Health Insurer adds cannabis to coverage with Little Green Pharma partnership

Members of private health insurer Health Insurance Fund (HIF) will be given priority access to Little Green Pharma (ASX: LGP) and their research into medicinal cannabis with the two commencing a strategic partnership focused on improving patient quality of life. 

Under the partnership, HIF members will be given priority participation in Little Green Pharma product trials, as well as rebates on medicinal cannabis products as part of their membership. 

“Our company has always had Australian patient access at the forefront. We were the first company in Australia to launch with locally-grown and affordable medicinal cannabis products,” said Little Green Pharma Managing Director, Fleta Solomon. 

“Our disruptive pricing strategy led to the cost of medicinal cannabis products being significantly reduced in price nationally.” 

“We are proud to further contribute to driving improved affordability and our partnership with HIF, another patient-focused company, will mean better access to medicinal cannabis products for patients across Australia.”

While the partnership does not bring with it any material value to Little Green Pharma initially, it highlights changing attitudes in Australia toward medicinal cannabis which will undergo considerable change in 2021. 

It is expected that in February 2021, the final regulatory approval will be passed to de-schedule cannabidiol (CBD) from a Schedule 4 drug to Schedule 3, enabling Australians to purchase CBD products over-the-counter upon consultation from a pharmacist, without the need for a prescription.

For the quarter ending 30 September 2020, Little Green Pharma reported record sales revenue of $1.29 million from more than 8,500 products sold, a 41% increase on the previous quarter