Medicinal cannabis company Althea Group (ASX: AGH) has inked a product supply and distribution agreement with Cannvalate, which is expected to underpin further rapid sales growth in Australia.
According to Althea, Melbourne-based Cannvalate boasts Australia’s largest network of medicinal cannabis prescribing clinics spanning all states.
Under the agreement, Cannvalate will become a non-exclusive distributor of Althea’s medicinal cannabis products in Australia to rapidly increase its network of existing prescribers, primary specialist doctors, and patient base.
Commenting on the arrangement, Althea chief executive officer Joshua Fegan described Cannvalate as an excellent partner for the distribution of its products.
“This agreement is expected to accelerate our sales growth further and is evidence of the rapidly growing market and validity of what we are doing in Australia,” he said.
Unlisted Cannvalate only received its licence to sell medicinal marijuana last year and already has a network of more than 1,000 doctors and 600 pharmacies.
Cannvalate-led prescriptions currently account for more than 30% of the Australian market, with the total number of monthly prescriptions increasing by over 800% in the last twelve months.
The company has already reviewed Althea’s product range outlining a strategic plan on how to target each of its products to the most appropriate specialists.
“We look forward to working with Althea and its team to ensure maximal uptake of its products in the Australian cannabis marketplace,” Cannvalate chief executive officer Dr Sud Agarwal said.
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