Little Green Pharma wins CBD 50 tender

The Australian company Little Green Pharma (LGP), which already offers CBD:THC 20:1 oil as part of France’s medical cannabis pilot program, won the second contract to supply CBD 50 oil for the pilot.

Although the final amount of the tender has not been publicly disclosed, LGP will be able to supply up to 1 million units of its CBD50 product in accordance with the terms of the request for proposals.

Little Green Pharma had declined to bid on the first request for proposals launched by the Ministry of Health to extend the trial. The Ministry had promised a price of €14 per bottle, a price well below its manufacturing, shipping, and customs costs.

Despite the Alerts for patients and healthcare professionals for those involved in the trial, the lack of foresight on the part of the Directorate General for Health (DGS) had led to 2 CBD oil shortages, a product primarily dispensed to patients. The DGS then issued a second call for bids to fill the gaps in the system.

With this contract, LGP remains the leading supplier for the French trial; according to its figures, more than 851 of the 3,000 participants are receiving relief from the company’s cannabis-based medical products.

The purchase price for each bottle is set at 77 Australian dollars (47 euros), and the total value could reach up to 1 million euros, depending on demand. LGP expects this demand to be met by the end of the trial period in March 2024.

Over the past two years, the pilot program has consistently yielded positive results, 91% of the 1,643 active patients which have yielded positive results.

With the second-largest population in the European Union, France represents a major market for LGP, and the company views its participation in the trial as a valuable asset in light of a Inclusion of medical cannabis in general law in 2024.

For the past three years, LGP has been supplying its branded products to more than 2,500 trial participants. The company has also begun discussions with French health authorities to explore opportunities for future market expansion.

Following this announcement, LGP's stock rose by 7.891%.