MMJ Phytotech eyes Australia

Published at Oct 13, 2015, in ASX Biotechs

There are signs the Victorian government’s move to legalise medical cannabis could open up a new industry, with pharmaceutical player MMJ Phytotech (ASX:MMJ) saying it would now look at the Australian market on the back of a regulatory win.

The Victorian government, led by Daniel Andrews, recently announced that it would introduce legislation before the year was out which would allow locally manufactured cannabis products to be supplied to those with serious medical conditions.

These can include illnesses such as cancer, multiple sclerosis, HIV/AIDS, epilepsy and chronic pain.

“I’ve seen first-hand how medicinal cannabis can change people’s lives. This landmark reform means Victorian families will no longer have to decide between breaking the law and watching their child suffer,” Andrews said at the time, backing up sentiment from health minister Jill Hennessy.

“Victoria is leading the way on legalising medicinal cannabis because we know the difference it can make to a patient’s quality of life, and because we know the evidence is growing in support of it as a treatment option in exceptional circumstances,” she said.

The move from the government came from a review done by the Victorian Law Reform Commission, which found that the use of locally manufactured cannabis products to treat the ill should be allowed in “exceptional circumstances”.

It also recommended that growers and providers of medicinal cannabis products should be licensed by the state.

MMJ Phytotech, which has started sales of its first cannabinoid pill overseas has now flagged its interest in working in Australia, saying its experience would give it a natural advantage over start-ups.

“Our expertise in the medical cannabis market positions us at the forefront of the embryonic industry in Australia,” chief executive Andreas Gedeon said.

“Through our investigations into the opportunity in the market we hope to one day become one of the leading providers of safe and secure medical cannabis in the state of Victoria, Australia.”

On the federal front, there is a private members bill currently being considered by the Senate which would allow for the manufacture and sale of medical cannabis products on a wider scale.

It was sponsored by representatives from the Greens, Liberals, Labor, and crossbencher David Leyonhjelm.

Meanwhile, it told shareholders that it would be able to produce from its Duncan facility in Canada by the first quarter of next year.

Farm to Pharma

MMJ is positioning itself as a ‘farm to pharma’ player in the medical pharmaceutical industry, aiming to have a presence in the growth, extraction, and manufacture of cannabidoil and tetrahydrocannabinol from cannabis plants.

Its Duncan facility in Canada comes under its United Greeneries offshoot, and is the ‘farm’ portion of the strategy.

Today it told investors that the Canadian government had completed a vita pre-inspection upgrade of the facility, and was now just awaiting the final check from the government.

When operational, the Duncan facility is slated to produce 700kg of medical cannabis.

It also has a second project in the works in Canada, which could bring production up to 12,000kg per year.

United Greeneries is fully integrated with a state-of-the-art biochemical quality testing and analytics laboratory at its disposal.

This is vital, as while it’s a requirement under Canadian law, not a lot of growers have this up their sleeve.

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