New York OKs five new medical cannabis businesses

New York authorized five more companies to manufacture and dispense medical marijuana in the state, which has the potential to significantly expand an MMJ industry that has struggled.

The five companies approved Tuesday by the Department of Health and the counties they’ll serve:

  • Citiva Medical, Orange
  • Fiorello Pharmaceuticals, Schenectady
  • New York Canna, Onondaga
  • PalliaTech NY, Ulster
  • Valley Agriceuticals, Orange

The five new companies bring to 10 the number of medical marijuana businesses in New York, which has more than 25,000 certified patients and 1,000 registered practitioners, according to the health department.

State law permits each company to open as many as four dispensaries, which means New York could eventually be home to 40 storefronts, the Albany Times Union reported.

Four of the existing five companies – which have been operating since the MMJ program’s launch in January 2016 – filed a lawsuit to prevent the state from awarding the additional licenses.

– Associated Press and Marijuana Business Daily

4 comments on “New York OKs five new medical cannabis businesses
  1. Lawrence Goodwin on

    Good news, brought to readers by the good people of Marijuana Business Daily. It’s about darned time New York started shedding its fears of female cannabis flowers and the medical miracles they can yield. When paired with the state’s increasing support for cannabis hemp farming (I literally just spoke today to the NYS Commissioner of Agriculture and Markets, Richard Ball, who confirmed to me that roughly 2,000 acres of hemp are now being tended by farmers), the future is finally looking a little brighter and greener in the Empire State.

    Reply
  2. Ned Frisius on

    This NY State level action is an excellent example of the incredible vulnerability faced when investing in “companies that touch the plant” during this period of rapidly developing and evolving laws & policies. Imagine the potentially devastating financial impacts resulting from halving of the expected market base (i.e. 10 suppliers versus only 5). The original NY licensed operators now not only face the expenses of funding law suits to defend against the regulation change that doubles the number of competing businesses (i.e. potentially halving their business’ opportunity), but they also remain obligated to pay for existing contracts (involving equipment, rented property, and the like) that were entered into based upon a business competition expectation that is now greatly reduces. The potentially devastating financial impact of this type of evolving policy bring to mind two sayings (1) “Sometimes slower is faster”, and (2) “Be careful what you wish for”.

    Reply
    • Lawrence Goodwin on

      There are nearly 20 million people in New York state, Ned. Official records show a consistent annual level of roughly 50,000 citizens who suffer from cancer diagnoses alone (as the article makes clear, NY state currently has about half that number of total patients registered). Ten growers and 40 dispensaries are not nearly enough in a potentially giant state market for medical cannabis products. The ladies of Etain and other companies suing the state are wasting their precious time and resources. Instead they should be focusing exclusively on how to expand their own patient pools, which in turn would help lower their astronomical prices. What’s done is done, and this move by NY state to “improve” the Compassionate Care Act program is more than welcome.

      Reply
  3. Ned Frisius on

    Lawrence, your shared insight strongly supports the likely need in NY for far more than 10 licensees. After all that number of licensees under current regulations represent only 40 potential storefronts to provide medical cannabis to the massive population base.

    My previous comment is not intended to address these real world patient needs, but rather to address some of the substantial financial risks associated with investment in the early stages of “legalized” cannabis production. As the NY law change demonstrates, in the current, rapidly evolving regulatory landscape involving “legal cannabis”, the best of business plans and financial projections can be seriously upended by changes in state & local regulations (not to mention the potential impact of a multitude of possible actions by various federal agencies).

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *