Mark Lucas, chief executive of Cannasouth, says the first shipment of cannabis-based active pharmaceutical ingredients to Australia is a major milestone for the company. Photo / Alan Gibson
Mark Lucas, chief executive of Cannasouth, says the first shipment of cannabis-based active pharmaceutical ingredients to Australia is a major milestone for the company. Photo / Alan Gibson
A South Waikato medicinal cannabis company has reached another high point, becoming the first in the country to export cannabis-based active pharmaceutical ingredients (APIs) to Australia.
Cannasouth sent its first API shipment to Australian pharmaceutical company Novachem two weeks ago.
The distribution agreement with Novachem allows for the distribution ofCannasouth’s active ingredient cannabinoids and finished products to Australian manufacturers, pharmacies and patients.
Cannasouth chief executive Mark Lucas said APIs differed from previous flower exports.
“Exported flower serves as a starting material that requires additional processing steps abroad. To be used in oral dosage forms like oils, the cannabinoids in the flower must be extracted and purified. In contrast, a GMP-certified [good management practice] API can be immediately used as a key ingredient in medicinal cannabis products.
“Following our first commercial export of cannabis flower to Australia in June, we’re now making significant strides in the Australian medicinal cannabis market by expanding our product offering with the supply of high purity, verified pharmaceutical CBD ingredients.”
Lucas said the latest shipment was a “milestone”.
“It signifies the turning point from our capability phase to manufacturing and selling products. It’s an exciting change. Exporting to Australia is also a milestone. It’s a significant market that has grown quite fast. Now that we’re in that market, we can build demand and sales in Australia.”
In June, Cannasouth merged with Katikati-based medicinal cannabis company Eqalis.
At the time, Lucas said the merger would create a more resilient business, diversified income streams, higher margins and access to a larger capital pool to help the company compete globally.
“Both Cannasouth and Eqalis share the same values when it comes to delivering positive health outcomes to patients. Through collaboration, we can speed up the advancement of technology to bring medicines to market faster.”
Inside Cannasouth's greenhouse at its Waikato base, where it also has R&D and manufacturing facilities. The firm had its first commercial harvest in June. Photo / File
Eqalis chief executive Greg Misson said the partnership would ultimately lead to better health outcomes for patients across Aotearoa through innovation and world-leading technologies.
Novachem manager of cannabis products Andrew Heath said the company was excited to introduce Eqalis’ API products to Australian pharmacies and patients.
“Eqalis’ commitment to quality and GMP aligns with New Zealand’s stringent quality guidelines, paving the way for significant market opportunities not just in Australia but globally.”
