The Australian pharma landscape is in for a notable change with the down-scheduling of low-dose cannabidiol (CBD) products to Schedule 3 (S3) or ‘pharmacist only medicine’ – and one health and wellness innovator’s proven capability to take brands to market ‘first and fast’ puts it in a unique position to be a pioneer in the industry.

Medicinal cannabis is growing increasingly popular for its efficacy with relieving pain, stress and anxiety without the psychoactive side effects associated with the recreational use of marijuana.

Valued at US$6.8 billion in 2020, the global medicinal cannabis market is expected to achieve a 23.6% CAGR from 2021 to 2030, taking the market up to US$53.8 billion.

Now the much-awaited product is on the verge of becoming an over-the-counter medicine on Australian pharmacy shelves for the first time.

In November 2020, the Therapeutic Goods Administration (TGA) approved the sale of low-dose CBD products under its S3 scheme – making it possible for Australians to get relief on a range of ailments through the use of medicinal cannabis without the need for a doctor’s prescription.

For the first few Aussie companies entering the S3 over-the-counter space, the expected ballooning of a derestricted market presents an untapped opportunity.

Health and wellness innovator Wellnex Life (ASX: WNX) see themselves as potential winners in this market considering their proven knowledge of the TGA approval process, and successful joint ventures and manufacturing contracts with the likes of Chemist Warehouse and global pharma giant GlaxoSmithKline (GSK).

While competitors are also vying for top spot, some are doing so with the downside of larger amounts of capital expenditure. Wellnex Life’s position is capital light and the company has the right mix of ingredients to be a first mover.

When a new sector is formed and first movers enter the market, pharmacy shelf space is limited and brand loyalty among consumers is built early – meaning the opportunity exists for Wellnex Life to quickly become a dominant player.

Aside from this opportunity, Wellnex Life is fast evolving as a key player in the wider $10.7 billion (as at February 2022) Australian health and wellness market.

The company is demonstrating rapid growth, guiding revenue for Q1 FY23 at $6.8 million, +78% above Q1 FY22 and is on track to achieve its projected $29 million revenue and positive EBITDA targets for this full financial year.

Join Wellnex Life CEO George Karafotias for an investor briefing next Thursday, 29th September at 12pm (AEST), to understand the S3 medicinal cannabis opportunity and how the company is positioned to be a big winner in the emerging industry. Click here to book in.

Reach Corporate provides Corporate Advisory Services to WNX and have been engaged by them to manage their investor communications.

Past performance is not a reliable indicator of future performance.

Sources:

• Allied Market Research, Medical Cannabis Market Insight – 2030
• tga.gov.au, Over-the-counter access to low dose cannabidiol
• CANN Group Limited,  Company Announcement