Australia’s AusCann (ASX: AC8) has announced it has entered into a Heads of Agreement (HoA*) with a major Australian wholesaler of pharmaceutical products.
You may not have heard of Australian Pharmaceutical Industries Limited (ASX: API), but most Aussies would be aware of some of its brands. API is the parent company of Priceline Pharmacy, Soul Pattinson Chemist and Pharmacist Advice. Close to 600 stores are in its stable and 750 pharmacies are participating in Club Premium, API’s member program.
The HoA is in relation to the future distribution of AusCann’s medical cannabinoid products across Australia. Until such time that AusCann is producing medicines of its own, it will import them from Canadian partner Canopy Growth Corporation for distribution throughout the country.
AusCann Managing Director Elaine Darby said the arrangement further builds on the company’s supply chain and firmly positions it as a leader in the local medical cannabis industry.
AusCann also stated its Medical Outreach Program is providing education and support to Australian doctors, assisting them with advice so practitioners can confidently prescribe medicines to patients.
In other recent AusCann related news, the company welcomed an announcement last week that Canopy Growth was teaming up with the Victorian State Government to further develop medical cannabis production research and technical capabilities in Australia, working on new approaches to cultivation and manufacturing.
Canopy Growth is a major player in Canada and increasingly, on the global stage. According to the company, it serves over a third of the estimated medical cannabis patients in Canada – 69,000+ people. It has quickly expanded its reach beyond its native shores and now operates in seven countries.
AusCann is initially targeting medications for treating neuropathic and chronic pain, which it says is a $9 billion opportunity in Australia alone. The company is currently also active in Chile, where its 50:50 joint venture, DayaCann, planted its second medicinal cannabis crop last month.
*While a Heads of Agreement sounds pretty fancy, it’s just a non-legally binding document between two parties concerning the proposed terms of a future deal. Basically, it’s a non-binding agreement about another agreement.
