Australia’s blossoming medicinal cannabis industry is poised for a year of growth following regulatory changes made by the Therapeutic Goods Administration (TGA).

From 1 February 2021, pharmacies around Australia will be able to sell low-dose cannabis oil (commonly called CBD oil) over the counter to customers without prescriptions. Following the changes, consumers will legally be able to purchase approved CBD oil products with a maximum daily dosage of 150mg to assist with sleeplessness, pain, or anxiety.

Research compiled by FreshLeaf Analytics suggests the Australian market for medicinal cannabis products could be as large as half a million people, but only 5000 active patients currently use these treatments.

Oil products are the most common type of cannabis product used in Australia, accounting for two-thirds of the current market.

Although products will need to be approved for sale under the new regulations, the changes will create a pathway to market and help patients access products in the future, according to Peter Crock, CEO of ASX-listed cannabis company Cann Group.

The new ruling on maximum daily dose level also demonstrated the value of having a “legitimate industry voice” to engage with the government and its agencies to enact positive change, Mr Crock added – referring to his work as chair of the Medicinal Cannabis Industry Australia.

Pot stocks rose following the TGA’s initial interim ruling on over-the-counter CBD oil purchases in September, and many have carried that upward momentum through into December.

With local regulatory changes opening a door for the domestic industry, and the 2020 US Presidential elections ushering in the possibility of federal cannabis reform overseas, some Australian cannabis companies will see economic benefits.

Cann Group looks to expand production

As this unfolds, Cann Group is in the process of building a new production facility in Mildura, in regional Victoria. Stage 1a of the project will give Cann Group the capacity to produce the equivalent of 12,500 kilograms of dry flower, with the first materials to be processed and released by March 2022.

“It’s a really exciting time, in terms of what will be a world leading facility, in terms of the technology that we’re using in there, and at a scale that’s really important – to ensure we’ve got a globally competitive cost base to work with,” Mr Crock said.

Mr Crock recently joined us for our fortnightly webcast ‘The Insider’. This article summarises some of the information he shared with us during the session. You can watch a full recording below, or you can click here to book into our next session where we will be joined by Lotus Resources Limited (ASX:LOT) and Matador Mining Limited (ASX:MZZ). 

‘The Insider’ is a great way to hear directly from the CEOs of fast growing Australian businesses. You will get valuable insights to their industries and companies future prospects.

The Insider – Event Details:

Date: Wednesday, 20th January Time: 12 pm AEDT Format: Online, 2 x 15 minute presentations

This is a free event. Click here to book your spot.

Sources:

• ASX pot stocks are getting high after TGA interim ruling
• Cannabis stocks are finishing 2020 on a high; Cann Group, Bod announce new European orders
• Australia’s cannabis sector can reach further highs in 2021 – here’s how it’ll happen
• 2021 is giving us over-the-counter medical cannabis
• FreshLeaf Analytics Publishes “Most Comprehensive” Study of Australian Cannabis Market