AHPRA's taskforce targets medicinal cannabis clinics in Australia

• AHPRA has established the Rapid Regulatory Response Unit (RRRU) to investigate unethical prescribing and business models in healthcare, with a focus on medicinal cannabis.
• The taskforce will scrutinise high-prescription volume models, especially those using telemedicine to offer potentially excessive cannabis prescriptions.
• This increased oversight aims to ensure patient safety and ethical practices, signalling a broader move towards tightening regulation of medicinal cannabis clinics in Australia.
• https://www.cannabiz.com.au/medicinal-cannabis-in-the-crosshairs-as-ahpra-sets-up-rapid-response-taskforce/

• The trend toward stricter regulatory scrutiny in both the UK and Australia highlights the importance of ethical prescribing practices in maintaining industry credibility. LGP’s commitment to compliance and patient safety positions it to benefit from this shift

NSW premier to address medicinal cannabis and driving laws

• NSW Premier Chris Minns announced that the state’s drug summit will discuss the issue of driving laws for medicinal cannabis patients
• Patients who use medicinal cannabis are currently prohibited from driving if THC is detected, even if they are not impaired
• The summit may lead to laws that distinguish between detection and impairment, allowing patients to drive while using medicinal cannabis responsibly
• https://www.cannabiz.com.au/nsw-premier-expects-driving-laws-to-be-addressed-at-drug-summit/

• Potential changes to driving laws would significantly improve patient quality of life and increase the appeal of medicinal cannabis treatments, resulting in a potential uptick in further domestic market growth
• LGP is well-positioned to capitalise on the likely increase in patient adoption that would result from these reforms

German market surges post legalisation

• Germany's medical cannabis market experienced a significant boost in Q2 2024, with imports reaching 11,706 kilograms of cannabis flower representing a 44% increase compared to the 8,143 kilograms imported in Q1
• This growth is even more impressive when looking at year-on-year data, showing a 51% increase from the 7,758 kilograms in Q2 2023
• This surge reflects the country’s expanding patient base and easing regulatory framework following the reclassification of cannabis from the Narcotics List in April 2024 
• https://www.bfarm.de/DE/Bundesopiumstelle/_FAQ/Medizinisches-Cannabis/_node.html

LGP insights:

• This rapid growth presents exciting opportunities for LGP and its Danish production facility as demand continues to rise in the German market, and underscores the reliance on international suppliers like LGP to meet Germany’s burgeoning medical cannabis needs
• LGP's commitment to European markets, including Germany, aligns with this growing trend, and provides a solid foundation for revenue growth in the region

Ukraine legalises medicinal cannabis but excludes PTSD

• Ukraine’s new medical cannabis law officially came into effect in August 2024, allowing for cultivation, processing, and distribution under strict licensing arrangements
• An estimated 6 million Ukrainians could benefit from medical cannabis, particularly those suffering from combat-related PTSD
• Despite significant demand, Post-Traumatic Stress Disorder (PTSD) has not yet been included in the list of qualifying conditions, although efforts are underway to ensure broader access
• https://cannabishealthnews.co.uk/2024/08/27/ukraine-legalises-medical-cannabis-but-are-ptsd-patients-being-left-behind/

LGP insights:

• Ukraine’s legalisation of medicinal cannabis opens a new, potentially large market with millions of potential patients. While the exclusion of PTSD is a limitation, the broader regulatory framework creates opportunities for international suppliers, including LGP, as Ukraine’s domestic supply is not expected to enter the market until 2028

UK patient numbers and consumption surge

• The UK is driving significant growth in Europe’s medicinal cannabis market
• 63,000 patients are expected to generate €240m (A$391m) in sales by the end of 2024
• UK patients consume roughly €3,811 (A$6,215) worth of medicinal cannabis per year—144% higher than in Germany
• Contrasting with Germany’s public reimbursement system, the private, self-paid nature of the UK market leads to higher prescription volumes with lower average prices and supply-chain restrictions meaning patients typically opt for volume over frequency
• https://www.cannabiz.com.au/uk-patient-numbers-demand-and-consumption-surge-to-all-time-high/

LGP insights:

• The rapid expansion of the UK market presents significant opportunities for LGP, including through its existing channels
• However, alongside this growth, the UK’s medicinal cannabis industry faces increased regulatory scrutiny, particularly around prescribing practices (see article below). As patient numbers rise and regulators push for higher standards, there’s an opportunity for compliant operators like LGP to capture a larger share of the market

New UK government and the need for regulatory improvements

• The Labour Party is expected to maintain a cautious stance on cannabis policy following its return to power
• The Care Quality Commission (CQC) has flagged concerns about the UK’s medicinal cannabis prescribing practices, noting a 118% increase in prescriptions of unlicensed cannabis-based medicines between 2021 and 2023
• Issues include excessive monthly dosage prescriptions and clinics catering to a “pseudo-recreational” market, leading experts to urge clinics to follow best practice guidelines, including THC caps and dosage limits
• Experts believe the UK medicinal cannabis sector is at a critical point, with increasing patient numbers likely to drive more intense regulatory oversight in the near future
• https://cannabishealthnews.co.uk/2024/07/09/a-new-government-and-the-potential-for-change-in-uk-cannabis/
• https://cannabishealthnews.co.uk/2024/08/13/uk-cannabis-clinics-urged-to-clean-up-concerning-prescribing-practices/

LGP insights:

• The UK’s medicinal cannabis industry is undergoing a significant regulatory shift, with growing concerns about some clinics operating outside best practice guidelines. Similar to the Australian market, where the Australian Health Practitioner Regulation Agency (AHPRA) has launched a taskforce to monitor prescribing practices, the UK is moving towards stricter regulation
• This trend suggests a global move toward tighter compliance, providing LGP with an opportunity to differentiate itself as a trusted, ethical operator in these evolving markets

Cannabis use surpasses alcohol in the USA

• Cannabis consumption has surpassed alcohol in the US, with 17.7 million people using cannabis daily or almost daily in 2022
• Contrary to concerns, legalisation has not increased youth cannabis use, and cannabis is increasingly being used to reduce alcohol consumption in harm reduction programs
• This trend signals broader acceptance of cannabis in mainstream society
• https://cannareporter.eu/en/2024/09/03/US-legalization-did-not-increase-cannabis-use-but-reduced-alcohol-consumption-and-surpassed-the/

LGP insights

• The increasing mainstream acceptance of cannabis, particularly as a substitute for alcohol, creates new opportunities for LGP in global markets. As societal attitudes toward cannabis continue to shift, we can expect continued growth in demand for high-quality medicinal product