Ontario-based Medipharm Labs Corp (TSE: LABS) (OTCMKTS: MEDIF) has secured a major supply deal with a top Brazilian pharmaceutical operator that has been in business since 1947.
The company, which operates a Canadian facility and an Australian subsidiary, will provide Laboratório Teuto with its extracts and concentrates. MediPharm has GMP certification valid in Brazil at its primary plant in Barrie, Ontario.
Initial shipments will be sent to the South American nation once import and export permits have been obtained in the coming weeks.
MediPharm has highlighted that the Brazilian medical cannabis market has a forecasted compound annual growth rate of 20 per cent, which has provided incentive to establish supply channels like this.
MediPharm CEO David Pidduck says the company is very fortunate to have a long-term partnership with Teuto.
“We are making moves with one of the best in Brazil,” the company’s co-founder, Keith Strachan, said in a post on X.
MediPharm made significant financial progress last year, reporting a 15 per cent year-over-year net revenue rise in Q3 results at C$9.8 million. Also, a 37 per cent year-over-year spike in international medical marijuana revenue.
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Brazil decriminalized possession last year
Residents are now permitted to possess up to 40 grams and grow up to six plants.
It is uncertain if and when a recreational market will open.
Statista has predicted that the nation’s medical cannabis market will be worth about US$229 million by 2028.
The number of patients treated with medical marijuana in Brazil increased by 56 per cent last year to 672,000.
Tilray Brands Inc (TSE: TLRY) (NASDAQ: TLRY) and Aurora Cannabis Inc (TSE: ACB) (NASDAQ: ACB) are also known to supply the country’s medical sector.
🇧🇷: Brazil's medical #cannabis market is super hot.
The number of patients consuming cannabis based medicines is up 50% in 2024 with imports comprising the majority of saleshttps://t.co/brTIVnqoN7 pic.twitter.com/lsaCyvEF9J
— Deepak Anand (@_deepakanand) December 2, 2024
rowan@mugglehead.com
