AusCann Group Holdings Ltd (ASX:AC8) remains on track to deliver its hard-shell capsules to the market for clinical trials during 2019, having spent around $835,000 on research and development during the March quarter.
As well as the appointment of global pharmaceutical business executive Ido Kanyon as new CEO, the company continued to broaden its range of strategic partners to diversify the supply of raw materials.
In this regard, AusCann signed an agreement to purchase cannabis resin from MediPharm Labs, Canada’s largest supplier of purified, pharmaceutical grade cannabis extracts.
AusCann executive director and interim CEO Paul MacLeman said: “AusCann is well advanced in delivering its strategy to develop and produce cannabinoid pharmaceuticals and the advancements during the March quarter reflect this.
“This is demonstrated through the appointment of Ido to align the company’s leadership to the skills required in AusCann’s manufacturing and sales growth phase.
“Secondly, we have broadened and strengthened our raw material supply chain with the addition of MediPharm Labs – the reliable supply of raw resin will support the development of safe and consistent quality cannabinoid medicines with our capsules and the advancements with our joint venture DayaCann have also progressed steadily with the beginning of first cultivation activities.
“Finally, we have been investing in our product development capabilities with a dedicated new research and development facility in Western Australia – having our own in-house facility is a key point of difference, enhancing our positioning and building our product pipeline.”
AusCann’s joint venture DayaCann, a 50:50 JV with Chilean partner Fundacion Daya, started the first cultivation activities with Canadian-listed company Khiron Life Sciences.
The JV is now preparing for cultivation of plant material to be used for patients and clinical trials with the agreement resulting in staged payments by Khiron to DayaCann of $1.67 million.
The JV is the only entity licensed for cannabis cultivation in the country and will continue to focus on pursuing export licences from Chile.