South Australian firm MedTEC Pharma has signed a A$10m product supply contract with an unnamed “world-leading pharmaceutical business” ahead of a possible IPO next year.
The Herald Sun reports the parties have agreed a three-year deal for cannabis biomass to be delivered from MedTEC’s production facility in SA’s Riverland region.
Founded in 2019, the company has developed a 20-hectare cultivation and production site, and is working with research groups including the South Australian Health and Medical Research Institute (SAHMRI) to deliver clinical evidence for medicinal cannabis.
Co-founder and chief executive Richard Barrett told The Herald Sun: “Our initial focus will be to serve the high-demand chronic and neuropathic pain markets, but we will also develop adjacent solutions for sleep, appetite and anxiety.
“Our business approach, supported by the strategic partnerships we have in place, will allow the medicinal cannabis industry to eventually reflect the same high levels of scientific rigour and development maturity that characterise the most advanced speciality fields of medicine.”
MedTEC is federally licensed for the cultivation, manufacture, research and development of medicinal cannabis and funded primarily by South Australian investors, with an IPO planned for 2023/2024.
As well as SAHMRI, the company is working with the Waite Institute and the Gianneschi Group in the US to explore emerging technologies and applications for medicinal cannabis as demand grows.
Barrett added its ambition is to help transition medicinal cannabis from a niche to a globally accepted industry.
“Our five-year partnership with SAHMRI will focus on the delivery of evidence-based results to support the entry of medicinal cannabis products on to the Australian Register of Therapeutic Goods meaning that health professionals will be able to prescribe medicinal cannabis products with confidence,” he said.
SAHMRI executive director Professor Steve Wesselingh added: “Medicinal cannabis is an exciting new sector in population health and our partnership with MedTEC Pharma provides us with the opportunity to contribute to ongoing research and development at the highest level.”
