Pot stocks look to launch new products following yesterday’s TGA ruling
Health & Biotech
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ASX cannabis stocks are continuing their victory lap following yesterday’s decision by the TGA to re-classify low-dose cannabidiol (CBD) products.
The TGA has made an interim decision to down schedule CBD products, including oil and pills, to schedule 3. Currently such products are at Stage 4 meaning they can only be issued as prescription medicine.
But if the TGA’s decision becomes final, patients could obtain CBD products directly from pharmacists, without a prescription.
As at 10.30am this morning nearly half of ASX cannabis stocks had notched up gains.
Some stocks indicated this ruling may open the door to new products.
West Australian cannabis grower Little Green Pharma (ASX:LGP). told shareholders it is considering pursuing registration of an eligible CBD product – including a 30ml formulation of its LGP CBD50 medicinal cannabis oil.
While this would be subject to the TGA’s final decision and implementation, the company’s managing director Fleta Solomon said the ruling was significant despite only being interim.
“The down-scheduling demonstrates the TGA’s commitment to patient safety and product quality, while acknowledging the continuing shift in public, medical and government perception towards CBD and medicinal cannabis as a treatment option,” she said.
Bod Australia (ASX:BDA) is already in the product space but said it was examining the requirements and was exploring opportunities to launch new CBD products.
Bod CEO Jo Patterson said she was confident any such products could be bought to market in 12 months and anticipated significant consumer demand.
Bod shares declined after climbing 20 per cent yesterday, while Little Green Pharma shares gained over 15 per cent.
Other stocks were less specific about their future plans but hinted they too could have new opportunities.
Pharmaceutical company AusCann (ASX:AC8) said the ruling was a major change and the company would continue to work with the regulator as it moved to a final decision and made it effective.
Creso Pharma (ASX:CPH) reiterated FreshLeaf Analytics’ estimate that the ruling would unlock a market opportunity worth over $200 million and it intended to capitalise.
“The down scheduling of CBD products in Australia is an exciting development and provides Creso Pharma with a number of key near term opportunities,” said non-executive director Miri Halperin.
“We anticipate that the Australian market will play an important role in the company’s growth trajectory and will grow significantly as CBD becomes more accepted and entrenched with consumers.”
Creso and AusCann both saw gains this morning.