It has a vertically integrated strategy beginning with cultivation and production, through to manufacture and distribution of products.
This is made possible through a number of partnerships with industry leaders such as Canopy Growth Corp and Fundacion Daya.
The company is initially targeting medications for neuropathic and chronic pain in Australia and internationally, a market estimated to be worth $9 billion in Australia alone.
Focused on development, production and sale
AusCann is an Australian pharmaceutical company focused on the development, production and sale of cannabinoid pharmaceuticals within Australia and internationally.
This means cultivation and extraction, formulation and production, and pharmaceutical distribution and sales.
Licences are in place to enable the cultivation of cannabis and the manufacture of internationally recognised GMP quality cannabinoid pharmaceuticals.
AusCann’s interim CEO Dr Paul MacLeman said in the December quarterly: “AusCann has made important progress this quarter towards the manufacture and launch of our solid dose form capsules.
“Our pharmaceutical development and manufacturing capabilities are a key point of difference and our partner PCI Pharma is renowned for its high standards of safety and quality.”
The proprietary solid hard shell capsules for the treatment of chronic pain are scheduled for release in 2019.
The capsules will initially target a market that is estimated to be 1.9 million Australians who suffer chronic neuropathic pain.
In January 2019, AusCann through its DayaCann joint venture with Khiron Life Sciences Corp (CVE:KHRN) revealed it was to set to commence its first third-party cannabis cultivation activity.
Khiron is a third party working with the joint venture, Khiron’s core operations are in Colombia.
MacLeman added: “We’ve also made advancements in the Latin American market with our DayaCann joint venture securing an MoU with Khiron Life Sciences that has resulted in the commencement of DayaCann’s first cultivation activities with Khiron.
“We see the South American market as internationally significant following legislative changes in a number of countries which have legalised medicinal cannabis for therapeutic purposes.”
Initial focus on chronic pain market
Auscann has identified Australia’s nerve pain market as a key early opportunity for penetration.
Prescription opioids are a key current treatment for neuropathic pain and given the addictive nature and side-effects of opioids, an opportunity exists for alternative treatments.
According to a TGA publication ‘patients who used medicinal cannabis for non-MS related neuropathic pain were more likely to experience a 50% reduction in pain and a reduction in pain scores compared with patients taking a placebo.’
MacLeman added: “There are extensive unmet medical needs in this market and our aim is to provide patients with affordable and safe medical cannabis products for the relief of chronic pain.
“2019 will be a key year for AusCann as we launch our solid hard shell capsules, establish an R&D facility in Western Australia and progress to commercialisation.”
Auscann spoke to Proactive in September 2018 at the ASX Small and Mid-Cap Conference in Sydney.
In January 2019. AusCann 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 the development of innovative formulations and dose forms.
Strong balance sheet with $41 million cash
AusCann is well funded into 2019 having entered the year with $41.7 million in cash and cash equivalents on its balance sheet.
This provides the company with financial flexibility highlighted by the 7,300-square-metre Perth facility recently purchased which cost $5.25 million that was funded from the company’s cash position.