Australian cannabis company Little Green Pharma (ASX: LGP) has reached a major commercial achievement in their long-term strategy having been granted a manufacturing licence for cannabis products at their newly commissioned facility in Western Australia.
“The grant represents the culmination of LGP’s long-term regulatory strategy and is a clear watershed moment for the Company. The grant of this GMP licence differentiates the Company as the only fully TGA and ODC licensed and permitted medicinal cannabis company listed on the ASX with local Australian cultivation, manufacturing and wholesaling capacity, as well as brands in market.” said Little Green Pharma Managing Director, Fleta Solomon.
“This end-to-end capability allows us to more effectively manage costs, focus on higher-margin aspects of the supply chain, and supply LGP-branded GMP-grade medicinal cannabis products into the highly regulated markets of the European Union”
With their licensing and new regulatory access to domestic and European markets, Little Green Pharma has flagged intentions to target the high-margin market in Germany where there are only a handful of international manufacturers that are approved to supply medicinal cannabis products. This can be achieved through more than 20 State and Federal operating authorisations which enables Little Green Pharma to operate a fully in-house cannabis cultivation, production, manufacturing, and wholesaling supply chain.
The German market, which is the world’s third largest for cannabis products, is entirely reliant on imported products while South America has also been flagged as a target market.
Little Green Pharma has been generating revenue from their cannabis oils and medicinal products since 2018 but has been reliant on external manufacturers to date.
For the Quarter ending 30 June 2020, Little Green Pharma reported $875k sales revenue which included 1,390 new patient prescriptions for their products.
LGP shares responded well to the new regulatory approval, opening at $0.305, a rise of 5.17% on their previous $0.29 close.
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