Elixinol Wellness and Health House International have signed a deal to sell CBD products across Australia under the Special Access Scheme.
The supply and distribution agreement enables Elixinol to import its branded CBD products from the US into Australia from July.
While the company could not put a figure on the volume of orders it expects over the two-year term, it said it represents the continued execution of its global strategy and will expand Elixinol’s footprint in Australia.
Health House is one of Australia’s largest distributors of medicinal cannabis, with access to 5,700 pharmacies nationally. In light of the agreement, Elixinol has terminated its distribution agreement with PharmaCann.
It told the ASX: “Health House has greater reach across Australia with its established pharmacy distribution business and access to specialist prescribers. The contributions from the PharmaCann agreement have not been material to Elixinol’s operations.”
Global CEO Oliver Horn added: “We are very excited about partnering with Health House to bring our products to market here in Australia. A fast-growing number of patients are receiving help in the form of CBD via the TGA’s Special Access Scheme and it is rewarding to know that soon our Elixinol products will make a contribution to people’s wellbeing.
“This agreement delivers on our strategy to create a global wellness business by accessing the growing Australian market and utilising our Hemp Foods Australia business and corporate head office capabilities to grow our local business which already accounts for over a third of total group revenues.”
Health House chief operating officer, Australasia Paul Mavor said: “Elixinol is one of the world’s biggest CBD companies with a global footprint. Health House looks forward to supporting their range of medicines and hemp products in the Australian market.”