MediPharm Labs (TSX: LABS) has secured a deal with Canada’s largest pharmacy chain.
The weed extraction company said Thursday it was selected by Shoppers Drug Mart to supply cannabis concentrate products to medical patients across Canada through its online platform Medical Cannabis by Shoppers.
Under the agreement, MediPharm said it will use its proprietary extraction technology and pharmaceutical approach to provide Shoppers with a wide range of concentrate-based products starting with bottled oils. The Ontario company will provide gel caps and topicals at a later date, it added.
MediPharm says it expects its first batch of cannabis oils to ship out to Shoppers within the first two months of the new three-year contract. The agreement is also subject to renewal for an additional two years, according to the release.
“MediPharm Labs is proud to be partnering with one of Canada’s most trusted names in retail to bring new and innovative pharmaceutical-quality cannabis concentrate products to Shoppers’ medical consumers across Canada,” said Pat McCutcheon, CEO, MediPharm Labs.
“With our pharmaceutically trained team, our GMP-certified platform and research licence permitting human trials, MediPharm Labs has the ability to develop advanced cannabis products backed by proprietary scientific research that will serve as the foundation for further expansion of future offerings.”
ANNOUNCEMENT: MediPharm Labs to Supply Medical Cannabis Products to Medical Cannabis by Shoppers (3 yr term; products to ship within 60days) $LABS $MEDIF $MLZhttps://t.co/f9U0jGvN3d pic.twitter.com/Uab9UBcN9n
— MediPharm Labs (@MediPharmLabs) February 20, 2020
Shoppers, MediPharm focus on medical market
Medical Cannabis by Shoppers launched in January 2019. The platform ships products from cannabis companies directly and discreetly to patients in all provinces and territories in Canada. Under current regulations, pharmacists cannot dispense medical cannabis directly from a pharmacy.
MediPharm’s extraction rival Valens GroWorks Corp. (TSX-V: VLNS), along with producers Aphria Inc. (TSX:APHA) and Aurora Cannabis Inc. (TSX:ACB), have each signed distribution deals with Shoppers.
Shoppers has also partnered with blockchain company TruTrace Technologies (CSE:TTT) and major league auditing firm Deloitte to track medical cannabis orders. Shoppers says the partnerships help it give pharmacists and physicians assurance on quality and safety for patients.
Shoppers also provides guidance to medical cannabis patients from a team specialized advisors. MediPharm said such guidance is important in ensuring patients receive the specific products best suited for their needs.
According to Statistics Canada, approximately 1.1 million Canadians use cannabis for medical purposes.
MediPharm shares rose 3.3 per cent on the Toronto Stock Exchange Thursday.
Since the start of 2019, Medipharm’s valuation is up 71 per cent, making it one of the rare pot stocks to avoid a recent decline.
The company said it will report its full year 2019 and fourth quarter financial results before markets open on Monday, Mar. 30.
Top image via Wikimedia Commons