Medicinal cannabis will be grown and turned into medicines in SA by the end of the year
It’s been a long road for Australians to get access to medicinal cannabis, but Adelaide firm BBS Pharmaceuticals says it now presents a big business opportunity for the state.
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Adelaide-based medicinal cannabis company BBS Pharmaceuticals is gearing up for first production of cannabis and medicinal products later this year, with the construction of its facility in regional South Australia under way.
The company, which has flown under the radar while putting in place the various regulatory measures needed to operate in the medicinal cannabis sector, said once it was complete, the regional facility would provide 40 ongoing jobs, plus another 15 management and support positions in the first year.
Executive chairman George Vanco said the company had designed its growing facility to be carbon neutral, powered by solar, wind and battery power, and it was also designed to be scalable as the company grew.
“BBS has both cultivation and manufacturing licenses granted by the Federal Office of Drug Control,’’ Mr Vanco said.
“As such it is a vertically-integrated pharmaceutical company that undertakes the entire process to produce medical cannabis products.
“It produces its own seeds from stable strains, it produces its own seedlings, its cultivates its own plants in a climate-controlled facility to ensure maximum hygiene and optimal growing conditions for the plants.
“It harvests the plants, dries them and either supplies biomass to other manufacturers for extraction or uses the biomass to make cannabis-derived pharmaceutical products for both the Australian market and also for export.’’
Mr Vanco said the recent passage of the Export Control Legislation Amendment (Certification of Narcotic Exports) Bill 2020, was a step forward for the industry, as it would allow the export of medical-grade cannabis.
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While Australia is currently a net importer of medicinal cannabis, Mr Vanco said that was expected to change.
“We expect that to change over the next year or so as Australia’s infrastructure for the growing of medical cannabis grows and it capitalises on its clean and green agricultural reputation,’’ he said.
BBS itself does not import any raw materials from overseas for production of medicinal cannabis products.
“We are contracted to sell biomass to other manufacturers both in Australia and through exports,’’ Mr Vanco said.
“Pharmaceutical products will follow. We are also working through our advisers to obtain all the necessary checks and balances through the Therapeutic Goods Administration before release to the Australian public.’’
As well as jobs in administration and cultivation, BBS expects to create initially eight high-skilled biotechnology jobs. The location of the new facility cannot be divulged due to regulatory constraints.
Mr Vanco said COVID-19 had caused some delays to construction, however it remained “broadly on schedule’'.
Another Adelaide-based company, LeafCann, is aiming to build a $50 million cannabis cultivation and manufacturing plant in Adelaide’s south, but told The Advertiser in May that its plans had been delayed by six months by the COVID-19 pandemic.