Cannabis Australia: Medlab to fast-track medical marijuana human trials, raises $5.4M marijuana-based pain management therapy

By @ritwikroy1985 on
Medical Marijuana
A worker harvest buds of marijuana in a medicinal cannabis farm, approved for medical use and under the supervision of the government's agricultural service during the harvest season between March and April in the town of Quinamavida in Linares city, Chile March 24, 2016. Reuters/Juan Gonzalez

Medlab is all set to give cannabis Australia human trials a boost as it has launched a $5.36 million equity raising. The cash will be mainly used for accelerating a medicinal cannabis human trial program at a leading Australian oncology research hospital. The marijuana-based pain management therapy will combine two cannabis compounds THC (tetrahydrocannabinol) and CBD (cannabidiol).

Medlab’s shares last traded at 42 cents, way ahead of the year low of 16 cents. The 1-for-9 rights issue is at 30 cents a share, writes Business Insider Australia.

“We expect this accelerated program and new equipment will result in licensed products to market at least 12 months ahead of our current forecasts,” managing director Sean Hall said.

Preliminary results from Medlab’s work on depression and obesity were most-promising and so was their NanoCelle delivery system. The NSW government has approved Medlab Clinical for performing medicinal cannabis trials as a pain reliever. The company listed on the ASX a year ago. Sean Hall formed Medlab after selling off his family’s companies ioceuticals and Hall Drug Technologies to vitamin giant Blackmores in 2012.

In June, it was reported that Australian company MMJ PhytoTech Limited secured medicinal cannabis production licence in Canada. The company’s wholly-owned subsidiary, United Greeneries (UG), was approved by Health Canada (HC) as an authorised licence producer at its flagship Duncan facility under the Marihuana for Medical Purposes Regulations (MMPR).

“The granting of the Duncan MMPR license is a significant milestone for MMJ, as it underpins the evolution of our “Farm to Pharma” strategy. As the first Australian-based company to receive a Canadian production license, we are very encouraged by Health Canada’s endorsement of our facilities,” MMJ PhytoTech Limited’s Managing Director, Andreas Gedeon, said in a press release.

MMJ became the first Australian-based company to receive a Canadian medical cannabis cultivation licence. Now, it is among a select group of companies worldwide that can commercially cultivate medical marijuana in a federally-regulated system.