New Zealand: the first company to obtain a license to produce medical cannabis

The company Hikurangi Cannabis Company, based on New Zealand's east coast in Ruatoria, is the first company to receive approval from the Ministry of Health to manufacture medical cannabis-based pharmaceuticals for clinical trials. This decision is part of national medical cannabis program with a new law due for second reading next month, which will set standards for the manufacture, import and supply of these products.

However, the first license of its kind was granted to a university. Medsafe,the medical regulation authority, has confirmed the information. The company applied last April, and on August 24 was granted a license to cultivate medical cannabis varieties and manufacture products from their harvests. For the time being, these products are intended for research purposes, but once approved, they will be marketed in New Zealand and beyond.

Medical cannabis made in New Zealand

We have a pharmacist on the team and medical researchers on the ready to do the tests«, said co-founder Manu Caddie. He explained that, for the moment, they have two products in the pipeline: an oral syringe to administer cannabis oil in the mouth, and products for arthritis and pain that could be applied dermally.

The company is aiming to produce to government standards from next year, and is making efficient, safe access its priority: «We know that many people suffer every day and would like to have access to a medical product they can trust, at a price they can afford. Indeed, foreign products tend to double in price before reaching New Zealand shores. Visit Sativex, for example, costs 1000$ per month. The Medicinal Cannabis Awareness New Zealand explains that «locally grown produce is likely to be much cheaper».

On this point, despite expecting growing interest from overseas companies, the company has stated that its priority is the New Zealand market. Foreign orders, such as last month's agreement with a Seattle-based company to supply 3,000 kg of medical cannabis products over 4 years for $160 million, are used primarily to finance the company and create new infrastructure that will make the drug affordable in New Zealand.

A local development initiative

The company was created through the participation and efforts of local community members, «without any help from the government», said Manu Caddie. «We are a group of farmers from the East Coast who organized themselves». The company has raised funds, approximately $3 million, via a crowdfunding platform. Over 3,000 people, including more than 1,500 local families, invested by buying shares in the company at a minimum of 50$. Thanks to the funds raised, the company has obtained the attention of the government and is negotiating the allocation of funds for product testing.

The initiative aims to boost the region's ailing economy by establishing an industry that creates value-added products: «To be able to implement our economic and community goals of building a pharmaceutical industry in Ruatoria is a major milestone. We're excited to be able to base this new industry in our community, a rural region that desperately needs new economic development opportunities. Without the strong local support (...) this would not have been possible,» said Manu Caddie.

He added that the initiative could potentially double household incomes in the area and provide employment opportunities, perhaps even attract back those who have left, or even attract skilled workers from other regions. For now, the group is fighting to ensure that the law does not include the fact that skilled workers with criminal records will be sidelined. The resulting development will create new infrastructure, homes and businesses. The next step for the company is to build greenhouses for cultivation and structures for extracting and transforming the raw material into medicines.