Little Green Pharma Ltd (ASX: LGP) has been awarded a commercial tender to supply CBD50 Classic oils to the highly-regarded French medicinal cannabis trial.
This is currently the largest Government-led trial in Europe and the only available pathway for the supply of medicinal cannabis in France.
The supply price is $77 (€442) per bottle with the total award valued at up to $1.6 million (€1.0 million) subject to Trial demand, which the Company believes will be generated within the remaining March 2024 Trial period.
Award joins recent tender success
The award joins LGP’s recent tender success to supply its CBD1:20 Classic oils to the Trial3 and means LGP will be the primary provider of CBD products to the Trial until its conclusion in March 2024. The prescribing requirements suggest ~85% of the expected 3,000 participants will be prescribed an LGP CBD product, making LGP the most well-known brand by Trial prescribers and patients.
The company’s management said LGP is very pleased to be selected by the French Government to continue supplying its GMP medicinal cannabis oil products to its French patients, many of whom it has supplied since the beginning of the Trial.
“The Trial has already shown consistently beneficial clinical outcomes over its first two years, with 91% of the current 1,643 active patients reporting positive results and various expert reports on the Trial interim results all providing positive feedback.”
Significant avenue for market growth
France remains one of the largest potential medicinal cannabis markets in Europe, and the world. With the second largest population in the EU (65 million) and a Total Addressable Market of $5.6 billion and the company is optimistic that a future French medicinal cannabis market is one of the most prospective cannabis opportunities available globally.
LGP regards its participation in the Trial as a key first mover advantage in any such medicinal cannabis market, for a number of reasons:
- the company’s Trial participation gives it unique insight and influence over development of future medicinal cannabis statutory framework in France, including its reimbursement status
- the company is already a well-recognised and trusted brand in France, and at completion of the Trial, will have a three-year history of supplying LGP branded products to over 2,500 Trial participants via their associated prescribers
- Trial prescribers are now familiar in prescribing LGP products, and prescribers typically encourage the continuation of supply of existing medications to patients where these have produced desirable health outcomes
- LGP enjoys a long-term partnership with key Trial distributors, Intsel Chimos and Centre Lab, who provide LGP with the required distribution pathways, Trial and market intelligence, and in- country regulatory know-how and support; and
- the company has fostered excellent relationships with French health regulators and will be able to efficiently and quickly position itself, including through the establishment of in-country operations, to service any future French medicinal cannabis market model.
The company says it remains very buoyant about the potential of a future French medicinal cannabis industry and believes its success in the Trial continues to confirm the advantages of developing a robust, export-led sales strategy from its assets in Australia and Denmark.
