Tilray Brands gains approval for in‑house cannabis testing in Portugal
INFARMED authorized microbiological and chemical/physical tests at Cantanhede, where Tilray expects faster batch releases and lower costs.
Theo Marchetti
Portugal's medicines regulator INFARMED has approved in-house quality testing at a medical cannabis facility in Cantanhede, according to an Oct. 13 announcement. Tilray Brands, Inc. NASDAQTLRY TSETLRY says the approval brings two testing categories in-house for a medical cannabis division that has served patients in more than 20 countries.
The approval allows the laboratory at Tilray Medical's EU-GMP-certified Portuguese facility to conduct microbiological and chemical/physical testing. Tilray says bringing those tests inside its production operation will reduce reliance on outside laboratories for flower lots and improve control over batch release.
Tilray shares closed at US$3.36 on Nasdaq on Monday at 4:00 p.m. EDT, according to NASDAQTLRY. That close preceded Tuesday's laboratory announcement.
Tilray expects lower batch-release costs and shorter testing timelines, but the announcement gives no savings estimate, testing capacity or number of days that could be removed from the process.
Laboratory Approval Covers Two Testing Categories
Tilray Medical is the group's medical cannabis division, supplying regulated international markets from a platform that includes cultivation, production and distribution. The company describes Cantanhede as a centre for testing and international supply as well as growing and processing cannabis.
The company identifies Germany, the United Kingdom, Poland and Italy among the markets its supply chain serves. It says the testing authorization will help move flower more efficiently from harvest through release and sale, while supporting more reliable supply to patients and commercial partners.
"By reducing reliance on third-party testing for flower lots, the Company can lower batch-release costs, shorten testing timelines, and move product more efficiently from harvest to release and sale," Tilray said in its announcement.
The authorization brings those testing capabilities inside the Cantanhede site's cultivation and production platform. Tilray says the change builds on increased output at the Portuguese facility, although Tuesday's announcement does not quantify that increase or translate faster testing into additional sales.
Cannabis Sales Fell In The First Quarter
Tilray's cannabis net revenue fell to US$56.1 million from US$64.5 million a year earlier in the quarter ended Aug. 31, according to its Oct. 8 results. Cannabis gross margin increased to 39 per cent from 36 per cent over the same period.
The group also sells beverages, wellness products and pharmaceutical distribution services. Total net revenue rose to US$257.1 million from US$209.5 million a year earlier in the quarter ended Aug. 31, so the cannabis decline occurred within a growing diversified business.
Aurora Cannabis Inc. TSEACB NASDAQACB is also expanding European medical cannabis supply. In its Oct. 8 announcement, Aurora said it completed an expansion in Leuna, Germany, expected to more than double annual flower output.
Aurora said Saxony-Anhalt's State Office for Social Affairs, Youth and Health issued an expanded EU-GMP licence for the newly built areas. That authorization covers added manufacturing space, while Tilray's Portuguese approval covers laboratory testing.
Read more: Aurora Cannabis expands German facility, expects more than double flower output
Tilray announced the laboratory authorization on Oct. 13. Its release does not attach INFARMED's order, identify an approval file number or give a separate effective date or timetable for the first batches tested in-house.
