The federal government decision is aimed at boosting the domestic cannabis industry.
Auscann Group Holdings Ltd’s () shares are trading circa 37% higher intra-day at $1.13 following the federal government’s decision to allow manufactured cannabinoid medicines to be exported from Australia.
Elaine Darby, managing director, said: “This is a win for the Australian cannabis industry and Australian patients as it allows us to produce cost effective products at scale.
“We are perfectly positioned to create high value export products from AusCann and have the international relationships in place including Canopy, the largest producer in North America and also our largest shareholder in AusCann.
“AusCann remains committed to Australian patients as a priority and has developed the medical outreach program that is already educating doctors and health practitioners in Australia on the use of cannabinoid medicines.”
Uniquely positioned with the full set of cannabinoid medicines licences
The new decision puts AusCann in a valuable position as the only company with the full set of the necessary licences to grow and manufacture cannabinoid medicines in Australia.
AusCann has the only established TGA (Therapeutic Goods Administration) licensed manufacturing facility through their partnership with Tasmanian Alkaloids.
READ: AusCann Group Holdings advances medical cannabis supply chain strategy
The company’s Chilean joint venture DayaCann is planting its second medicinal cannabis crop in Chile.
This follows the grant of a cultivation licence for the crop in November by Chilean authorities.
Up to 435 plants are being planted at DayaCann’s 30-hectare facility south of Santiago.
The crop is expected to be harvested in the first half of 2018 and will provide a range of cannabis strains to be extracted.
Australia is aiming to become the world's top medicinal cannabis supplier
The federal government has approved the exportation of medicinal cannabis in a bid to strengthen the supply amid growing demand domestically and worldwide.
Importantly, the decision to allow exports is expected to lead to further investment in the Australian industry and provide local companies with an incentive to accelerate their development plans.
Health Minister Greg Hunt said allowing medicinal cannabis product exports will help the developing domestic market to grow.
He hopes Australia can be the world's top supplier of medicinal cannabis.
