Australia’s Bioxyne Ltd (ASX: BXN) (FRA: PR8) has agreed to manufacture medicinal cannabis products for Aurora Cannabis Inc (TSE: ACB) (NASDAQ: ACB) (FRA: 21P) as the Canadian licensed producer pushes forward with international ambitions.
Through its subsidiary Breathe Life Sciences, Bioxyne produces pharmaceutical-grade oils, vapes and gummies in its GMP-licensed Queensland facility. Aurora is placing purchase orders for these items and distributing them to patients in Australia and the United Kingdom.
Initial orders already cover more than 5,000 sublingual oil units and over 20,000 vapes, along with two gummy varieties. Bioxyne is receiving deposits with each order and collecting the balance after quality assurance clearance and before shipment. The companies project this relationship to generate up to C$4.8 million in manufacturing revenue over the next 12 months as volumes and product lines expand.
The partnership operates on Bioxyne’s established blank/white-label model. The firm sources raw materials globally, manages end-to-end production in cleanrooms and delivers finished dose forms without owning brands or patient relationships.
Aurora has gained a GMP-certified partner that meets stringent regulatory standards needed for its key export markets. The Edmonton-based LP runs large-scale facilities in Canada and Germany and posted strong medical cannabis sales in Europe, Canada and Australia-New Zealand in its latest quarter financials.
Overall, Bioxyne benefits most from the deal. The incremental revenue will flow directly to its core manufacturing business and working with a major company like Aurora bolsters its manufacturing reputation. Already a global leader in the industry, Aurora receives supplementary production support rather than any kind of transformative shift.
This agreement builds on Bioxyne’s significant expansion since it obtained its GMP license in February of 2024. The company scaled its Brisbane operations from a one-employee operation to a facility with over 100 staff, manual flower inspection teams and specialized capabilities for oils and vapes. The complex now also produces MDMA and psilocybin capsules used in clinical trials.
Breathe Life Sciences is currently constructing a matching GMP site in Scotland that aims to help serve UK and European markets by year-end. Parent company Bioxyne now expects up to C$72.3 million in revenue and C$15.4 million in EBITDA for 2026.
Nonetheless, challenges remain. The prevalence of cannabis sector investor fatigue continues to keep valuations down despite operational progress.
Read more: Aurora Cannabis announces pivot to ‘solely’ medical distribution
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