A FIVE-YEAR exclusive pharmaceutical distribution agreement has been signed between South West based Little Green Phrarma (LGP) and Medezin for the distribution of cannabis medicines into Poland.
Medezin is a subsidiary of Pelion SA - the largest operator in the Polish and Lithuanian healthcare sector - and is now the exclusive partner for the distribution of LGP's medicinal cannabis oil and high tetrahydrocannabinol (THC) flower products in Poland.
Medezin is targeting the sale of products equivalent to at least 20 per cent of the Polish medicinal cannabis oil market and at least 10pc of the Polish high-THC medicinal cannabis flower Market.
LGP managing director Fleta Solomon said their distribution agreement with Medezin reflects the company's strategic ambition to acquire and maintain a substantial share of the total addressable market in each jurisdiction it supplies.
"We are very pleased to have partnered with Medezin, a highly experienced and large-scale pharmaceutical distributor servicing the Polish market, to help us achieve this goal," Ms Solomon said
"The financial value of the agreement will be contingent upon the final number of orders under the agreement, which in turn are subject to the minimum order requirement and the price of the products for LGP will be determined by the market at the time of sale.
"Given the variable nature of the number of units likely to be sold under the agreement, the floating calculation of the minimum quota and variable pricing arrangements, LGP is unable to provide further guidance on the financial impact of the agreement but will provide updates on the value of the agreement on an ongoing basis as part of its quarterly reporting obligations."
The agreement is for a term of five years beginning on the date of grant of the first marketing authorisation and will automatically renew for successive one-year periods unless terminated.
The parties have already substantially progressed the first marketing authorisation dossier for LGP's medicinal cannabis flower product.
Ms Solon said typically, Polish marketing authorisations require 210 days for assessment and grant.
"Medezin's distribution exclusivity is conditional upon it purchasing a minimum quota of products," she said
"In each case, the minimum quota is calculated annually in the relevant market for the previous 12 months of sales as collected and reported by the Polish medicines regulator.
"Medezin may only terminate the agreement due to LGP's material default or if the safety of the products is disputed by the Polish regulators."
Poland has a population of about 38 million, making it the fifth largest country in the European Union.
All doctors are eligible to prescribe medicinal cannabis in Poland and there is no definitive list of health conditions that can be prescribed.
The Polish market relies solely on imported cannabis medicines, with medicinal cannabis flower products retailing at between 650-700 Polish zloty, or $226 to $244 for 10 grams.