Medicinal cannabis stocks took a dive in the aftermath of the cannabis referendum. Here’s why it happened.
In the aftermath of the cannabis referendum on October 17, stocks for the two NZX-listed medicinal cannabis companies both sold down. While the referendum concerned the recreational, not medicinal use of cannabis, medicinal cannabis companies say there may have been some confusion about the actual impact of the referendum on the medicinal market.
In September, one of those listed companies, Cannasouth, reached its all-time high on the NZX, trading shares for $1.21 each. After the election on October 17, prices declined, reaching a low of $0.54 one month later, after the cannabis referendum results were announced.
Mark Lucas, CEO of Cannasouth, says while it’s not possible to explain exactly why stocks drop when they do – it can be for a range of reasons – there is an argument that the eventual “no” vote did affect the way some investors perceived the brand’s growth potential.
“Some people may have made the assumption that a medicinal cannabis company would be in a good position if there was an adult use market. That’s not something as a company that we have articulated.”
Lucas says despite Cannasouth’s medicinal focus, there was a lot of confusion around what a “yes” vote would mean for the medicinal cannabis sector, which may have caused further confusion when the “no” vote became clear.
“[There was] a lot of confusion, a lot of people not understanding that medicinal cannabis is already legal, that there is a framework here and some people who felt that a business like ours actually depended on a ‘yes’ vote.”
The medicinal cannabis scheme, which came into effect on April 1, 2020, was put in place to improve access to quality medicinal cannabis products as medicine. Under the scheme, cannabis is only available under a prescription from a doctor and licenses need to be obtained for companies wanting to produce medicinal cannabis product – the Ministry of Health states this scheme is entirely separate from October’s cannabis referendum.
The cannabis referendum however sought to legalise recreational cannabis and allow designated dispensaries from which anyone over the age of 20 could purchase up to 14g of cannabis product per day. So why did investors get so confused?
Kristen Lunman, general manager of investment platform Hatch says it’s not uncommon that investors react to events not directly related to their investments. “It can have nothing to do with how that company, business, sector or industry is going. Share markets can be driven on emotion.”
She says in an industry like New Zealand’s medicinal cannabis market, people will be investing because of growth potential, and the referendum result would have scared some into selling shares.
“With legalisation of cannabis over the last few years all over the world, there’s the sense that ‘this is an emerging industry and I’m going to get behind it and invest in its potential’.”
Investing is an emotional game, Lunman says, which means people often follow the crowd when they see a share price plummeting, often out of panic.
“If you don’t have a really solid plan and a really solid reasoning as to why you’re backing something and a plan for that particular share then you’re going to react on emotion, and I think that’s what we saw in this case.
“People open their share portfolios and they see it’s gone into red and they panic because they’ve got into it without really thoroughly saying ‘regardless of what happens today or next year, I believe cannabis is going to grow over the next five years so I’m not going to panic.”
Lucas says the fundamentals of Cannasouth haven’t changed, and he’s not worried about the drop. The investors who have done their research won’t have reacted emotionally to the referendum result, he says.
“Medicinal cannabis is a large sector and growing rapidly globally, so anyone who was investing in a way that they had a good look at what they were investing in would understand that the fundamentals hadn’t changed for us.”
Cannasouth is only concerned with reaching goals it has set for itself, Lucas says, and share prices should rise when people can see these goals being achieved.
“The sand moves beneath your feet quite quickly in just about any sector, obviously this is a highly regulated sector and there’s a lot of interest around medicinal cannabis but fundamentally it’s the same as any other business and our focus is on trying to get the fundamentals right and building a sound business model.”
As the use of cannabidiol (CBD) and CBD oil becomes more widespread, there is increasing curiosity among consumers about its various uses, efficacy, safety and even sometimes just what exactly it is.
This article will unpack some of the answers, as well as give some insight into the various uses of CBD oil. And rest assured, CBD oil is completely legal in NZ and is available for purchase at pharmacies, with the correct prescription.
What is CBD oil?
