WeedMD hails Shoppers Drug Mart's cannabis production licence following supply deal

WeedMD (CVE:WMD) has reached another pivotal milestone as it revealed that Shoppers Drug Mart (TSE:L), with which it has a supply deal,  had  secured a cannabis production licence from Health Canada.

In June this year, WeedMD announced it had struck an agreement to become a medical cannabis supplier to the firm, which is Canada’s largest pharmacy chain.

Important milestone

It means Shoppers can receive, label and test medical cannabis supplied by WeedMD and represents an important milestone for both companies.

The firm will supply WeedMD-branded medical cannabis products to  the group and it is expected that they will be sold online as Canadian regulations currently restrict the sale of medical cannabis in retail pharmacies.

“As one of the most trusted names in pharmacy and patient support services, we congratulate Shoppers Drug Mart on clearing the first step to expanding its offerings and patient accessibility to premium medical cannabis,” said Keith Merker, CEO of WeedMD.

“We’re proud to be one of the few trusted and validated supply partners selected by Shoppers Drug Mart to provide medical cannabis and deliver WeedMD’s proprietary education platform to its pharmacists and medical experts.”

Shoppers Drug Mart is one of Canada’s most identifiable brands so the fact it’s working to become a leading dispensing agent, underlines the sense  that the tide has turned in terms of cannabis acceptance across the country.

Entrenched network

With more than 1,307 stores across the nation, the company has a deeply entrenched pharmacy network across the country, operating in nine provinces and two territories.

It operates under the Pharmaprix name in Quebec.

Pharmacist lobby groups have argued in the past that pharmacies are an ideal outlet for cannabis: pharmacists have the skills and training, systems in place for safeguarding, and are experts in drug dispensing.

Shoppers Drug Mart is owned by Loblaw Companies Ltd (TSE:L), Canada’s largest food retailer.

Earlier this month, WeedMD said it had become one of the first Canadian pot producers to partner internationally.

The company said it had exported its cannabis genetics to Australia’s Medifarm, a privately-held Queensland-based licensed producer.

Medifarm is the first licensed medical cannabis producer in Australia to be authorized for therapeutic use, said WeedMD.

WeedMD shares closed at C$2.25 on Monday.

Story by ProactiveInvestors