Australian medical cannabis company Little Green Pharma (ASX:LGP) has announced its latest purchase order and intentions to acquire land with view to expanding its operations.
LGP announced on Monday it had received a purchase order from German pharmaceutical wholesaler Deutsche Medizinalcannabis Gmbh (“Demecan”) for 9,000 x 15 gram units of LGP’s cannabis flower medicines.
In February last year, the company entered into a purchase agreement with Demacan that will see Little Green Pharma supply up to 1,000kg of LGP products annually over a three year term, with the term kicking off in early February this year after its first shipment.
Little Green Pharma also announced that in light of “higher-than-expected international market demand” for its medicines along with strong growth in local demand, it has agreed to acquire the two properties associated with its cultivation and manufacturing facilities in Western Australia, as well as two adjacent properties. In total, the properties occupy 16,000 sqm of land area.
The acquisition would enable LGP to ultimately quadruple existing cultivation capacity at the one site, while eliminating rental expenses.
In other recent news from the company, LGP last week announced delivery of the first shipment of medical cannabis oils for France’s medicinal cannabis trial. The shipment of more than 4,800 units is expected to be made available to patients later this month.
Involvement in the French trial won’t be a money spinner for Little Green Pharma as under the terms of the trial participating companies provide medicines at no cost. Still, it represents a foot in the door (albeit not one that is guaranteed) should the trial evolve into a fully-fledged national medical cannabis program.
As for how many units LGP will supply in total, that isn’t clear yet as this will be driven by patient demand over the course of the initiative.
LGP is one of only three primary suppliers for the trial, the other companies being Tilray, Panaxia, and Aurora.
“LGP’s appointment as a primary supplier into the Trial is anticipated to provide the Company with a significant first mover and reputational advantage in France and other key EU markets, including through brand-recognition and long-term key prescriber and patient familiarity,” stated the company.
France’s medical cannabis market is potentially worth €4 billion.
Little Green Pharma is a vertically integrated venture, covering everything from cultivation and production through to manufacturing and distribution of cannabis medicines.