Close up photo of CO2 extracted CBD oil
Because of its relationship to cannabis, there is a lot of misunderstanding surrounding CBD oil. Although CBD is derived from the cannabis plant, it doesn’t result in the ‘high’ that taking cannabis does. The ‘high’ is the result of another cannabinoid, tetrahydrocannabinol (THC).
According to the World Health Organisation, CBD has little potential for dependence or abuse. In effect, CBD provides many of the benefits of the cannabis plant without the risks. CBD oil has been used effectively for a wide range of illnesses, so let’s take a look at some of the common conditions that it can be used to treat and what the evidence is for its efficacy. If you’re thinking of adding CBD oil to your current treatment, you’ll need to speak to your GP who will then give you a prescription for CBD if the benefits outweigh any risks or side-effects.
Benefits and uses
CBD has a variety of uses, including providing relief from pain and anxiety, reducing seizure frequency, and potentially helping treat or at least reduce side effects of cancer and cancer treatments. Here are a few of the many potential benefits of CBD.
Pain
Chronic pain is common, especially in cancer patients or people with nerve trauma, and is notoriously difficult to treat. Many chronic pain sufferers find themselves on a cocktail of medications but with little relief. CBD oil shows some promise in the management of chronic pain.
An article in the European Journal of Pain in 2016 showed that topical CBD (in a balm format) could help lower pain and inflammation in animals. In an article published in Frontiers in Pharmacology, CBD oil was shown to have pain-relieving and anti-inflammatory effects in patients with pain that was unresponsive to traditional pain medications, however, the findings came with the caveats that each individual patient needs to be carefully considered and that the quality of the CBD oil needs to be regulated.
Anxiety
Anxiety is common with our high-paced modern lifestyle and even more so with the fall-out from COVID. Economic and other stressors are widespread and impact negatively on people’s health. CBD oil is well known to relieve anxiety. A study in The Journal of Psychopharmacology showed a significant reduction in anxiety levels in patients diagnosed with generalised social anxiety disorder (GSAD) treated with oral CBD compared to a placebo.
Another study in Neuropsychopharmacology showed a decrease in anxiety in people with GSAD who took CBD oil prior to speaking in public. People who are struggling with anxiety often find it difficult to sleep, but CBD oil has been shown to be an effective way to treat insomnia. A drop of CBD oil before bedtime may be the secret to a good night’s sleep!
Epilepsy
One of the areas in which the benefits of CBD has been most studied is epilepsy. As a result we have a number of well-controlled, good-quality studies that show CBD to be beneficial in the management of certain types of epilepsy. Dravet syndrome is a form of childhood epilepsy that is particularly resistant to traditional medication.
CBD was shown to significantly decrease the number of seizures in patients taking oral CBD versus a placebo, and 5% of patients actually became seizure-free on CBD during the treatment period. Obviously, because epilepsy is a very serious disorder, if you are considering adding CBD oil to your treatment, this needs to be discussed with your general practitioner or neurologist and then prescribed according to best practice.
Cancer
CBD has traditionally been used in cancer sufferers to alleviate pain, treat nausea (CBD has strong antiemetic properties) and stimulate appetite; however, it could have a far more powerful effect directly on the cancer itself. Cannabinoids, including CBD, have been shown to have some tumour-modulating effects.
In simple terms, what this means is that cannabinoids can interfere with the rate at which tumour cells replicate. Further studies are needed to determine more accurately which tumour types respond to CBD and what dose of CBD achieves optimal anti-tumour effects.
Other uses
CBD oil has many other medical uses, many of which are still in the early stages of study. Preliminary studies have shown CBD to be effective in the management of acne because it decreases inflammation and sebum production. Some early studies show promise in the treatment of Parkinson’s disease and Alzheimer’s disease, although further studies need to be done.
CBD seems to have a positive influence on blood pressure and heart health, probably due to its stress-relieving properties. As our knowledge of CBD grows and more studies are undertaken, CBD may become recognised as a management option for more and more illnesses.
How to use CBD oil
CBD oil can be used in various formulations, but the form you use will be dependent on what is locally available. Here, the most common form of CBD is as an oil that is ingested. CBD needs to be prescribed by a doctor and can then be purchased from a pharmacy, however, if it is a pharmacy that does not regularly dispense CBD products it may be expensive, so do some research before buying.
