Little Green Pharma Ltd (ASX:LGP) announced on Monday it had entered into a medicinal cannabis distribution agreement with Sana Life Sciences.
Under the Agreement, the parties grant each other mutual exclusivity across the UK and Crown Dependencies for the supply or distribution of LGP 10:10 Classic Oil and other oils with the same or similar ratios. But this is subject to Sana meeting certain minimum exclusivity purchase thresholds per annum.
LGP says the agreement represents an annual revenue opportunity of A$1.44m post-ramp up for just the exclusive oil product. The agreement also covers non-exclusive supply of LGP’s Classic Oils and Desert Flame flower medicines, along with an LGP-branded flower product that is currently in development.
“… the Agreement represents a key step in LGP’s twin strategy of selling its own LGP-branded sales into the UK and EU while developing and supplying client-specific white-label strains for clients across Europe,” stated the company.
In other recent news from Little Green Pharma, the firm recently released its activities report for the quarter ending March 31, 2022 indicating unaudited revenue of $3.2 million and cash receipts of $3.0 million. These results represented increases of 30% and 100% respectively on the same previous period. The company notes its new patients increased by estimated 18% compared to the prior quarter.
It was certainly a busy quarter for the company beyond our shores – among its achievements were another significant medical cannabis supply agreement with Germany’s Demecan and being awarded an Italian government tender for flower from its Danish facility, which was acquired in June last year. In March, the firm also signed a three-year agreement for the non-exclusive supply of certain LGP products to Alkannoli LDA (“Kannoli”) in Portugal.
Here in Australia, Little Green Pharma completed the expansion of its GMP manufacturing facility in Perth and commenced its commissioning. LGP notes the expansion is intended to enable it to produce over-the-counter Schedule 3 cannabis oil products once they have been registered.
And on that note, we’re still yet to see registered over-the-counter cannabidiol products available in Australia; but there are a number of players vying to the be the first to offer them – including New Zealand’s Greenfern Industries.