a rigorous pharmaceutical development program.

“[This] will now be strengthened through the establishment of our own facility to support further R&D towards bringing new products to market.

“2019 will be a major year for AusCann with the planned launch of our hard-shell cannabinoid capsules which addresses the need for stability and consistency of dose.

“Our partner PCI Pharma is manufacturing the first product line as we aim to commence the production of our capsules towards the middle of this year.”

READ: AusCann Group appoints PCI Pharma to manufacture first product line

The cannabinoid capsules are expected to be released this year and are for the treatment of chronic pain.

They will initially target a market that is estimated to be 1.9 million Australians who suffer chronic neuropathic pain.

Sufferers can access the treatment through the Therapeutic Goods Administration’s (TGA) special access scheme.

Around 3.2 million Australians suffer chronic pain and existing treatments are lacking in efficacy and have notable side effects.

Quick facts: AusCann Group Holdings Ltd

Price: $0.37

Market: ASX
Market Cap: $117.31 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of AusCann Group Holdings Ltd named herein, including the promotion by the Company of AusCann Group Holdings Ltd in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Auscann targeting pain management with Australian cannabinoid products

Elaine Darby, managing director of Auscann Group Holdings Ltd (ASX:AC8), spoke to Proactive Investors at the ASX Small and Mid-Cap Conference in Sydney. Auscann is continuing to make steady progress towards releasing its first medicinal cannabis products during the financial year 2019....

on 6/9/18

2 min read