As CBD use becomes more accepted, you may find that the options for different formulations become wider. In New Zealand, all CBD prescription medication will be GMP compliant (meaning it’s produced under Good Manufacturing Practices).
Gel capsules
Gel capsules are a popular oral form of CBD oil. Ingested CBD takes slightly longer to work—about 30 minutes—and the effects are very predictable. Oral CBD is generally well tolerated.
Inhalation
CBD oil can be inhaled, ideally by vaping. Inhalation provides a high dose of CBD that acts almost instantaneously; however, there are cons to this method: we are not certain of the long-term effects of vaping on the lungs, it requires some specialised equipment and the effects can be unpredictable.
Topical application
Taking CBD oil in the form of a balm or salve is a great option for sore joints or muscles and for acne. It takes a little longer to provide relief, but the side effects are also minimal.
Sublingual
CBD oil tinctures that are used under the tongue are rapidly absorbed, and the effects are long-lasting. This is an easy way to take CBD; however, some tinctures contain alcohol, so check out for this if you are trying to avoid alcohol.
Side effects and drug interactions
CBD is generally well-tolerated; however, it does have some side effects, and it’s prudent to be aware of these. The most common side effects are dry mouth, fatigue, drowsiness, reduced appetite and dizziness.
Less common side effects are decreased sperm count, reduced coordination, cough and red eyes. Sometimes the side effects are related to the delivery method and the dose, so before stopping CBD, consider changing the delivery method or decreasing the dose. Be careful when taking other medications with similar side effects to CBD, as the side effects could be compounded.
CBD is metabolised by the same liver enzymes as certain medications, so it can increase or decrease the blood levels of some drugs. CBD should be avoided or used with caution in people taking the following common drugs:
- Warfarin (blood thinner)
- Antihistamines
- Antiretrovirals
- Some statins (atorvastatin and simvastatin)
- Certain antidepressants
- Certain antipsychotics
To be safe, if you are on any chronic medication, it is best to check with your regular doctor to determine whether or not it is safe for you to take CBD oil.
The bottom line
Considering taking CBD oil? There is increasing evidence that CBD oil can be used safely and effectively for a wide range of conditions, and more and more studies are being done to explore new areas of potential use. CBD oil is generally well-tolerated, and side effects can be minimised with appropriate dosing.
Hear Cannasouth’s CEO Mark Lucas interview with Francesca Rudkin from Newstalk ZB on how the result impacts the sector and our company’s future plans.
More than 113 cannabinoids have been discovered in the cannabis plant, including tetrahydrocannabivarin, or THCV. An obvious molecular cousin to the infamous euphoric tetrahydrocannabinol (THC), THCV offers distinct characteristics in the world of cannabinoids.
According to Raphael Mechoulam, the Israeli researcher who discovered THC in 1964,
“Most of the cannabinoids in cannabis have not been fully evaluated for their pharmacological activity. Tetrahydrocannabivarin is a potent antagonist of anandamide, a major endogenous cannabinoid. It seems possible that many of the non‐psychoactive constituents of this plant will be of biological interest.”
The Details on THCV
Probably the most distinct — and distinctly marketable — aspect of THCV is its ability to suppress appetite. This characteristic of this molecule is the opposite of THC, which has a reputation for enhancing appetite to create what is sometimes dubbed “the munchies.” This cannabinoid should be avoided by those suffering from anorexia.
The medical community finds obvious interest in the appetite suppressing qualities of molecules such as THCV. The efficacy of natural and non-addictive products, lacking the side effects of traditional pharmaceutical therapies, is of obvious benefit to consumers suffering from conditions like obesity and Type 2 diabetes.
THCV regulates blood sugar levels and reduces insulin resistance. It is believed to be helpful for osteoporosis and other bone-related conditions. For the same reasons that it is helpful for Alzheimer’s disease, this special cannabinoid shows promise for alleviating the symptoms of and delaying the neurodegeneration associated with Parkinson’s disease. THCV may also prevent and relieve panic attacks in PTSD patients.
