Theres a three-letter abbreviation you are going to see a lot in this article. Its GMP and it stands for good manufacturing practice.
For Little Green Pharma Ltd (ASX:LGP), the Australian cannabis group making a mark on this side of the world, it is a key component to success.
That's because it is one of a handful of medicinal cannabis companies across the globe that has EU-GMP certification. As Fleta Solomon, the companys chief executive, points out: “It is the highest recognition available in the pharmaceutical industry.”
The accreditation means it has met and surpassed stringent criteria governing how its tetrahydrocannabinol (THC) and cannabidiol (CBD) products are created at a laboratory in Perth, Western Australia, from crops grown in an indoor facility elsewhere in the state.
Australia's first cannabis export to UK
It has allowed Little Green Pharma to make Australias first export to the UK, after a recent change to legislation here, which will provide relief for sufferers of conditions for whom only highly-refined derivatives of the plant will work.
The GMP licence also allows the company to target the German market, which is the most developed on the continent. That prospect is "not far off", according to CEO Solomon.
After that, she and her tight-knit team will focus on “another couple of EU countries”, while South America is also “on the horizon”.
“The highlight for Little Green Pharma is we are in a really unique position where we can grow, manufacture and distribute to certain jurisdictions where cannabis is legal for medical conditions,” says Solomon. “There is only a handful of companies in our position.”
The key to gaining European regulatory sign-off was partnering with a Perth-based manufacturer with a track record of making controlled narcotic drugs to the highest standards.
“They were able to easily adapt to medicinal cannabis,” Solomon says of its manufacturing partner. “Their qualifications and skillset were really paramount in producing the product making sure it went through rigorous testing.”
Little Green Pharma also benefits from being the first, and currently only, Australian company to produce a locally-grown cannabis medicine for patient use.
'Oven-ready' for the ASX
This, the GMP accreditation and the fact the company had carried out pilot-scale proof of concept production meant the business listed on the Australian Securities Exchange oven-ready.
Carrying out the groundwork before tapping the market was rewarded when Little Green Pharma was able to raise A$10mln in February in its initial public offering.
That cash has been immediately put to use to expand the business internationally after ramping up the operation to 110,000 bottles per year.
It has developed four core pharmaceutical-grade products: high THC (containing the cannabis psychoactive element), high CBD and two intermediate prescription medications.
The plan – pre-coronavirus at least – was that Little Green Pharma would aim to break-even by the end of the year. No mean feat, given many businesses take years to hit this landmark.
Of course, nobody knows what the world will look like when we emerge from lockdown, but Solomon is confident demand will hold up during what could be a difficult period economically.
Lockdown makes life difficult to predict
The mainstream drug industry tends to be as close as a recession-proof as it gets – so there may be a hiRead More – Source
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