Foliumed has delivered the first of two sizable batches of medicinal cannabis produced at its cultivation operation in Colombia to an Australian buyer whose identity has not been disclosed.
The company, which operates a manufacturing facility in Germany as well, announced that the shipment contains pharmaceutical-grade cannabis components with a shelf life of 18 to 24 months.
Founder and CEO Oliver Zügel said: "This is the first of two shipments which allow our customer to supply about 5% of Australian demand at less than half the cost compared to local production."
According to Zügel, high salaries and electricity costs in Australia have made it difficult for the country's medicinal cannabis producers to develop cost-effective products.
"This has become a big issue for patients who pay more than A$200 for a monthly dose, available only under prescription. This limits access to the well heeled or those willing to take the risk [and] buy more cheaply from the black market."
According to him, the shipment's pricing structure will lower raw material expenses from 40-50% of the final retail price to approximately 10%, a reduction that could be transferred to patients.
Diego Felipe Navarro, co-founder and CEO for Latin America operations, noted that Colombia's climate enables the company to maintain low cultivation costs while employing organic methods and minimizing environmental impact.
He added: "Our teams in Colombia and Germany have worked for over a year with our Australian customer, the health authorities and the Colombian government to ensure we adhere to the strict quality standards imposed by the Therapeutic Goods Administration (TGA)."
The TGA recently announced new regulations governing the quality of imported medicinal cannabis meaning overseas firms will soon be held to the same standards as Australian manufacturers, a move welcomed by Foliumed.
Zügel said: "Our German operations are EU-GMP certified, [so] we offer Australian importers a full range of solutions, from ingredients to finished product, compliant with the new regulations."
He advised businesses seeking to build new sourcing arrangements in response to the TGA's regulatory shift to begin immediately.
"Reconfiguring your supply chain should be high on the agenda," he said. "Whether you're importing raw ingredients or sourcing finished EU-GMP product, it will take a year no matter what."
