MediPharm Labs (LABS.T) has just completed its first shipment of premium, formulated cannabis oil to its customer Cann Farm Peru SAC, a Lima-based producer and distributor serving Peruvian and other Latin American markets.
“This first import into Peru demonstrates the versatility of our GMP-certified platform that qualifies Medipharm Labs to export high-THC and -CBD formulated oils into international medical markets where cannabis is regulated like other pharmaceutical products…We look forward to expanding our presence in Peru and other Latin American markets like Brazil where we have agreements in place and are awaiting final permits to import our pharmaceutical quality products to patients and physicians looking for products they can trust,” said Keith Strachan, president and interim chief executive officer, Medipharm Labs.
MediPharm’s GMP-certification is no surprise at this point. It has been an incredible asset for MediPharm, recently assisting the Company in gaining a foothold in Europe’s highly profitable medical cannabis market. With this in mind, MediPharm continues to expand its presence globally with its recent shipment of cannabis oil to Cann Farm. This marks the first shipment of oils to Cann Farm since the supply agreement was established in September, 2020. The first shipment of oils was planned for Q4 of 2020, however, MediPharm likely faced delays due to pending regulatory approvals.
Latin America is a priority for MediPharm’s international growth strategy, with a combined population of 646,430,840 as of 2019 according to The World Bank. In particular, Peru was one of the first Latin American countries to begin pushing for a legal framework for producing, importing and selling medical cannabis. In October, 2017, Peru adopted Law 30681 which allows for the domestic production, importation and commercialization of cannabis for medical and scientific purposes. As such, Peru’s medical cannabis market is highly dependent on imports, making supply agreements a hot commodity for companies like MediPharm who have their GMP certification.
“Since Peru’s initial cannabis legalization, patients have predominantly had accessed to CBD in the absence of a steady supply of legal THC. This initial shipment will provide Peru’s growing patient base with access to formulated THC medicines that have a high degree of quality and control. Bringing high-quality THC into the country will also open many doors in the health care sector…Providing a consistent supply of high-quality THC will allow physicians to prescribe cannabis oils to address a wider range of therapeutic needs, versus mainly CBD-dominant oils, including pain management,” says Andres Vazquez, president of Cann Farm.
MediPharm’s latest moves have been significant and certainly deserve some attention. The Company recently completed its first shipments to STADA, one of the largest European pharmaceuticals companies in Germany. The Company is steadily expanding its list of international clients through the establishment of various supply agreements. Additionally, according to MediPharm’s latest fourth quarter results, the Company saw its revenue increase 22 percent to $6.1 million compared to $4.9 million in Q3 2020. With this in mind, MediPharm has built a foundation to support its international growth, however, the Company will be competing against other GMP certified cannabis companies like Khiron.
MediPharm’s stock price opened at $0.48 today. The Company’s stock price has returned to its previous close price of $0.475.