Queensland firm Medibis has delayed plans to build a A$180m manufacturing facility blaming tough market conditions and GP reluctance to prescribe medicinal cannabis.
The company raised A$1.8m in crowdfunding from more than 900 investors in 2021, with plans to launch a range of cannabinoid formulations and eventually build its own facility near Toowoomba.
However, executive director Angus Chapel told The Chronicle the project is now on hold.
He said: “There’s no real movement, the changing market and appetite for investors, the timing didn’t line up. We’re still executing our product launch, we’re working to make sure we’ve got a product to market.
“Some [start-ups] that didn’t get that go-to-market process right have gone belly up and been snapped up. It’s still on our radar, but we want to make sure the patient base is satisfied.”
According to its website, Medibis is “focused on bringing high-quality, consistent cannabis medicine to Australian patients with our network of growing partners around the world”.
But Chapel claimed many doctors remain unwilling to prescribe, with patients more enthusiastic about the medicine than their GP.
“It’s a much-faster uptake from patients than prescribers – patients are passionate about finding out, but prescribers are much less willing,” he said.
He called for more education on medicinal cannabis for the next generation of GPs “because the current cohort didn’t have that”.
However, he said the company’s customer base was still growing – currently sitting at around 1,000 patients – leaving it well placed to build or buy a facility in the future.
“We’re in a really good position, we’re not holding any debt and, with all of the options with products, it gives us an idea of what people are needing or using,” he said.
And Chapel insisted the firm had “dodged a bullet” by being patient.
“It was absolutely the right thing to do, the timing and scale needs to be in line with the market. Right now, if I had that investment money I would pull the lever, but we’re a year or two down the track from [that].”
