Perth-based medical cannabis company Little Green Pharma (ASX: LGP) will be entering Poland’s medical cannabis market through a new exclusive distribution deal with a major Polish supplier.
Earlier this week, Little Green Pharma announced that they signed a deal with Medezin. Medezin is a subsidiary of Pelion SA – the largest operator in the Lithuanian and Polish healthcare sectors. Annually, Pelion SA brings in over $AU3.5 billion in revenue.
The new distribution deal will see Medezin selling and distributing Little Green Pharma products throughout Poland. Poland first legalised medical cannabis in 2017 and Polish people can currently access cannabis medications with a prescription from their doctors. Unlike Australia, Poland’s medical cannabis laws do not set specifying conditions on cannabis prescriptions.
As Poland is the fifth largest country in Europe, the distribution deal is a strategic move for Little Green Pharma. As per the distribution agreement, Medezin will exclusively sell Little Green Pharma products for five years – provided it meets two conditions. This includes capturing at least 20% of the cannabis oil market and at least 10% of the high-THC cannabis flower market. At this time, Little Green Pharma has not set Polish prices for their medications, but medical cannabis flower products generally retail for $226 – $244 for 10 grams.
Little Green Pharma products are expected to reach patients in either later 2021 or 2022. However, the products must be granted a Marketing Authorisation from Polish officials first. The companies expect to submit the paperwork to start this process in mid-June, though the full authorisation process usually requires 210 days.
The two companies will also sign a Good Manufacturing Practice (GMP) agreement before the first shipment.
According to Little Green Pharma’s Managing Director Fleta Solomon, the distribution agreement will help the company acquire a “substantial share” of the markets they supply medical cannabis in.
We are very pleased to have partnered with Medezin, a highly experienced and large-scale pharmaceutical distributor serving the Polish market, to help us achieve this goal.
It seems shareholders are pleased, too. After Little Green Pharma announced their distribution deal, shares in the company climbed to a several-day high of $0.66. Little Green Pharma’s distribution deal with Medezin makes them one of several medical cannabis companies betting on the European market.