Cannabis strains rich in THCV include Doug’s Varin, Durban Poison, Jack the Ripper, Pineapple Purps, Power Plant, Red Congolese, Skunk #1, and Willie Nelson. It is more common in sativa varieties of the herb.
The Research
Research into the medicinal efficacy of cannabinoids like THCV is increasing, although thwarted in the United States by the Schedule 1 status of cannabis. A number of studies have revealed the neuroprotective and blood sugar regulation qualities of THCV, spotlighting its efficacy for senior patients with diseases such as Alzheimer’s disease.
A 2011 study entitled “Symptom‐relieving and Neuroprotective Effects of the Phytocannabinoid Δ9‐THCV in Animal Models of Parkinson’s Disease” published in the British Journal of Pharmacology concluded that THCV can be a beneficial therapy for patients with diseases involving neurodegeneration, including Parkinson’s disease.
The study’s researchers concluded, “Given its antioxidant properties and its ability to activate CB2, but to block CB1, receptors, THCV has a promising pharmacological profile for delaying disease progression in Parkinson’s disease and also for ameliorating Parkinsonian symptoms.”
A review article published in 2012 in the journal Frontiers in Endocrinology entitled “Role of Cannabinoids in the Regulation of Bone Remodeling” demonstrated that the human endocannabinoid system—which features CB1 and CB2 receptors that bind with cannabinoids like THC and THCV—is present in not only the brain, central nervous system, and immune system, but also throughout the skeletal system.
Concluded the study, “The endocannabinoid system plays a key role in regulating a variety of physiological processes, such as appetite control, energy balance, pain perception, and immune responses. Recent studies have implicated the endocannabinoid system in the regulation of bone cell activity and bone remodeling.”
Originally published on 420 intel.
There is perhaps no cannabinoid more misunderstood than cannabinol, or CBN as it is better known.
Once thought to be the primary source of the psychoactive effects associated with marijuana, CBN has an ancient tie to cannabis’ first concentrate, hashish, and is now being explored and isolated to provide relief for conditions like insomnia.
The Mysteries of Indian Hemp
When the United Kingdom assumed control over India in the mid-1850s, it was inevitable that the subjects of the British crown would eventually encounter and consume cannabis in one of the plants primal regions of cultivation.
The nation’s subsequent interest and concern in the plant’s resinous products led to the formation of the Indian Hemp Drugs Commission in 1893. This commission represents the first major Western attempt at understanding cannabis, the humble beginnings of the path that with current social tolerance allowing for greater research and access, we now see being being freshly paved into an ultra-modern freeway.
In the years following the commission, some scientists were intrigued enough to pry apart the mysteries of “Indian Hemp.” CBN was the first cannabinoid successfully isolated from charas (otherwise known as hand-rubbed hashish) by British researchers in 1896 and, in 1933, was the first cannabinoid to have its chemical structure successfully elucidated.
A Cannabinoid in Decay
In the early years of cannabis research, CBN was immediately and wrongly singled out as the primary instigator for cannabis’ psychoactive effects. This confusion persisted until Dr. Raphael Mechoulam isolated THC in 1964. By 1975, Mechoulam and his associates had fully explained CBN’s existence as a product of THC’s degradation by heat and light.
In this way, CBN is almost the “ghost” of THC. Years later in 2008, when Dr. Ethan Russo and an international team of scientists examined a well-preserved sample of cannabis flowers that were roughly 2,700 years old, they deduced that the flowers had a relatively high THC content because they found a large amount of CBN during testing.
Being that CBN is a product of THC’s decay, one might be asking what purpose CBN might serve, but — as with all cannabinoids — it seems to have a fair amount of therapeutic potential. Those early researchers weren’t entirely wrong about what CBN was doing to our bodies, though slightly confused about its place in the entourage, so to speak. Writing in 1907, English scientist David Hooper stated, “Cannabinol when taken internally induces delirium and sleep.” Modern research has backed up this statement.
“Of all the cannabinoids, CBN appears to be the most sedative,” says Steep Hill Labs.
