• Accusations of unethical behaviour and malpractice by medicinal cannabis businesses have made mainstream headlines in Australia
  
  
• Following a high-profile investigation, the pharmacist founder of a medicinal cannabis business has been banned from practice while two other doctors were suspended.
  
  
• Stronger enforcement from the Therapeutic Goods Administration (TGA) are anticipated in the wake of this reporting
  
  
• Comprehensive coverage can be found here:
  https://www.abc.net.au/news/2024-10-11/medicinal-cannabis-company-investigated-by-authorities/104449400

• As a significant business operating in the Australian medicinal cannabis landscape, LGP welcomes greater scrutiny on industry practice as well as stronger regulatory enforcement.
  
  
• The reported instances of malpractice are very concerning and LGP firmly believe shining a light on poor behaviours and holding participants to account is necessary for the survival of the Australian medicinal cannabis industry
  
  
• LGP also supports observations from Martin Lane, co-founder of industry publication Cannabiz, that while there is significant evidence in favour of medicinal cannabis’s ability to improve quality of life there is still work required to persuade a large population of the medical community, and poor regulatory and product compliance complicates this task .

Australian driving law reforms

• In a legal overhaul, magistrates in Victora will have the power to use discretion in sentencing drivers testing positive for THC
  
  
• Drivers with a valid prescription that test positive for trace amounts of the drug may not automatically lose their licence
  https://www.theguardian.com/australia-news/2024/nov/01/victoria-medicinal-cannabis-law-drivers 
  
  
• Concurrently, recommendations from South Australia’s Joint Committee on the Legalisation of Medicinal Cannabis is calling for easing of the state’s Road Traffic Act
  
  
• The Committee is calling for citizens to be permitted to drive while testing positive for THC as long as they are using the product in accordance with their prescription, have a zero blood alcohol concentration, and are not impaired
  
  
• Acceptance of the recommendation would see South Australia follow similar guidelines as Tasmania
  https://www.cannabiz.com.au/south-australia-could-follow-tasmanias-lead-on-drug-driving-reform/

• 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

• Total medicinal cannabis sales in Germany are expected to reach €420 million this year, rising above €1 billion in 2028
  
  
• The volume of medicinal cannabis sold in pharmacies increased by about 30% in Q3 2023 compared with Q3 2022
  
  
• This buoyant sales activity is thought to bs strongly supported by the passing of the CanG bill as well as the associated MedCanG Act which legalised adult use of the medicine
  
  
• Under the legislation, German doctors are able to prescribe medicinal cannabis for any condition where it is deemed likely to significantly help the patient
  https://www.cannabiz.com.au/german-medical-market-tipped-to-top-e1-billion-in-next-four-years/

• The strong sales activity validates LGP’s long-held strategic view that the European market – and in particular Germany – represent key destinations for medicinal cannabis.
  
  
• With a major facility in the neighbouring country of Denmark as well as a strong and enduring commitment to the market, LGP is well positioned to take advantage of this uplift in sales

• President-elect Trump has selected Robert F Kennedy Jr as his choice for secretary of the Department of Health and Human Services (HHS)
  
  
• Mr Kennedy has frequently called for an overhaul of the healthcare system and expressed support for both cannabis and psychedelic treatments
  
  
• While there is limited detail on the mechanisms by which the HHS could enact change, the Department remains an exceptionally powerful entity which in certain circumstances has the authority to override other agencies such as the FDA on approvals

• While there remains considerable uncertainty about the regulatory mechanisms to enact wholesale transformation of the USA’s cannabis and psychedelics legislation, it is clear that the Trump administration is supportive of change. This mandate to alter established norms within government departments ensures new medicines will remain front of mind for the American public
  
  
• Changes in the US are also likely to be observed in other nations such as Australia. This ensures LGP and its leading psychedelics subsidiary Reset Mind Sciences is well placed for any potential shift towards a more liberal regulatory environment

Health Canada’s Cannabis Survey shows significant decline in black market purchases

• Health Canada’s 2024 Canadian Cannabis Survey has shown that the vast majority of consumers now obtain cannabis legally, with only 3% reporting purchase from illicit sources and down from 16% in 2019
  
  
• Meanwhile, daily or near-daily use rates by adults and youth have remained steady following legalisation, with rates of driving after consuming cannabis also having fallen since 2019.

LGP Insights

• The 2024 Canadian Cannabis Survey underscores the effectiveness of Canada's legalisation framework in achieving key public health and safety objectives
  
  
• The substantial shift from illicit to legal cannabis markets enhances consumer safety, contributes economically, and diminishes the influence of the black market
  
  
• Moreover, the stability of youth usage rates post-legalisation indicates that current regulatory measures are effective at mitigating underage consumption
  
  
• The results showing the increase in the average age of youths first trying cannabis suggests more liberal laws may actually reduce the incentive to experiment with cannabis