Creso Pharma Limited (ASX:CPH) (OTCMKTS:COPHF) (FRA:1X8) is set for the Therapeutic Goods Administration’s (TGA) final decision confirming an interim recommendation to down schedule the distribution of cannabidiol (CBD) products in Australia and this is expected in late December 2020.
If confirmed, this would allow Australian consumers to purchase CBD products over-the-counter (OTC) through pharmacies without the requirement of a prescription.
An interim decision, made on September 9, 2020, recommended CBD products be down scheduled from schedule 4 and classified as schedule 3 medicines in Australia.
"Potential new sales channel"
Creso non-executive chairman Adam Blumenthal said: “The potential down scheduling of CBD is a major development for the broader market and provides Creso Pharma with a number of opportunities and potential new sales channels.
“Australia has always been considered an important market in our growth strategy.
“Ahead of the TGA’s final decision, the board and management have been exploring initiatives which will allow us to capture a large market share in Australia and unlock value for our shareholders.”
“The company remains well capitalised and looks forward to providing ongoing updates on progress.”
Unlocks major market
The potential down scheduling of CBD products in Australia unlocks a major market for Creso Pharma’s CBD and hemp products.
It is estimated that this market is currently at more than $200 million per annum and growing.
Creso’s cannaQIX® 50 is being sold in Australia as a medicinal cannabis product under the ‘LozaCan’ brand via distribution partner ‘Burleigh Heads Cannabis’ (BHC).
It has also developed a wide range of CBD and hemp-oil products under the cannaQIX® brand, using its proprietary and innovative delivery technology, which it expects to sell in Australia following any favourable decision.
The cannaQIX® range is manufactured under Good Manufacturing Practice standards and provides consumers with a standardised formulation and precise dosage measurement.