A Good Night’s Rest
Alta California, a cannabinoid tincture company, offers an “Insomnia Relief” tincture that is advertised as being 50 percent THC and 50 percent CBN. CBN’s other wellness-enhancing properties include an ability to mitigate anxiety and PTSD conditions, which is what Prana Bio Medicinal’s P4 capsules and sublingual tinctures are designed for. And of course, as with nearly all cannabinoids, CBN is effective with pain conditions, and for such Mary’s Medicinals CBN-only transdermal patch may be a potential source of relief.
While more uses for this once overlooked cannabinoid continue to arise, the cannabis industry will be presented with a new challenge: sourcing CBN. The cannabinoid does not occur without degrading THC, and therefore must either be obtained by old product or by treating newer product to transform the THC into CBN. The latter could prove to be a costly solution for nascent companies wanting to explore the potential of CBN, but assuredly as the level of production of cannabis rises, the price for CBN will eventually reach an affordable level for all to enjoy. While one could call the cannabinoid a ghost, given its application for modern-day medicine perhaps CBN could be better understood as the benevolent spirit THC leaves behind.
New Zealand’s only NZX listed medicinal cannabis company, Cannasouth Limited (NZX:CBD, Cannasouth), is pleased to announce that its wholly-owned subsidiary Cannasouth Plant Research New Zealand Limited (CSPRL) has been granted the first of its required licenses to cover the commercial activities of the group under the New Zealand Medicinal Cannabis scheme.
This first license covers CSPRL’s Hamilton site and allows both medicinal cannabis cultivation and possession for manufacture with certain authorised activities.
CEO Mark Lucas says: “This is an important milestone in Cannasouth’s transition from a research and development company to a commercial medicinal cannabis company.”
“As a company, we look forward to supplying New Zealand-produced, next-generation medicinal cannabis products for local and export markets, and this is another step in that journey.”
Additional licenses are being applied for to cover the cultivation activities of joint venture partner Cannasouth Cultivation Ltd (CCL) and the commercial extraction and manufacture activities of subsidiary Midwest Pharmaceutics NZ Ltd (MWL).
Researchers at the University of Sydney’s Lambert Initiative for Cannabinoid Therapeutics and Brain and Mind Centre will investigate whether cannabidiol is an effective alternative for treating chronic pain caused by spinal injury.
The research team has been awarded $1.7 million to support the project, made up of $1.45 million from NSW Health and $350,000 from the University.
The study’s lead investigator, Professor Luke Henderson – an expert in human brain imaging and pain, says half of spinal cord injury patients will develop chronic pain and current treatment options have been proven ineffective. Not only that, these treatments can introduce side effects making the condition worse.
There has been significant anecdotal and other evidence indicating cannabidiol could be useful in treating chronic pain as it reduces inflammation, but this needs to better backed and in this case applied to spine injury related pain specifically.
“While there are some studies showing that CBD can reduce pain in other chronic conditions, no one fully understands how it works to reduce pain. Our study can help tease this out,” said Professor Henderson
Part of the study will involve compare brain images of those who develop chronic pain after spinal cord injury to those who do not, which will help establish changes occurring in the brain that are responsible for the pain. The second part of the project will involve a randomised, double-blind placebo-controlled study to look into cannabidiol’s ability to reduce the pain.
Other members of the research team include the Lambert Initiative’s Professor Iain McGregor and Dr Elizabeth Cairns; and Dr Sachin Shetty, who works with spinal injury patients in her role as a clinician at Prince of Wales hospital.
The Lambert Initiative for Cannabinoid Therapeutics takes its name from Australian philanthropists Barry and Joy Lambert, who donated AUD $33.7 million to the University of Sydney in 2015 for the establishing of the center. The Lamberts have first-hand experience of the benefits of medicinal cannabis, which is being used successfully to treat their granddaughter. Mr. Lambert subsequently went on to chair hemp company Ecofibre, with one of its subsidiaries focusing on a pharmacy-grade CBD oil product line.
A study by University of British Columbia Okanagan campus shows that regular cannabis use, unlike opiate use, does not make pain sensitivity worse, the way opiates do.
Due to the alarming opiate crisis in the country, coupled with an increased interest in medical cannabis, there has been an uptick in research on how cannabis can help with pain. This new study is important because it means that, even if you use cannabis frequently to help with pain, you will not need more and more cannabis or find that you are no longer getting pain relief at all.
