Slow day on the threads, but I thought I'd pass on some information from my conversations with Erlyn.
HL Pharma
In response to my query on the application of MMJ oral delivery products, I have been told that HL Pharma in association with MMJ have only sought licensing approval for their Gelpell products. I quote Erlyn "We are focusing on sophisticated pharmaceutical medicine formats for our products and at this time, we do not plan to produce tinctures and oils as we feel that the oral bioavailability of the actives is better with the Gelpell capsule format".
My response and I quote " I feel a standalone product such as Gelpell, would neither satisfy a large market need, nor cater for the masses that are currently used to tinctures prepared by “herbalists”. While I understand the nature of importing GMP, I am keenly aware that the market saturation and indeed uptake of the Gelpell, has been underwhelming. Consumer choice is paramount, and I feel that one marketable oral product is perhaps doing MMJ revenue hopes, a disservice. Surely with the credibility that surrounds Satipharm and its GMP, in conjunction with Fresh Therapeutics and HL Pharma, merits an investigation into the importation of Satipharm’s oils and extracts for commercialisation here in Australia?
They are unable to give any indication of timelines for the licensing processes.
Canigma
In regards to my query on Canigma, Erlyn stated "Canigma is no longer a core focus for the Company and whilst we still have an interest in this project, no additional resources have been committed by MMJ to advance this. Canigma, itself, are continuing to progress the project and it is them who we are awaiting an update from them in this regard".
My reply in kind, "When I investigated assorted delivery MC mechanisms, I felt that direct competition with a nasal delivery system was warranted. I was pleasantly surprised when I discovered more information on the MMJ backed Canigma system, as I felt it could potentially suit younger patients akin to a space chamber mechanism for asthma. As an investor, I am keenly aware of competitors in the market place, and I feel that any organisation small or large, must differentiate itself through complementary products. While MMJ may chase the recreational market in Canada as its short-medium term goal, I feel that to an extent, MMJ are keeping one eye closed in this regard. Coupled with notoriously slow legislative processes, the road to commercialisation will be a slow one, and ‘side’ revenue has up til now, been sub-standard. I guess I’m wondering what will carry MMJ’s flag until then? The promise of an as yet, unrealised market?
Further thoughts
The above should not be seen as 'down-ramping', it is posted in good faith, and as I've stated before, I like to be fully informed about the company and the products I have invested in. Hoping others feel the same.
I see Erlyns point with the Gelpell, and if the studies prove it as a superior product and the marketplace agrees, then I'll eat my words. I still worry about prohibitive pricing though, especially when Gelpell prices may not be able to compete with tinctures and oils sourced on the black market. Essentially, I'm more interested in near-term commercialisation to stave off future CR's by Harvest One, and the further diluting of MMJ's ownership.
Hopefully MMJ have not taken their eyes off their competitors, and I have further asked for information about the buccal cheek patch that differentiates itself from the CPH alternative.
In any case, notification of an approved importation license should see another charge in the SP, and I for one am keeping an eye on the HL Pharma website.
Go the 'green chips'.
MMJ Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
