A healthcare policy change passed in France is likely to see the country quickly targeted by medicinal cannabis companies with Little Green Pharma (ASX: LGP) quick to confirm their plans to increase product distribution to the country thanks to newly favourable healthcare legislation.
The recent amendment to the Projet de loi de financement de la Sécurité sociale (Social Security Financing Order) outlines a post-pilot supply framework for medicinal cannabis starting from March 2024. The amendment introduces a 9-month transitional period, during which only existing pilot suppliers, including LGP, Aurora, and Panaxia, are authorised to supply medicinal cannabis to patients.
Little Green Pharma secured its participation in the pilot back in 2021 in collaboration with leading French pharmaceutical distributors Intsel Chimos and Centre Lab. The Company was appointed as the primary supplier and distributor of LGP’s 1:20 THC:CBD and CBD50 medicinal cannabis oils for a two-year French pilot program. The success of the pilot program led to its extension for a third year until March 2024, with LGP and Intsel Chimos continuing as primary CBD oil suppliers.
Following the Transitional Period, a subsidised public access program will be established, aiming to improve accessibility to medicinal cannabis in France.
Priority access to the friendly regulatory environment is a small win for CEO Paul Long who took over the role from Fleta Solomon in August 2023.
“Our active involvement as a continuous supplier to the French Pilot program positions the Company to be the major player after the Transitional Period,” said Long.
“This will involve us submitting a technical dossier that will adhere to upcoming specifications, expected to be released before the conclusion of the Pilot program.”
“Our previous experience in France enables us to streamline the evaluation process, given that our technical details are already known to the regulatory authorities, and that our products’ safety and efficacy have been conclusively demonstrated over the past few years.
“Importantly, the amendment specifies exclusive access to supplying the French market will be granted solely to European registered companies who have a partnership with a French Pharmaceutical Establishment.”
A €10 million (AUD $16.6 million) budget has been allocated for the supply of medicinal cannabis to existing pilot patients, estimated to be around 2,000 at the end of the pilot. The proposed wholesale pricing for oil products is set to be up to €0.136/mg CBD and up to €0.25/mg THC, with potential sales prices of $566 (€340) for the CBD50 and $247 (€148.50) for the Classic 1:20 products.
With a Danish entity fulfilling the necessary European Supply Authorisation requirements for France, LGP, along with distribution partners Intsel Chimos and Centre Lab, is well-positioned to leverage established relationships with patients, hospital prescribers, and pharmacy networks during and after the transitional phase.
As the French market for medicinal cannabis evolves, Little Green Pharma is poised to emerge as a major player, leveraging its experience and strategic partnerships to capitalise on the growing demand in one of Europe’s most promising medical cannabis markets.
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