“Recent years have seen an increase in the adoption of cannabinoid medicines, which have demonstrated effectiveness for the treatment of chronic pain,”
said Michelle St. Pierre, one of the researchers who worked on the study. “However, the extent to which frequent cannabis use influences sensitivity to acute pain has not been systematically examined.”
“This study should come as good news to patients who are already using cannabis to treat pain,” added co-author Zach Walsh, head of the UBC Therapeutic Recreational and Problematic Substance Use Lab, the group that specifically conducted the study. “Increases in pain sensitivity with opioids can really complicate an already tough situation; given increasing uptake of cannabis-based pain medications it’s a relief that we didn’t identify a similar pattern with cannabinoids.”
Pain and Opiates
Opiates are currently the go-to prescribed items for pain, and dependence on opiates is a major issue. Patients often have to up their doses to deal with pain, which makes them even more dangerous.
“There is a different effect from opioid users; sustained use of opioids can make people more reactive to pain. We wanted to determine if there was a similar trend for people who use cannabis frequently,” said St. Pierre. “Cannabis and opioids share some of the same pain-relief pathways and have both been associated with increases in pain sensitivity following acute use.”
The study looked at those who use cannabis more than three times a week and compared them with people who were not cannabis users. Participants had their hands and arms submerged in cold water to determine pain tolerance level. From doing that, they were able to determine that cannabis does not cause hyperalgesia, or enhanced sensitivity to pain.
“Our results suggest frequent cannabis use did not seem to be associated with elevated sensitivity to experimental pain in a manner that can occur in opioid therapy,” St. Pierre concluded. “This is an important distinction that care providers and patients should consider when selecting options for pain management. These findings are particularly relevant in light of recent reports of opioid overprescribing and high rates of pain in the population, as it suggests that cannabis may not carry the same risk of hyperalgesia as opioids.”
This is a hugely important study for the brave new world of cannabis pain research, as it provides even more evidence that cannabis is a safe alternative to dangerous, habit-forming opiates. More research will reveal even more details about how cannabis works with pain management.
The aging process for humans can really be a sad thing. As time goes by, quality of life diminishes and the human body starts to break down as conditions develop. Unfortunately, it’s a reality that cannot be overcome.
Getting older can be a tough thing to navigate for many people. The aches and pains are a constant reminder that Father Time is undefeated. Getting adequate sleep is particularly tough for many senior citizens for a multitude of reasons, not the least of which is side effects from pharmaceutical prescriptions.
Anyone who has looked at a seniors’ medicine cabinet will be quick to point out that the number of prescriptions adds up with age. It’s a slippery slope — seniors get prescribed one pharmaceutical medicine to treat a condition, and the side effects from that prescription then require their own prescription.
The situation can get out of hand very quickly, and given how addictive and harmful some pharmaceutical drugs can be, it can also be a dangerous situation.
The same cannot be said about cannabis. A recent study explored seniors, cannabis, and reported quality of life, and the results are raising a lot of eyebrows.
Improved Quality of Life
A team of researchers recently conducted a study in which they surveyed senior citizens (over 60 years old) and asked them questions about quality of life.
Some of the seniors that participated in the study reported using cannabis for medical purposes while others did not. “[We] identified a strong positive association between higher frequency of cannabis use and improvement to HRQL and HCU [health-care utilization] scores. …
Our regression modeling also identified a strong positive relationship between higher frequency of cannabis use and self-reported improvements to pain symptoms. The positive relationship between near-daily use and improved reports offers further evidence of the perceived value of medical cannabis as a therapeutic approach for pain management,” the researchers stated.
The results of the research are in line with previous studies, as pointed out by one of the leading cannabis advocacy groups, NORML.
“These results are hardly surprising. Many seniors likely experimented first-hand with cannabis during their youth and are now returning to it as a potential therapy to mitigate many of the health-related symptoms that come with older age, including chronic pain. Many seniors are well aware of the litany of serious adverse side-effects associated with available prescription drugs, like opioids, and they perceive medical cannabis to be a viable alternative,”
stated NORML Deputy Director Paul Armentano in a press release.
