Wellnex Life has outlined the potential of the over-the-counter CBD market while cautioning that companies could face a fierce contest for pharmacy shelf space if products begin receiving Therapeutic Goods Administration registration.
Through its joint venture with OneLife Botanicals, Wellnex is working to develop a low-dose soft-gel capsule aimed at treating pain.
The company has set out to be "one of the first companies to offer an over-the-counter medical cannabis product in Australia".
At an investor webinar, chief strategy officer Zack Bozinovski suggested the domestic OTC market could be worth "billions" within two to five years, depending on which products reach shelves and how they are priced.
"Talking to pharmacies, there's a lot of excitement and interest in the launch of S3," he said. "The potential of the market is massive."
He anticipated an early wave of enthusiasm that would cool before demand "really taking off" as consumer confidence grows over time.
While acknowledging that price could become a barrier "at some point in time", he suggested that shoppers will be willing to pay a "premium price for good pain relief".
Bozinovski also flagged an upcoming contest to secure product placement behind the pharmacy counter where consumers can see it.
"The reality is, there is not much shelf space behind the counter, it's very limited," he told investors. "The space afforded to cannabis will be two or three branded products so our intention as part of our branding exercise is to launch our own brand… and be one of the first into the market.
"Wellnex Life has numerous relationships in the Australian market and it's fair to say that behind the scenes we have ongoing discussions to ensure that when we do launch, our partners are aware we are going to launch."
Bozinovski added that Wellnex may consider co-branded ventures with existing partners, though he ruled out producing a "generic or private-label cannabis for other people".
"Ideally for us it's a branded play. It's all around our brands being behind the counter. The jigsaw puzzle is coming together… to hopefully, some time in late 2023, have our S3 approval."
Wellnex has prioritised soft gels as its preferred dosage format, with plans to deliver the maximum allowable 150mg of CBD per day across three capsules.
"We'll be targeting pain indications from headache to joint pain, backache to toothache," general manager Chris Kominatos said. "We have a lot of experience in the analgesic space and have gone through S3 registration before with the regulator, and been able to successfully navigate that pathway, so this is repetition really."
Wellnex's earlier S3 work included developing a liquid gel paracetamol with GSK. When asked whether a comparable arrangement might occur with cannabis, Bozinovski said it was essential for Wellnex to "benefit primarily at the initial launch stage" given the scale of its investment in the product.
"I don't see us doing any joint venture in the first two or three years," he said. "What's going to be important is that we maximise our brand launches in the cannabis space before we look at supporting or manufacturing with other partners in the market. "
Cann Group has already signed an exploratory agreement with GSK covering the sale and distribution of a potential S3 product.
Earlier in the briefing, Bozinovski said the OTC product will "unlock potential" for consumers by removing the requirement for a prescription. Even so, with 82% of SAS-B approvals covering schedule 8 medicine, the great majority of current patients will still need one.
