Medical cannabis companies Australian Natural Therapeutics Group (ANTG) and Clever Leaves Holdings have signed a CBD, THC and flower supply deal.
Clever Leaves is a Florida-headquartered, Nasdaq-listed multinational operator and licensed producer of pharmaceutical-grade cannabinoids that operates more than 2 million square feet of greenhouses on two continents. ANTG produces cannabinoid based medicinal treatments, its own strains of medical cannabis, and carries out ongoing related research.
Clever Leaves announced yesterday it had struck a four-year take or pay supply agreement with ANTG involving the CBD isolate and THC crude oil from its operation in Colombia, and THC dried flower from its operation in Portugal. ANTG will utilise these products to manufacturer prescription medications certified to global standards, and for research and development purposes.
“ANTG’s research focus, pharmaceutical certifications and distribution capabilities are aligned with our mission to produce high-quality cannabinoid-based medicinal treatments that can meet patient needs,” said Clever Leaves President Andrés Fajardo.
While ANTG cultivates its own strains, CEO Matthew Cantelo said the arrangement will ensure continuing supply and a greater choice of medicines for ANTG’s patients in Australia.
Clever Leaves noted this was the largest supply agreement it has signed with an Australian cannabis company, and the deal was worth US$7.8M (AUD ~$10.75 million at current exchange rates).
While legal medical cannabis access is by no means a free-for-all in Australia, its use is rapidly growing. Between the beginning of February 2021 and the end January 2022, Australia’s Therapeutic Goods Administration issued 125,185 SAS Category B approvals for scripts for unapproved medicinal cannabis products. Up to 31 January 2022, the TGA had approved over 210,000 SAS Category B – and that’s since 1992; indicating a huge relatively recent increase in approvals.
The SAS Category B scheme is the route most often taken for accessing medical cannabis in Australia. Clever Leaves says Australia’s medical cannabis market is rapidly expanding and is expected to grow to US $1.2 billion by 2027, becoming the 5th largest in the world.
It’s been a busy time for ANTG – in other recent news from the company, ANTG announced it had been granted approval by New Zealand’s Ministry of Health for local use of three Australian medicinal cannabis dried flower products.