Medicox Decides Strategic Equity Investment in Australian Cannabis Cultivation Company 'Greenfarmers'

[Asia Economy Reporter Jang Hyowon] Medicox announced on the 25th that it has decided to invest in the Australian cannabis cultivation specialist company ‘Green Farmers’. Following the exclusive import contract for cannabis raw materials with ‘Green Farmers’ in June to expand the infrastructure for medical cannabis business, the company made a strategic investment to revitalize the cannabis business.

‘Green Farmers’, in which Medicox invested, is a cannabis cultivation specialist company with the largest cultivation volume and area in Australia. Recently, it acquired related companies and secured ownership of over 800 cultivation strains necessary for cannabis clinical trial research and pharmaceutical manufacturing.

Accordingly, Medicox stated that it now possesses the 99.9% cannabidiol (CBD) strain essential for the domestic market among the strains owned by ‘Green Farmers’. It explained that this lays the foundation to secure not only exclusive rights in Korea for specific dominant strains but also global exclusive rights in line with the development speed and sales volume of the Korean medical cannabis market in the future.

In August, the government announced 100 major regulatory innovation tasks for food and drug, including allowing the manufacture and import of cannabis component pharmaceuticals. With the path opened for manufacturing and importing pharmaceuticals containing cannabis components, movements in the pharmaceutical and bio industries to secure market dominance are accelerating.

CBD oil has been reported to be effective not only for pediatric and adult epilepsy but also for brain diseases such as autism spectrum disorder children, Alzheimer’s, and dementia based on overseas clinical data. Currently, health insurance is applied for pediatric epilepsy patients in Korea, and the prescription scale of CBD oil reaches 400 billion KRW. Including the non-reimbursed market such as adult epilepsy, the market size is expected to grow further.

According to a report titled ‘Domestic and International Regulatory Trends on Industrial Use of Cannabis’ released by the Korea Bio Association in April, the medical cannabis market is expected to grow at an average annual rate of 22.1%, reaching 51 trillion KRW by 2024.

Odaihwan, CEO of Medicox, said, “Based on global market know-how, we are fully prepared to produce refined medical CBD oil domestically,” and added, “We will do our best to ensure that once domestic regulations are eased, the Ministry of Food and Drug Safety’s approval procedures proceed swiftly so that domestic supply can be rapidly carried out.”

This content was produced with the assistance of AI translation services.