Little Green Pharma (ASX LGP) is well placed to benefit significantly from France’s potential €4 billion (A$6.3 billion) medicinal cannabis market after winning a tender to supply medicinal cannabis oils for a national trial in the country.
Shares in the WA-based vertically integrated medicinal cannabis business shot as much as 16% higher on Wednesday to an intraday high of 67c on news of its appointment as a primary medicinal cannabis oil manufacturer for national French medicinal cannabis trial.
The trial is in partnership with Intsel Chimos, a leading French pharmaceutical distributor, and is intended to test the efficacy, safety, and quality of medicinal cannabis medicines for the French public and plans to recruit up to 3,000 patients over its duration.
If successful, the trial is anticipated to catalyse the legalisation of medicinal cannabis in France, which is estimated to have a market value of €4 billion at maturity.
Importantly for LGP, the trial will provide the company with a significant first mover advantage in the event medicinal cannabis is legalised in France. First-mover advantage is likely to yield significant benefits, including heighted brand-recognition and sales advantages in newly-forming pharmaceutical markets.
LGP Managing Director Fleta Solomon said the tender win was strong evidence of LGP successfully implementing its export-led global sales strategy and demonstrated the benefits of Australian Good Manufacture Practices (“GMP”) quality manufacturing in global pharmaceutical markets.
We believe the trial will demonstrate the Partnership’s credibility and reliability to the French medical community, giving both companies a significant competitive advantage once medicinal cannabis is legalised in France,” Ms Solomon said.
LGP’s partner in the trial, Intsel Chimos, is a French pharmaceutical company and recognised hospital partner with a track record of more than 50 years in the space and specialising in the importation and distribution of medicines (including narcotics) to French hospitals and dispensaries.
Under the partnership, LGP will manufacture and supply its medicines into France while Intsel Chimos will undertake batch-release, distribution, medical information, and pharmacovigilance obligations.
Shares in LGP were trading at 63.5c, up 9.5%, on Wednesday at 12:15pm AEDT.