Little Green Pharma has revised its distribution agreements following clarification from the Therapeutic Goods Administration (TGA).
The move comes after the TGA issued notices to all medicinal cannabis wholesalers clarifying the rules for unregistered pharmaceutical products.
LGP said it has successfully implemented revised agreements with all of its Australian distribution partners in compliance with the clarified rules, resulting in the company recognising revenue when product is sold to the pharmacy rather than to the wholesaler.
It said its distribution partners now act as distributors rather than wholesalers, still responsible for warehousing and distribution, but without taking legal ownership.
The company said the new arrangements will likely lead to an increase in LGP’s revenue and cost of sales, but would have “no material impact” on gross profit.
