Victorian cannabis company Murray Meds has announced a new supply deal that will see the company supplying medical cannabis oil in the UK and parts of Europe.
Murray Meds is one of Australia’s largest medical cannabis cultivators, growing medical cannabis on the north-west shores of the Murray River. They were acquired by ASX-listed company ECS Botanics, as part of a $1 million acquisition announced in January this year.
Now, Murray Meds has signed a three-year supply deal with London-based pharmaceutical distribution firm The Armour Group (TAG).
The deal will see Murray Meds initially supplying cannabis oil for use during clinical trials in the UK. Later, Murray Meds’ cannabis oil is expected to reach patients in Germany, as TAG has announced plans to complete the country’s product registration process. The oil will be sold in German pharmacies under the TAG brand.
According to ECS Botanics Managing Director Alex Keach, the supply deal provides the company with a strong base for further expansion into Europe.
TAG has a strong eCommerce platform which it will leverage to distribute the products initially in Germany, followed by the UK and other European countries.
The supply deal includes minimum order volumes that are expected to net Murray Meds a minimum of $500,000 in revenue. However, the company expects that figure to grow substantially in the next 12 months.
Murray Meds will be the fourth Australian company to enter the German medical cannabis market, after ANTG, Cannatrek and the Althea Group. The company has a TGA Good Manufacturing Practice (GMP) license to produce cannabis flower, oils and tinctures.
Murray Meds first shipment of cannabis oil is expected to reach the UK in the second quarter of the 2021 calendar year.
ECS Botanics is poised to become a leading player in the growing number of ASX-listed cannabis stocks.