The Safer Choice
Senior citizens are obviously welcome to pursue whatever medication strategy that they are most comfortable with. Patients should always seek the advice of medical professionals, including and especially their primary physician. With that being said, at least according to the results of the previously cited study, seniors would benefit from at the very least talking about medical cannabis with their doctor.
If the doctor is not knowledgeable about the benefits and risks of medical cannabis, which is unfortunately fairly common, patients should offer up the results of the previously cited study and other information published by Cannabis & Tech Today to get the conversation started. Cannabis is not only safer than most pharmaceutical drugs, it’s also safer than many substances that are common in households around the globe.
Medical cannabis may not help every suffering patient in every situation, however, it’s a safe enough substance that there’s not a lot to lose if a patient wants to try medical cannabis (responsibly, and with a doctor’s approval, of course).
Research out of University of Newcastle in Australia indicates cannabis has the potential to kill or inhibit cancer cells without impacting normal cells.
Cancer researcher Dr Matt Dun collaborated with Australian Natural Therapeutics Group (ANTG), which produces a variety of cannabis with high levels of cannabidiol (CBD) and low levels of tetrahydrocannabinol (THC) called Eve.
We mentioned ANTG and Eve last year when the company was successful in having the strain listed on Australia’s Register of Therapeutic Goods (ARTG) as being suitable for export. ANTG notes Eve as has having 11-17% CBD and less than 0.1% THC.
ANTG asked Dr. Dun to test Eve against cancer.
“…so we initially used leukaemia cells and were really surprised by how sensitive they were,” he said. “At the same time, the cannabis didn’t kill normal bone marrow cells, nor normal healthy neutrophils [white blood cells].”
Dr Dun and his team also ran comparisons between other cannabis strains containing THC and those with low levels of THC but with high levels of CBD. For both leukaemia and paediatric brainstem glioma, the cannabis with high CBD levels was more effective at killing cancer cells than THC varieties.
The research also looked at other studies delving into cannabis’s potential anti-cancer properties; both in terms of THC and CBD.
“The CBD variety looks to have greater efficacy, low toxicity and fewer side-effects, which potentially makes it an ideal complementary therapy to combine with other anti-cancer compounds,” said Dr. Dun.
Dr. Dun isn’t stopping here – the next stage involves investigating what makes cancer cells sensitive while leaving normal cells unscathed, clinical relevancy aspects, and testing on a variety of cancers.
It’s important to note this research happened in a laboratory environment. While any news regarding the use of cannabis in cancer treatment can be very encouraging, patients and their families need to manage their expectations and consult with their oncologist before varying, stopping or adding a treatment. Dr Dun stressed that CBD-enriched cannabis isn’t ready for clinical use as an anti-cancer agent at this point in time.
The study report: Can Hemp Help? Low-THC Cannabis and Non-THC Cannabinoids for the Treatment of Cancer, was published in the journal Cancers.
Through its joint venture subsidiary, Cannasouth Cultivation Limited (CCL), Cannasouth Limited has entered into a service agreement with EAH Enterprises LLC, trading as Vera Cultivation in Colorado, USA.
Vera Cultivation (Vera) is a US market leader in the production of high-quality cannabis product using world class and proprietary growing systems.
The agreement is for the supply of services to finalise the design of CCL’s cultivation facility, develop (licensed) operating systems and procedures, and provide support for the rapid and successful implementation of CCL’s state-of-the art growing facilities.
Vera is a well-established cultivation business operating in one of the most competitive cannabis cultivation markets in the world. The agreement will provide CCL with the ability to produce high quality yields at low cost.
The agreement supports an important milestone for Cannasouth towards meeting its business objectives, which includes producing next generation, affordable, New Zealand-grown and manufactured pharmaceutical grade medicinal cannabis products for New Zealand patients and export markets.
Cannasouth conducted extensive due diligence and consultations with many established growing operations in Europe and USA, and carried out site visits prior to Covid-19 travel restrictions.
Cannasouth CEO Mark Lucas says
“The company selected Vera because of its market leading, high-end facilities and operating systems, and its consideration for the environment.”
