- The Australian cannabis market has remained unscathed by the COVID-19 pandemic and is expected to grow in the future by combined efforts of cannabis agencies.
- The Senate also passed the Export Control Legislation Amendment Bill which will remove the regulatory barriers enforced on Australian exports, thus aiding medicinal cannabis exports.
- Althea Group’s MyAccess Clinics has signed an MOU with Drug Science, an independent scientific committee.
- Under this agreement, Drug Science may refer patients to Althea’s MyAccess Clinics for evaluation by its prescribers.
- Mernova Medicinal, a Canadian subsidiary of Creso Pharma, ramped up production of cannabis, ahead of product launch.
Cannabis has become the most popular medical and recreational drug that produces two bioactive substances, namely Cannabidiol (CBD) and Tetrahydrocannabinol (THC), both sought by medical as well as recreational users. Cannabis, for medical purpose, is often prescribed for treatment of chemotherapy-induced nausea & vomiting, muscle spasms, Crohn’s disease, multiple sclerosis, and seizures.
The Australian government stated that over the past few years, several Australians had shown interest in the application of cannabis for medicinal use. As there have only been a restricted number of well-designed clinical trials on medicinal cannabis, it becomes difficult for some physicians to find quality proof to back the decision of prescribing medicinal cannabis.
The Commonwealth of Australia, in conjunction with the state as well as territory governments, has assisted in developing a new document for clinical guidance for medicinal cannabis product prescribers to treat nausea and vomiting induced during chemotherapy, multiple sclerosis, epilepsy, chronic non-cancer pain.
Despite the ongoing COVID-19 pandemic, cannabis stocks have remained mostly unaffected as Medicinal Cannabis Industry Australia (MCIA) declared medicinal cannabis as essential service.
Last week, on 17 June, the Senate approved the Export Control Legislation Amendment Bill which will help get rid of the excessive regulatory barriers on exports. The move is likely to aid the growth of medicinal cannabis exports.
Also, on 20 May 2020, MCIA and Medical Cannabis Council (MCC) revealed that both have entered in a partnership for creating an integrated voice for the medicinal cannabis industry in Australia.
Hence, it is anticipated that the cannabis market in Australia will offer lucrative opportunities in the upcoming period with the collaborative efforts of cannabis agencies and the government support in boosting cannabis exports.
With this backdrop, we will discuss the latest updates of two ASX-listed cannabis stocks– AGH and CPH
Althea’s MyAccess Clinics Signs Agreement with Drug Science for Project Twenty21
ASX-listed global pharmaceutical player Althea Group Holdings Limited (ASX:AGH) is engaged in supplying pharmaceutical-grade medicinal cannabis products for the treatment of debilitating conditions. Currently, the Company is operating within highly regulated medicinal cannabis markets, including Australia, Germany, and the UK. Besides, Althea intends to further expand into emerging markets of Europe and Asia.
MyAccess Clinics’ MOU with Drug Science
On 24 June 2020, Althea disclosed that its wholly-owned subsidiary, MyAccess Clinics has made significant progress in the United Kingdom and secured a new patient referral agreement and further CQC approvals for additional clinic locations.
MyAccess Clinics has signed an MOU (Memorandum of Understanding) with an independent scientific group Drug Science that is engaged in conducting the first national pilot for medical cannabis in the United Kingdom.
Under this agreement, Drug Science may refer patients to MyAccess Clinics for evaluation by its prescribers for inclusion as well as treatment in Project Twenty21. The pilot intends to enrol nearly 20k patients before the end of 2021.
New clinic locations approved, Althea shows robust growth
Besides, Althea observed a substantial increase across key metrics of MyAccess Clinics, despite the concerns triggered by the COVID-19 induced lockdowns. Moreover, Althea has received consent for five new clinics, with these newly approved clinics the Company has a total of seven clinics now.
The Company disclosed that in the last two months, MyAccess Clinics got almost twice the number of web-based requests, escalating to 673 from 339. There was a substantial upsurge in month-on-month patient discussions that were up by 50% during the same time.
Moreover, Prescriptions witnessed a conversion rate of 94% from completed patient consultation to prescription if cannabis for medical purposes.
Althea also notified that in response to COVID-19 pandemic, MyAccess Clinics fast-tracked the rollout of telehealth services, allowing prescribers for video consultations with patients anywhere in the United Kingdom.
Mr Josh Fegan, CEO Althea commented:
AGH stock was trading at A$0.340 on 25 June 2020 (at 1:39 PM AEST), a decline of 2.857% compared to the previous close. The market cap of AGH stands at nearly A$81.66 million with ~233.31 million shares trading on the ASX. Althea has delivered an excellent return of 100.00% in the last three months.
ALSO READ: Unaffected by COVID-19, these cannabis stocks continue their clinical studies
Creso Pharma’s Canadian Subsidiary Ramps Up Cannabis Production Ahead of Product Launch
ASX-listed cannabis player Creso Pharma Limited (ASX:CPH) is engaged in providing medicinal cannabis products to people as well as animals across the world. Creso Pharma set out to leverage advanced science and research for developing and commercializing novel hemp and cannabis-derived medical formulations.
By acquisition of a Medical Cannabis growing company Mernova Medicinal, Creso Pharma has entered in the Canadian medicinal cannabis market.
On 24 June 2020, Creso Pharma disclosed that its Canadian subsidiary, Mernova is currently scaling up cannabis production towards the maximum capacity to meet the growing demand from medical and recreational markets in Canada.
Mernova Medicinal Inc is well-positioned to turn into a leading premium product manufacturer via its proprietary cultivation methods and artisanal method to grow cannabis.
Operational improvements at Mernova’s production facility have improved quality of cannabis and further enhancements to both yield as well as quality anticipated in forthcoming months.
Recently, Mernova has implemented many key proprietary processes intended at improving its developments in cannabis manufacturing as well as processing facility ahead of its awaiting premium retail launch.
Already, Mernova has reported that these optimization modifications have streamlined cannabis production and delivered substantial advancements to quality of cannabis products, with boosted yields shortly to observed.
Moreover, Creso Pharma disclosed that the Company is in initial conversations with various parties across North America related to the sale of its cannabis 2.0 products along with dried flower and will inform its stockholders once material binding agreements are entered.
CPH stock was trading at A$0.037 on 25 June 2020 (at 1:39 PM AEST), a decline of 9.756% compared to the previous close. The market cap of CPH stands at nearly A$13.41 million with ~327.06 million shares trading on the ASX.
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