NZ medical cannabis company Eqalis has inked an agreement with Australia’s Novachem to bring Eqalis medicinal cannabis products into the Australian market.
Established in 2019, Bay Of Plenty based Eqalis has a GMP certified manufacturing facility in Katikati, which is licensed to produce cannabis-based active ingredients and finished medicines. The company also has two outdoor cannabis cultivation facilities.
The agreement between Eqalis and Novachem will enable the distribution of the former’s active pharmaceutical ingredients (API) and finished products to Australian manufacturers, pharmacies and patients. It’s expected exports from Eqalis to Australia will kick off this year, pending a green light from New Zealand’s Medicinal Cannabis Agency.
“Australia is a leading market for cannabis-based medicines, and we’re thrilled to be a first mover across the Tasman as we cater to demand for our high quality, affordable product to a broader market,” said Eqalis Managing Director Greg Misson.
Novachem’s Cannabis Products and Business Development Manager Andrew Heath said the agreement was a fantastic opportunity for all involved.
“Australian regulations and controls restrict Australian distribution companies sourcing finished products for wholesale supply,” said Mr. Heath. “Our ability to sponsor and provide the Eqalis product for patients in Australia is a win-win trans-Tasman partnership.”
Beyond Australia, Eqalis has its sights set on other jurisdictions as well, with “several” deals in its pipeline that the company expects to announce in the months ahead.
“As more countries legislate for medicinal cannabis products, we are gearing up to provide our API and finished products to patients across the world,” said Mr. Misson.
It’s certainly been a busy time for Eqalis.
In December last year, we reported the firm had signed a binding term sheet with another NZ medical cannabis company, Cannasouth Limited (NZX:CBD), concerning a 50:50 merger between the two companies. It appears that deal is still moving along.
“Together Cannasouth and Eqalis have greater ability to shape the New Zealand industry and make an impact offshore, which we’re incredibly excited about as we focus on reducing costs and delivering better outcomes for patients,” said Mr. Misson.
Mr. Misson says the combined strengths of the companies will bring true vertical integration, with the result being a substantial lowering of costs to patients using medicinal cannabis.