Creso Pharma welcomes OTC sales of CBD products in Australia as it prepares to move into Australian market through Martin & Pleasance agreement
Creso Pharma Ltd (ASX:CPH) (FRA:1X8) (OTCMKTS:COPHF) has welcomed the introduction of over-the-counter sales of low-dose cannabidiol (CBD) products in Australian pharmacies from 1 February 2021. The company is well-positioned to capitalise this growing market opportunity, through its strategic heads of agreement with leading natural, sustainable health and lifestyle brand supplier Martin & Pleasance Pty Ltd, which has access to over 4,000 pharmacies across Australia. The move by the Therapeutic Goods Administration (TGA) to down-schedule low-dose CBD preparations from Schedule 4 (Prescription Medicine) to Schedule 3 (Pharmacist Only Medicine) unlocks a market estimated to exceed $200 million per annum. Another revenue stream Creso Pharma non-executive chairman Adam Blumenthal said: “Today is a major milestone for the Australian medicinal cannabis industry, which we anticipate will grow rapidly over the coming months. “The TGA’s decision to allow the sale of low–dose CBD products to consumers without a prescription provides Creso Pharma with another exciting opportunity to grow in Australia and another potential revenue stream for the company. “We will continue to work with Martin & Pleasance to define the specific regulatory pathway for our product in the Australian market and look forward to proving its superiority through the ARTG registration process. “Creso continues to progress a number of growth initiatives in Australia and internationally and looks forward to updating shareholders as developments materialise.” Martin & Pleasance deal Martin & Pleasance has its own in-house regulatory team and an extensive workforce directly servicing over 4,000 pharmacies in Australia and New Zealand, as well as online channels, grocery and practitioner suppliers. Creso’s collaboration with Martin & Pleasance is progressing very well. Both parties are currently sharing information to progress potential regulatory pathways for low-dose CBD products and defining business cases, which will allow Creso to considerably grow its footprint with Australian pharmacies. Australian market The TGA decision has led to CBD products containing up to a maximum of 150mg/day, for use in adults that have been approved by the TGA, to be sold by a pharmacist to customers without a prescription. Products must be approved by the TGA and included on the Australian Register of Therapeutic Goods (ARTG). The company has an existing portfolio of CBD products being actively sold in several countries globally, with its flagship CannaQIX® 50 product already available in Australia via prescription, under the LozaCan brand. Global trend TGA regulatory approval is demonstrative of a growing global trend towards relaxation of legislation, making Creso products much more easily accessible to patients. Creso Pharma is also pre-empting further relaxations of cannabis regulations in other jurisdictions globally, including the US, and is advancing discussions with potential distribution and channel partners to position itself as a first-mover in the US and other markets, at the appropriate time.