Australia’s Little Green Pharma Ltd (ASX:LGP) announced on Monday it had been granted a new Manufacture Permit for its manufacturing facility by the Office of Drug Control (ODC).
The permit enables in-house extraction once LGP’s next crop is harvested and the company says this will result in reduced manufacturing costs and improved manufacturing efficiencies.
“Receiving this Manufacture Permit gives us the internal capability to manufacture cannabis extracts at our manufacturing premises and is a significant event for Little Green Pharma,” said LGP Managing Director Fleta Solomon.
Ms. Solomon stated the company is now waiting on an expanded ODC Medicinal Cannabis Cultivation and Production Permit. When that is received it will enable the company to start planting at its expanded cultivation facility and to significantly ramp up production. The expansion, completed in March this year, will enable production of up to 110,000 bottles of medicinal cannabis annually – approximately 10 times LGP’s current production capacity.
“This increased production capacity will give Little Green Pharma the ability to meet both Australian and offshore demand for medicinal cannabis products,” said Ms. Solomon.
While on the topic of offshore demand, last month the company announced what it says was an Australian-first – exporting medical cannabis products that were destined for use by patients in the UK. This was part of a 5-year sales agreement with Astral Health (UK) to supply suite of medicinal cannabis products.
Its other notable achievement overseas was the inking of a 3-year sales agreement with DEMECAN (Germany) for up to 1,000kg of dried flower or 48,000 units of oil product, or a combination thereof per annum.
Closer to home, LGP says more than 3,175 patients were using LGP products in Australia as at the end of March and it has sold more than 10,450 bottles of medicinal cannabis oil since August 2018. For the quarter ended March 31, LGP recorded quarterly sales of 4,029 bottles, a 40% increase on the previous quarter.
Little Green Pharma listed on the ASX on 20 February 2020 and raised $10 million at IPO.