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Biotechnology company Greenlab Australia has secured a two-year deal to supply pharmaceutical-grade, cannabinoid products to Australian medicinal cannabis distributor Cannvalate Pty Ltd for sales to approved patients.
Under the non-exclusive arrangement, Greenlab will supply a range of white-labelled certified cannabis products to Cannvalate on a consignment basis for patients to access through the government’s Australian Therapeutic Goods Administration (TGA).
Approximately $2.4 million of committed revenue stream (depending on the mix of derivative products selected) is expected to flow through to Greenlab over the term of the agreement, with an option to extend for an additional year on the same terms and conditions.
The white label cannabinoid products are currently being manufactured by The Valens Company in Canada and Mile High Labs International in the UK.
Greenlab is a subsidiary of Green Relief NZ Ltd (trading as Greenlab New Zealand), which, in 2019, became one of the first companies on New Zealand’s South Island to secure a cannabis research and development licence.
It has since received the required licences to carry out cutting-edge research at its Lincoln University research facility in Christchurch, starting with an optimisation of the cultivation process and including the impact of different growing conditions and methodologies on plant output.
Cannvalate helps licenced producers fast-track their growth into the Australasian market.
It claims to be the largest network of cannabis medicine prescribers in Australia with an estimated market share of almost 50% of all medicinal cannabis prescriptions.
In 2019, Cannvalate entered into an agreement with Impression Healthcare (now known as Incannex Healthcare, ASX: IHL) to purchase and distribute Impression’s licenced medical cannabis products throughout a network of more than 1,000 prescribing doctors and 600 pharmacies.
Greenlab’s fund generation and wealth management director Rupinder Brar said the supply deal is an opportunity to pioneer New Zealand orphan plant intellectual property which responds to the need of the patients and prescribers.
“This contract will give our team of scientists vital information on the potential of New Zealand [medicinal cannabis] strains for creating unique products and recombinant medicine IP,” he said.
“This is an important development in [our] initial product strategy and will be an opportunity for [us to partner with] Cannvalate to supply prescribers with quality medicinal cannabis products.”Mr Brar said Greenlab was ready to capitalise on a growing demand from the New Zealand market for innovative medicinal cannabis products.