WASHINGTON: Creso Pharma (ASX: CPH) has expanded its Australian presence, working with Western Australian-based pharmacy, Health House International, for the import and sale of cannabis products in the Australian market. CPH has established itself as a leader in cannabidiol (CBD) innovation and the group develops cannabis and hemp derived therapeutic grade CBD nutraceuticals and medical cannabis products with wide patient reach for human and animal health. This agreement potentially opens up an additional revenue stream and expands its presence in a familiar market where there is political support for the use of cannabis related products in treating medical conditions. Health House International will initially conduct a trial importation of cannabis oil products from Canadian based third-parties introduced by Creso. Following success of the trial in accordance with all Australian laws and regulations, the parties have agreed to enter into an agreement for an initial two-year term (with an option of extension), subject to Health House International purchasing and importing the agreed minimum quantities of product.
Creso will act as the facilitator for the import of the products into Australia and earn a facilitation fee on each Health House International import. Once imported, Health House International will look to distribute products to Australian patients who can buy medical cannabis under the new Australian laws via its West Australian-based pharmacy, and through the regulated national distribution chains. Health House International will also look to supply products to patients enrolled in clinical trial programs initiated by Medical Cannabis Research Australia with the likelihood of also supplying other research institutions. CPH has been quick to respond to this new market opportunity as the legalisation of medical cannabis by the Federal Government in Australia was only ratified last year.
CPH’s move follows the legislation of medical cannabis by the federal government in Australia last year and a supportive statement by the Prime Minister to initiate medical cannabis imports alongside building the local medical cannabis industry. Under the federal scheme, patients with a valid prescription can possess and use medicinal cannabis products provided the supply has been authorised under the Therapeutic Goods Act and relevant state and territory legislation. The changes put medical cannabis in the same category as restricted medicinal drugs such as morphine.
