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MediPharm Labs signs second New Zealand supply agreement in two weeks

Cannabis
TSX:LABS
04 May 2020 07:45 (EDT)

MediPharm Labs’ (TSX:LABS) subsidiary, MediPharm Labs Australia, has signed a supply agreement with Cannasouth Plant Research New Zealand.

Founded in 2015, MediPharm specialises in the production of purified, pharmaceutical-quality cannabis oil and concentrates.

Under the two-year deal, MediPharm will supply Cannasouth Plant Research – a subsidiary of Cannasouth Limited – with a range of white-label, GMP-certified oil products.

Cannasouth will also act as the exclusive New Zealand purchaser of certain formulations and dosages forms, which will be supplied with the company’s own branding.

The agreement comes after the implementation of New Zealand’s Medicinal Cannabis Scheme by the Ministry of Health, which came into effect at the beginning of April this year.

Warren Everitt, CEO of MediPharm Labs Australia, said the country is starting to see an increase in demand from patients, which the company is ready to address.

“We are thrilled to beworking with Cannasouth to bring new formulations and products to the New Zealand market.

“MediPharm Labs is well equipped with our expertise, pharma-focused team of scientists, and GMP platform to meet the new quality standards set out by New Zealand’s regulators requiring all medicinal cannabis products be manufactured under GMP,” he added.

As yet, the agreement is subject to approval from both the New Zealand Medicines and Medical Devices Safety Authority and Cannasouth that the products meet specified quality and regulatory requirements. Cannasouth is also looking to confirm its necessary insurance requirements.

The deal comes hot on the heels of an earlier New Zealand white-label agreement with Helium Therapeutics, dated April 24, which also relates to the supply of pharmaceutical-grade cannabis oils.

“After an exhaustive effort researching white label suppliers around the globe who were able to meetNew Zealand’s quality standards, we were impressed with MediPharm Labs’ product range and quality standards,” said Mark Lucas, CEO of Cannasouth.

“Patients are desperately waiting for new cannabis-based medicines to become available under New Zealand’s Medicinal Cannabis Scheme and this is the first step in that process,” he concluded.

MediPharm Labs (LABS) is currently down 1.1 per cent to C$1.80 per share at 9:45am EDT.

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