The supply of medical cannabis is not meeting global demand, but a company called Canngea is trying to find a solution. The global cannabis market is expected to explode, particularly in Europe.
The rapidly liberalizing European market is predicted to be worth $27.3 billion by 2025. However, significant supply shortages threaten to strangle the growth of the medical cannabis sector.
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Canngea plans to alleviate medical cannabis supply chain problems
A company is aiming to interrupt the shortage of cannabis medicines. The Australian startup, Canngea, is trying to solve the problem by installing Australia’s largest in-house pharmaceutical-grade facility to grow and manufacture high-quality medical cannabis products.
As more countries begin to legalize medical cannabis, there is growing demand around the world. Many countries that allow the use of medicine do not allow its cultivation, which means that they need to import from countries that grow cannabis.
Canngea: a solution to cannabis shortages
Licensed B2B operator, Canngea, will serve companies in the medical cannabis sector that wish to develop products to sell to domestic and international consumers. Canngea’s commercial director, Martin Bryden, said that the new facility would help solve the problem of inconsistent and poor quality cannabis products on the market.
He said that Canngea is Australia’s only medical cannabis contract manufacturing organization, using proven in-house cultivation technology to produce consistent, high-quality products at a competitive price. “Our in-house pharmaceutical-grade cultivation and manufacturing environment reduces risk, increases crop yields and ensures product quality and consistency,” added Martin Bryden.
The innovative facility will be equipped to provide a complete solution for customers: from growing, harvesting, extracting, packaging and labeling to distributing the customer’s branded products, with industry-leading technology.
The world-class, GMP-certified facility will be established in the Hunter Valley region of New South Wales. It will also house an on-site analytical laboratory capable of extraction, tissue culture and formulation of cannabis products, as well as compatible automated packaging, labeling, logistics, and distribution.
Eco-friendly solutions for high costs
Canngea aimed to significantly reduce production costs and maximize shareholder return from the use of solar power and battery. “Environmental sustainability is at the heart of our fully integrated 11,000 square meter facility. The project includes a strong focus on renewable energy and minimizes water use,” said Bryden.
“Canngea’s solar-powered battery solution is 10% the size of Tesla Big Battery, making it the largest privately-owned commercial battery in New South Wales, ” he added.
Major global suppliers
Australia legalized medical cannabis in 2016 and in January this year, Health Minister Greg Hunt said he wanted the country to become the world’s leading supplier. The Australian medical cannabis market is expected to be worth $5.5 billion by 2025, while the global market will total $66.3 billion.
Faced with a shortage of cannabis drugs, Bryden said Canngea was well-positioned to increase its market share and conquer the global market as well as domestic consumers, thanks to Australia’s strict standards.
“Australia is the only jurisdiction that treats medical cannabis as a purely pharmaceutical product, unlike other countries where cannabis can also be treated as a ‘natural’ or herbal product or supplement,” he added.
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