FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Coverage on “MediPharm Labs Signs $35 Million Private Label Cannabis Oil Sale Agreement with Option for Additional $13.5 Million”.
MediPharm Labs Corp. (OTCQB: MLCPF) (TSX-V: LABS) has entered into a significant sales agreement with a leading Licensed Producer to supply approximately $35 million of private label purified cannabis oil concentrates. Under the terms of the agreement, the Licensed Producer will immediately purchase upfront $7.66 million of cannabis oil concentrate from MediPharm Labs’ inventory in February 2019.
Founded in 2015, MediPharm Labs is a pioneer in the cannabis industry and has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the Access to Cannabis for Medical Purposes Regulations (ACMPR) without first receiving a cannabis cultivation license.
The opioid epidemic has become a growing concern among many countries worldwide as opioids are commonly used to treat medical conditions such as chronic pain or cancer. However, research has shown that cannabis is linked to successful treatment of the same conditions that opioids are currently used for. Now, many countries worldwide are exploring opportunities in the cannabis market, in an effort to replace opioids with cannabis. According to data compiled by Energias Market Research, the global medical cannabis market is projected to grow from USD 8.28 Billion in 2017 to USD 28.07 Billion in 2024. Additionally, the market is expected to grow at a CAGR of 19.1% during the forecast period. Growing awareness, increasing demand and R&D initiatives will all play a part in increasing demand, helping to grow the market. As research continues, other countries may examine cannabis as a potential medical treatment alternative, potentially driving the industry even further.
Currently, chronic pain is expected to grow into one of the largest growing segments in the medical cannabis industry. In 2016, it was reported that nearly 20% of U.S. adults dealt with chronic pain, while 8% suffered from high-impact chronic pain, according to the National Center for Complementary and Integrative Health. The data also showed that many adults used opioids in order to suppress pain. Additionally, research conducted by the National Institutes of Health showed that patients diagnosed with chronic pain were also linked to opioid dependency. Now, around the world, many cannabis-based companies have seized the opportunity and entered into the medical market to provide consumers with an effective treatment that poses fewer side effects. Consumers can be seen using products such as oils, flower, and topicals in order to treat their conditions. “As legislation expands rapidly worldwide, the volume of efficacy data is growing, as are legitimate clinical trial studies,” says Liam McGreevy, Chief Executive Officer of Ethnopharm, a European cannabis company specializing in genetics and distribution, “This data will enable us to better understand the effects of the various cannabinoids and terpenes, their synergistic effect and how their impact links to the individual’s genetics or biomarkers. This data is key to understanding the most effective combinations and strengths for various conditions, moving towards targeted personalized medicines.”
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