Health: Althea scores first UK customer, eyes off local processing facility
Health & Biotech
Health & Biotech
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Shares in medicinal cannabis company Althea (ASX: AGH) found some demand this morning after a promising development in the UK market.
For the first time, a UK patient has been prescribed Althea products by a doctor from within the company’s network of UK medical professionals.
Althea shares rose almost eight per cent to 91.5 cents, and are up from 26 cents at the start of the year.
The development marks a milestone for Althea’s UK distribution strategy, which it first announced in February when it established a UK subsidiary and set about building a distribution network.
After waiting for clearance from UK regulators to approve imports for medicinal cannabis, the company now hopes to replicate the success of its Australian growth where it’s sold over 1,000 products.
“The company expects to receive more patient prescriptions in the coming days and will export Althea products from Australia, in order to satisfy demand,” Althea said.
Speaking of Australia, Althea passed another milestone in the form of a planning permit for the company’s proposed manufacturing facility in Skye, Victoria.
Althea says it wants to export home-grown products from Australia by next year, in addition to its existing supplier networks in Canada.
On that front, it hasn’t been getting a lot of help from the Victorian government and Frankston City Council, as the facility proposal faced multiple planning delays.
The council said an amended proposal was initially due on June 24, which means today’s approval was handed down earlier than the initial timeline.
“Operating within such a highly regulated industry requires constant interaction with all levels of government and this permit represents the success of industry working with government,” Althea CEO Josh Fegan said.
The proposed cultivation facility has received approval from the Office of Drug Control (ODC).
Althea isn’t the only company to announce some promising news on distribution. Bod Australia Limited (ASX: BDA) announced it has secured an agreement with Burleigh Heads Cannabis to distribute its medicinal cannabis product, MediCabilis.
As part of the deal, Bod “will gain access to BHC’s wholesale network and partner company Cannabis Doctors Australia”, which provides education and distribution services to the Australian medical industry.
European-based MGC Pharmaceuticals Ltd (ASX: MXC) also announced it has signed a deal with a German-based company to distribute its phytocannabinoid products in Germany, Austria and Switzerland. Shares in MGC were up more than five per cent at 5.5 cents.
And Roots Technologies (ASX: ROO) rocketed higher by almost 30 per cent after the company announced another sale of its Root Zone Temperature Optimisation (RZTO) cooling and heating technology, this time to an organic farm in California. It marks the fourth sale of the company’s RZTO in the North American market.