Althea an affiliate of the Aphria Inc (NYSE:APHA) has been cleared by Australian authorities to engage in the manufacture of cannabis-based products in the forms of tinctures and resins. Aphria Inc (NYSE:APHA) broke the news about its Australian strategic partner’s milestone stating that with the much anticipated license, the company can now focus on efforts to make pharmaceutical-grade medical cannabis available to eligible patients in the region.
Entry into manufacturing
Through its CEO Josh Fegan, Althea expressed immense joy in receiving the permit and confirmed that it will now focus on the next step of strategic planning for its cannabis production facility in Victoria. The company’s CEO affirmed that, Althea shareholders can look forward to a vertically integrated, seed-to-sale, state of the art medicinal cannabis operation, comparable to that of our Canadian partner Aphria.”
The manufacture License comes at the time when the company’s medicinal cannabis products are already gaining traction in the market. Patient numbers already under the company’s product’s prescription have surpassed the 100 mark with more and more doctors join the Althea bandwagon even as the company targets over 1,000 patients by this time in 2019. The company’s plans to conduct a series of educations to doctors about the benefits of its products and the effectiveness it brings to ensure that they achieve their goal.
Aphria’s strategic partnership and supply deals
Early this year, Aphria signed a supply agreement with the Australian firm and even investing $2.5 million for 25% equity in the company. The strategic partnership is in line with Aphria’s plan of establishing a global presence for its products and brand.
In regards to the supply agreement, Aphria will be obligated to supply Althea with co-branded cannabis products to for the emerging Australian marijuana market. Althea was already granted the import permit in order to receive the shipments from Canada.
This is not Aphria’s first attempt to enter the Australian Cannabis market. Back in October last year the company shipped its products to Medlab Clinical Limited and it has evidently not gotten enough of the market.