New Zealand’s first nationally certified medical cannabis distributor will be leaving its operations in the country behind to focus on Australia’s rapidly developing industry.
Tilray Medical, a subsidiary of Tilray Brands Inc (TSE: TLRY) (NASDAQ: TLRY) (FRA: 2HQ), confirmed that it would exit New Zealand’s market by May 31 in an email sent to a patient from one of its clinics last week.
“If you really enjoy your Tilray oils or flower, it might be a good idea to get more sooner rather than later,” said r/MedicalCannabisNZ chatroom contributor “justagreenkiwi.” Another Reddit Inc (NYSE: RDDT) user commented saying that the nation’s requirement for low prices on medical marijuana was a major factor prompting the company to pack its bags.
This move was later confirmed by Tilray in an email sent to the local publication The Post, which is owned by New Zealand’s media company Stuff.
“Our priority is to manage this transition effectively, minimizing any disruption and ensuring Tilray patients in New Zealand have access to necessary treatments during and after the transition period,” a representative said in the email.
Tilray then added that it would be “focusing on regional growth in Australia, where it intends to maintain and expand its medical cannabis operations” in the communications.
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Australian market is expected to go gangbusters
The Aussie medical cannabis sector has been experiencing 25 per cent compound annual growth and is expected to continue to do so. Patients spent approximately C$355 million on product during the first half of 2024 alone.
Market analyst Grand View Research anticipates an even higher rate of annual growth at approximately 36 per cent until the end of the decade.
Regulators have issued more than 2.2 million prescriptions since medical pot was legalized in the country in 2016.
Recreational marijuana remains illegal federally with political opposition ensuring that it stays that way for the time being.
Last week, Tilray Medical introduced a new line of infused candies to Australian patients. The Good Supply Pastilles are available in strawberry, pineapple and raspberry with THC only, THC and CBD or CBD only.
Last month, representatives attended the Australian Pharmacy Professional Conference and Trade Exhibition in the Gold Coast city to educate attendees about their Redecan, Broken Coast and Good Supply brands.
“It was fantastic to reconnect with industry colleagues, build new relationships, and be part of such a dynamic event,” Tilray Medical said on social media.
Cann Group Ltd (ASX: CAN) (OTCMKTS CNGGF) (FRA: CVJ), Avant Brands (TSE: AVNT) (OTCMKTS: AVTBF) and IDT Australia Ltd (ASX: IDT) are some of the other companies serving the nation’s medicinal sector at the moment.
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