Marijuana Business Magazine - May-June 2018

S ince going online in October 2016, Australia’s medical marijuana market has grown slowly, primarily because of heavy government regulations that have undermined patient access and hampered MMJ businesses hoping to start there. Consequently, Australia has issued only 14 cultivation and production licenses, eight manufacturing licenses and eight research licenses. But many of these businesses are not yet operational and are awaiting clinical trials and build-outs. Also, Australia requires that medical cannabis be sold through pharmacies, eliminating the retail option for entrepreneurs. But Australia’s government plans to allow medical cannabis exports, a development that would dramatically increase the value of the country’s cultivation and manufactur- ing licenses. Cultivation and manufacturing companies able to win licenses will have access to a significant domestic patient market (once patient access issues are resolved) as well as a growing number of foreign medical marijuana markets that allow imported cannabis. So, how to break in? Several Canadian players, and even some from the United States, have done so through joint ventures – or have partnered with or invested in Australian cannabis businesses: • Denver-based Dixie Brands, for example, partnered with Australia-based Cann Group to bring CBD and medical marijuana products to Australia, while Seattle-based Privateer Holdings – through its British Columbia-based grower Tilray – has a license in Aus- tralia but remains in clinical trials. • Other licensed Australian growers with foreign ties include Bedrocan Australia, which is linked to the Dutch company Bedrocan BV, and AusCann, which is collaborating with Canopy Growth of Ontario, Canada. • Besides Canopy, other Cana- dian companies that already have deployed millions of dollars in Australia include Cronos Group, Aphria, Aurora, PUF Ventures and MedReleaf. • Plant-touching opportunities also will lead to ancillary opportunities such as cultivation and manufacturing equipment and consulting, legal and shipping expertise. AUSTRALIA Industry: Medical Marijuana Australia A GOING GL BAL 58 • Marijuana Business Magazine • May-June 2018