Rua Bioscience has struck a sales and distribution agreement with a UK clinic in a deal it says could generate NZ$10 million (A$8.3m) over two years.
It is the firm’s largest export contract to date and will provide near-term commercial rewards and “long-term brand building potential”, the company said.
“The partnership gives Rua immediate access to an established clinic network, pharmacy relationships, and prescriber connections that would take years to build independently,” Rua said.
At the request of the clinic, Rua declined to reveal the identity of its new partner, describing it only as “one of the UK’s largest medicinal cannabis clinic and distribution businesses”.
The UK has become a major export target for Australian and New Zealand firms with latest data showing the market has 140,000 medicinal cannabis patients.
A report from data and intelligence firm Prohibition Partners found UK imports doubled to more than 30,000kg last year, while the number of products climbed from 374 to 818.
“This is no longer a niche, fringe market,” Prohibition Partners senior analyst Alexander Khourdaji said. “In the space of two years, the UK has become one of the fastest-growing medical cannabis markets anywhere in the world… the number of people accessing treatment is growing faster than almost anyone expected.”
Rua chief executive Paul Naske said: “Rua will supply medical cannabis flower cultivated in Aotearoa, New Zealand using genetics sourced from New Zealand’s legacy market. Our strategy has always been to connect Rua’s differentiated New Zealand genetics with high-value international markets.
“This agreement represents an extremely important milestone in Rua’s international growth strategy and further validates the quality and uniqueness of our New Zealand-grown product offering.
“It is strong step forward for the Rua brand internationally and an important development for our shareholders.”
Rua added that market remains almost entirely import-dependent “making it a direct and material opportunity for quality-assured international producers”.
