Epsilon Healthcare has signed a binding term sheet and two-year manufacturing agreement with Cannim Australia to produce cannabis products at its Southport Facility. 

Under the agreement, Epsilon’s EU Good Manufacturing Practice (GMP) compliant Southport facility will produce medicinal cannabis products from Cannim raw material for supply into the Australian and global markets. 

Epsilon’s manufacturing arm THC Pharma will receive bulk imports of dried flower for the packaging and release of Australian GMP dried flower.

THC Pharma will also work on contract manufacturing opportunities for global third parties using Cannim’s cannabis material as an active pharmaceutical ingredient (API), including supplying to parties referred to Epsilon by Cannim.

Epsilon has already packaged, tested and released for the supply the first batch of Cannim’s Jamaican ‘HummingBud’ dried flower products. The products are available on prescription via Epsilon’s wholly owned clinic network Tetra Health.

THC Global CFO Jarrod White
Epsilon chief executive officer Jarrod White

There are no minimum order commitments in the deal, but Epsilon expects to see continuing purchase orders from Cannim over the course of the partnership. 

Epsilon chief executive officer Jarrod White said: “Matching our high-volume EU GMP compliant Southport facility with Cannim’s high-volume GACP Jamaican medicinal cannabis places both companies in a strong position to deliver significant volumes of high-quality medicines for both the Australian and global export markets.  

“The partnership contemplates all areas of the Epsilon value chain, from local import and handling of dried product expertise, to export, and assisting in the logistics and distribution of the final product. This is reflective of the significant progress and capability improvements at our Southport facility in the preceding 12 months.”

Cannim chief operating officer Lachlan Cameron added the agreement will allow the company to bring its Jamaican flower to Australia through a GMP-certified production facility. 

To date, Epsilon has received three imports of Cannim’s cannabis starting material, with further imports scheduled for this year to be released as final product during Q4 2021 and into 2022.

Hannah Adler

Hannah is a communications professional and early-career researcher in the disciplines of health communication and health sociology. She is a PhD student at Griffith University currently writing a...