Here’s the release in full
The licence enables the manufacture and supply of cannabinoid medicines, completing the supply chain for the company.
AusCann is now strongly positioned to be a leading supplier of Australian cannabinoid medicines for Australian patients, and potential export in the future.
Elaine Darby, managing director, commented: “AusCann was established to provide high quality, cost effective cannabinoid medicines for Australian patients.
“Securing both a cultivation and a manufacturing licence will enable us to achieve this aim and demonstrates our leadership position in the industry.
“In preparation for the supply of Australian produced medicines, AusCann has been actively engaged with the medical community through its educational and medical outreach program.
“AusCann has made excellent progress raising awareness and support amongst the medical community and is well positioned to become the supplier of choice for Australian patients.”
History of licenses
Today’s approval follows the Australian cultivation licences that have been granted for the company’s site in Western Australia in May this year, and in Tasmania through its strategic partnership with Tasmanian Alkaloids last month.
AusCann and its strategic partner, Tasmanian Alkaloids, are awaiting the outcome of a further manufacturing licence application for the proposed operations in Tasmania.
Operating since 1976, Tasmanian Alkaloids produces circa 40% of the world’s alkaloid raw material crop in Tasmania.
It boasts a modern manufacturing facility, which is fully compliant with Good Manufacturing Practice standards.
Tasmanian Alkaloids has established relationships with many of the world’s leading pharmaceutical companies.
Mutually beneficially relationship
Studies have shown that the inclusion of medicinal cannabis into existing pain management regimes involving opiates resulted in an improvement in pain management and quality of life outcomes, and less adverse side effects.
Cannabinoids and opioids share several pharmacologic properties and may act synergistically in pain treatment.
As such, both parties look forward to also working together to develop novel therapeutic products for the relief of chronic pain.
Furthermore, while this strategic partnership builds, AusCann is able to leverage its other partnership with Canopy Growth Corporation in the short term.
AusCann is able to import medicines from its partner Canopy Growth Corporation, North America’s largest producer of medicinal cannabis.
Momentum in medical cannabis
The positive momentum in the medical cannabis sector continues to grow with a comprehensive report by the U.S. National Academies of Science Engineering Medicine released earlier this year confirming that there is substantial and conclusive evidence for the use of medicinal cannabis in the treatment of chronic pain symptoms.
The need for chronic pain control in Australia is substantial and represents a market of over 3 million patients.
Share price reaction
AusCann shares have jumped 9.8% to $0.505 in early session trade on heavy volume.