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Cannasouth to Begin Delivering API to Australia
In an industry first for Aotearoa New Zealand, Cannasouth Limited (NZX:CBD) has exported its inaugural commercial shipment of cannabis-based active pharmaceutical ingredients (API) to Australia.
Cannasouth CEO Mark Lucas stated that this initial shipment marks a significant milestone for the domestic industry, highlighting the international demand for high-quality, PIC/s Good Manufacturing Practice (GMP)-certified pharmaceutical ingredients. “We believe this is the first export of its kind from Aotearoa: a high-purity, cannabis-based API, manufactured in New Zealand to GMP standards and verified by the Medicinal Cannabis Agency. This sets the stage for the next phase of growth for Cannasouth and the industry.”
“Following our first commercial export of cannabis flower to Australia in June, we’re now making significant strides in the Australian medicinal cannabis market by expanding our product offering with the supply of high purity, verified pharmaceutical CBD ingredients,” Lucas added.
“Our New Zealand-manufactured API differs from flower exports. Currently, exported flower serves as a starting material that requires additional processing steps abroad. To be used in oral dosage forms like oils, the cannabinoids in the flower must be extracted and purified.
“In contrast, a GMP-certified API can be immediately used as a key ingredient in medicinal cannabis products.”
“The upcoming improvements in the medicinal cannabis scheme, expected by the end of 2023, will further enable us to export at scale and expedite our mission to provide high-quality, affordable medicinal cannabis products to New Zealand patients. This is timely, given that both of our manufacturing facilities have now achieved GMP status.”
The distribution agreement with Australian pharmaceutical company Novachem Pty Ltd allows for the distribution of Cannasouth’s API and finished products to Australian manufacturers, pharmacies, and patients.
Andrew Heath, Novachem’s Manager of Cannabis Products, commented, “We’re excited to introduce Eqalis’ products to Australian pharmacies and patients. Eqalis’ commitment to quality and GMP aligns with New Zealand’s stringent quality guidelines, paving the way for significant market opportunities not just in Australia, but globally.”
On June 1, 2023, Cannasouth merged with Eqalis Group, enabling end-to-end operations with GMP approval for producing dried cannabis flower and manufacturing cannabis-based ingredients and medicinal cannabis products, including oral solutions.