Creso Pharma set to benefit from OTC cannabidiol sales in Australia
Creso Pharma Limited (ASX:CPH; FRA: 1X8) will hit the ground running today as over-the-counter (OTC) sales of low-dose cannabidiol (CBD) products in Australian pharmacies commences.
The sale of low-dose CBD products was made possible following a decision from the Therapeutic Goods Administration (TGA) to down-schedule low-dose cannabidiol (CBD) preparations from Schedule 4 (Prescription Medicine) to Schedule 3 (Pharmacist Only Medicine).
The decision has led to CBD products containing up to a maximum of 150mg/day for use in adults that have been approved by the TGA to be sold by a pharmacist to customers without a prescription.
Products must be approved by the TGA and included on the Australian Register of Therapeutic Goods (ARTG).
This is a major development for the Australian medicinal cannabis industry and highlights a large market opportunity that is estimated to exceed $200 million per annum.
Creso Pharma’s shares have surged 700% in the last three months, but given today marks an inflection point when the group can start generating revenues from OTC sales in Australia, Creso Pharma could receive further share price support.
It is worth noting that Creso Pharma is also engaged in pre-emptive activities in advance of the relaxation of regulations in many other global jurisdictions, including the US.
Management is advancing discussions with distribution and sales groups as it prepares to expand into the US at the appropriate time.
Creso benefits from established products and distribution agreement
Creso Pharma is very well-placed to capitalise on the growing market opportunity in Australia.
The company has an existing portfolio of CBD products, currently available in Australia via prescription, including CannaQIX® 50 which is sold under the LozaCan brand.
Creso Pharma has also entered into a strategic Heads of Agreement with leading natural, sustainable health and lifestyle brand supplier Martin & Pleasance Pty Ltd (www.martinandpleasance.com) to bring Creso’s suite of cannabis-based products to the Australian market.
Martin & Pleasance has its own in-house regulatory team and an extensive workforce directly servicing over 4,000 pharmacies in Australia and New Zealand, as well as online channels, grocery and practitioner suppliers.
Creso said that discussions with Martin & Pleasance were progressing very well with both partners currently sharing information to progress potential regulatory pathways for low-dose CBD products and defining business cases, a process that will allow Creso to considerably grow its footprint with Australian pharmacies.
Highlighting the importance of this event, chairman Adam Blumenthal said, “Today is a major milestone for the Australian medicinal cannabis industry, which we anticipate will grow rapidly over the coming months.
“The TGA’s decision to allow the sale of low–dose CBD products to consumers without a prescription provides Creso Pharma with another exciting opportunity to grow in Australia and another potential revenue stream for the company.
“We will continue to work with Martin & Pleasance to define the specific regulatory pathway for our product in the Australian market and look forward to proving its superiority through the ARTG registration process.
“Creso continues to progress a number of growth initiatives in Australia and internationally, and we look forward to updating shareholders as developments materialise.”