Canopy Growth to Get Extract Supply from MediPharm Labs

Canopy Growth and MediPharm Labs

On November 29, Canopy Growth (WEED) entered an 18-month supply agreement with MediPharm Labs, in which the latter will supply up to 900 kilograms of cannabis extract to Canopy Growth and its subsidiaries for sale. Initially, Canopy Growth committed to a minimum purchase of 450 kilograms, which could later be extended to another 450 kilograms.

Canopy Growth to Get Extract Supply from MediPharm Labs

Canopy developing capacity internally

While Canopy Growth sources extract from MediPharm, it is also developing the capacity internally to be able to fulfill its demand for the product. However, the current need of the hour is far greater than what Canopy Growth can produce internally. The joint press release stated, “This agreement will establish an early-mover advantage for both Companies to meet an immediate and unmet need across the country for value-add products such as Softgels.”

Agreements with other players

As the demand remains higher than what companies can provide, these partnerships may aid in helping companies establish their presence early in the markets. MediPharm also has agreements with other licensed producers (HMMJ) such as Cronos Group (CRON), Supreme Cannabis (SPRWF), Emerald Health (EMHTF), Newstrike Brands, and others.

For ongoing updates on the cannabis industry, visit Market Realist’s Healthcare sector page.