ASX-listed marijuana company THC Global Group has received a manufacturing licence for its Gold Coast botanicals extract plant, which is the largest such facility in the southern hemisphere.
THC Global says the Southport laboratory, which it bought last year from Danish drug giant LEO Pharma at the bargain price of $2.55 million, is the only facility capable of producing pharmaceutical ingredients in Australia at this scale.
Chief executive Ken Charteris says the manufacturing licence is the most significant to be granted in the Australian marijuana industry.
The company is now ready to produce active pharmaceutical ingredients “at globally significant volumes and at very competitive prices”.
It will initially produce more than 12,000kg of pharmaceutical isolates and extracts annually.
“The company also expects to be able to further process these extracts into finished medicines such as oils, tinctures and capsules where necessary,” THC said.
The product would be made available for Australian clinical and study and exported to Asia for use in clinical and study trials, THC said.
In May, Mr Charteris complained of “extraordinary delays” in receiving the permit from the Office of Drug Control but following its approval the company expects to begin commercial production in early 2020.
THC Global shares were up 3.5 cents, or 8.3 per cent, to 45.5 cents at 1159 AEST.