Yes, the TGA is reversing the supply gap regulatory amendment which allowed non-GMP medicinal cannabis to be imported. This is on track to commence this month with a transition period which will likely be 12 months. It's a big plus for companies like ECS that already manufacture low-cost GMP grade products for the B2B space (through their Victorian operations). The expectation is these companies will start sourcing product from ECS.
Companies will still be able to source low-cost cannabis from overseas and refine it as you say, but if there is a local operator that can produce it for the same cost (or lower) than what they are able to grow it for in Columbia then there is less risk buying it domestically. Every country has its challenges, ECS has tackled the biggest one in Australia (prohibitive power costs) via outdoor grows and use of solar and regenerative agricultural practices. The climate in north-west Victoria is perfect for THC (warm with low humidity) and the climate in Tassie is perfect for CBD.
I believe there will also be a new source of demand for cannabis from those companies using high cost indoor and expensive glasshouses to grow their own supply to manufacture products. If a company is producing a product then I would expect them to manage all of the costs associated with producing that product. A large cost will be the raw ingredients and if you can source these from an external company (ECS) for much cheaper than you are able to grow it yourself then why wouldn't you?
The product produced by Foliumed and grown by Clever Leaves is already GMP. Other companies may choose to follow suit, but it's not a cheap practice and will take time to meet the GMP requirements as they will most likely have to make significant changes to the layout of their manufacturing facilities, equipment and processes.
ECS Price at posting:
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