Vera’s hybrid greenhouse model combines the benefits of greenhouse production with high-end indoor cultivation technology. Compared to other growing models, Vera has a minimal resource input approach to production, which is great for profitability and fits well with Cannasouth’s own brand positioning.
The result is a sustainable, consistent, high quality, high yield product at some of the lowest production costs in the industry. Both businesses have strong values based on sustainability and the environment, which is why this partnership makes so much sense.
Cannasouth Cultivation’s JV partner, Aaron Craig, says, “Ultimately, we want to produce the best raw material for our customers. Alex Park [Vera CEO] and his team are the best in the business. Now we have formalised our great relationship via this service agreement, we are looking forward to implementing our plans. It’s an exciting time for all parties involved.”
“New Zealand is embarking on a journey we are passionate about,” says Alex Park, Chief Executive Officer, Vera Cultivation. “We are excited to be working with Cannasouth to lend them our knowledge and expertise in design and operating systems, which will enable them to achieve operational excellence and deliver product as soon as possible to the market”.
The term of the service agreement is two-and-a-half-years and includes provisions relating to intellectual property rights. It is subject to applicable New Zealand laws, as well as a number of territorial and commercial restraints. Services will be performed by Vera in two phases, with compensation being staged and linked to key deliverables.
NZX listed medicinal cannabis company, Cannasouth Limited has appointed experienced healthcare sales and marketing executive John Sanders as Chief Commercial Officer.
Sanders will be responsible for developing and implementing marketing and sales strategies for the company’s first medicinal cannabis products. He brings to Cannasouth more than 20 years of commercial, sales and marketing experience, both globally and in New Zealand, with blue chip pharmaceutical and health supplement companies such as Bayer, Merck, Wyeth and Roche.
Currently marketing and projects manager for Auckland Transport, Sanders has a strong background in healthcare. His roles have included senior sales, marketing and general management leadership positions covering over the counter and prescription medicines in categories such as pain management, skin care, multi-vitamins, allergy, and cough & cold.
Cannasouth CEO Mark Lucas says Sanders is a key hire for the company as it gears up to bring its first medicinal cannabis products to market later this year.
“John’s skills and expertise will help us ensure we develop commercially viable products for our key markets. He will be responsible for identifying and creating distribution channels for our products, as well as making sure we get our pricing strategy right.
“Promoting the right messages to develop and maintain a positive reputation for Cannasouth’s products and services is crucial. John has a proven track record in planning and delivering successful marketing campaigns, which demonstrate his ability to understand the end consumer.
“John’s breadth of experience in healthcare both in New Zealand and overseas will also be vital as we continue to monitor trends in the emerging medicinal cannabis market, and identify opportunities for Cannasouth to diversify and grow.
“With strong financial acumen and extensive networks across the healthcare industry, he will be a valuable addition to the Cannasouth leadership team.”
Sanders’ first priority will be developing sales strategies for Cannasouth’s white label medicinal cannabis products.
In May this year, Cannasouth announced it had entered into a supply agreement with MediPharm Labs Australia Pty Ltd (MediPharm Labs Australia) for the supply of white label medicinal cannabis products into the New Zealand Market. Under the agreement, MediPharm Labs Australia will supply a range of products that meet the required high-quality standards as regulated under the New Zealand Medicinal Cannabis Scheme.
Sanders says Cannasouth is a reputable and well-resourced organisation to invest and deliver in a highly exciting and competitive emerging industry.
“The medicinal cannabis industry is growing quickly overseas, which presents a valuable commercial opportunity for a New Zealand company like Cannasouth.
“As in overseas markets, sales in the New Zealand medicinal cannabis market will take time to build as we educate healthcare professionals and they become comfortable with prescribing in a more accessible and relatively new category.
“I look forward to working with the Cannasouth team to lead and deliver strong and differentiated sales and marketing strategies that get results for our shareholders and for patients.”
Born and bred in Wellington, Sanders has a Bachelor of Business Studies in Finance and a Diploma of Business Studies in Marketing, both from Massey University. He officially takes up this role with Cannasouth in August 2020.