Cannabis sativa seedlings at the trial plot run by the Eastern Institute of Technology at its Ruatoria campus. Photo / Alan Gibson
Cannabis sativa seedlings at the trial plot run by the Eastern Institute of Technology at its Ruatoria campus. Photo / Alan Gibson
If you can launch rockets from the Mahia Peninsula then you can build a medicinal cannabis manufacturing plant in Taupō.
Setek Therapeutics chief executive David Pearce says earthworks have begun at their Taupō manufacturing site for a 3000sq m high-tech lab following a recent agreement with drug company AFT Pharmaceuticals.
Currently employing five people, the new Taupō facility will be multi-functional, manufacturing medicinal cannabis products, and in the near future housing pharmacists and bio geneticists involved in the research, development, and commercialisation of medicinal cannabis products.
The agreement will see Setek Therapeutics provide pharmaceutical-grade medicinal cannabis medicines to AFT Pharmaceuticals who have distribution and licensing agreements in place in Australia and world wide.
AFT managing director Hartley Atkinson said they are delighted to advance their existing working relationship with Setek to bring medicinal cannabis products to market.
"Setek's international relationships and understanding of medicinal cannabis markets both in New Zealand and offshore make it an ideal partner for AFT," said Atkinson.
Setek's plant will be production ready by the third quarter of 2021, and Pearce says they will have the capacity to manufacture all types of medicinal product.
Setek Therapeutics CEO David Pearce says they have begun work on their Taupo manufacturing plant for medicinal cannabis. Photo / Rachel Canning
"We could even manufacture a manuka honey product. We aim to bring natural Aotearoa to the world."
The Medical Cannabis Agency is yet to register a New Zealand-based product for manufacturing. Covid-19 pushed the start date out by six months, with the first applications expected to be accepted and approved in 2021. Pearce says they will be ready on day one.
"At the moment there are only two cannabidiol (CBD) products available through doctor's prescription in New Zealand, and they can be very expensive."
Medicinal cannabis Tilray.
Prescribed mainly for pain, anxiety and depression, medicinal cannabidiol brands Sativex and Tilray can cost up to $1500 per month.
Pearce says Covid-19 has fuelled a worldwide desire for nutraceuticals so people can boost their immune system.
"In Europe, medicinal cannabis can be sold as a 'novel food', with lollies coated in cannabidiol. Because medicinal cannabis has been classified as a 'pharmaceutical' in New Zealand it must be delivered in a pure form and this means lozenges are not allowed.
"The Australians are aiming to make medicinal cannabis more accessible by selling a low dose cannabidiol over the counter, but this is a big ask for legislators."
Referendum failure to get recreational cannabis legalised in New Zealand was another blow, says Pearce.
Green Party MP Chloe Swarbrick reacts to the outcome of the cannabis referendum. Photo / Dean Purcell
"Lots of people in the industry were upset about the referendum result as they thought it would open up the availability of medicinal cannabis products."
Pearce says backyard growers are 'absolutely competitors' to medicinal cannabis corporates because licensing costs are so high.
"If the recreational vote had passed then they would have had the opportunity to participate in the market."
He is full of admiration for the scientific skill of the home bakers, known as green fairies, who have worked out how to extract (Frankensteining) medicinal cannabidiol (CBD) from cannabis sativa.
"The green fairies understand the science. Their customers get the health benefits without getting stoned."
Pearce says there is a big division between the green fairies and the corporates.
Investing heavily in technology, Setek Therapeutics design engineer Shaun Funnell with indoor lights to replicate sunshine. Photo / Rachel Canning
"Under the medical cannabis scheme Good Manufacturing Practice (GMP) certification is required so there is no more than two percent variation between batches.
"So you know what you are getting when you are prescribed medicine from your GP," said Pearce.
Attending New Zealand's first ever medical cannabis conference in early November, Pearce was surprised by the proportion of growers attending. As a manufacturer, he is convinced the money in medicinal cannabis is in the intellectual property and in the delivery mechanism and form factors.
"Once you have those two things clinically validated, that's where the margins are."
Whether medicinal cannabis is inhaled, delivered through a patch under the tongue, swallowed as a capsule or sprayed into the mouth, Pearce says the delivery method will win the day and is staying mum about Setek's research into this area.
"There is currently a worldwide glut of cannabis on the market. Uruguay is selling cannabis flower buds for just US$2 per gram. There's no money in that ... it's a boom bust market."
He says research into the medical benefits of cannabis is in its infancy and there are indications cannabis could have benefits for many health issues.
"There are 60 plus cannabinoids and the properties of just four are understood.
"Just imagine what the world will find when trials begin on any one of the other cannabidiols."
