Creso Pharma set to benefit from OTC cannabidiol sales in Australia

By Trevor Hoey. Published at Feb 1, 2021, in ASX Biotechs

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.”


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X