Organigram Will Supply Cannabis To Israeli Medical Cannabis Market
MONCTON – Licensed cannabis producer Organigram has announced it has entered into a multi-year agreement to supply dried flower to Canndoc, a subsidiary of InterCure and one of Israel’s largest medical cannabis producers.
The deal will see Organigram provide 3,000 kilograms of high quality, indoor-grown dried flower products to Canndoc by December 31, 2021, to be processed and distributed in the Israeli medical marijuana market. Canndoc has the option to request an additional 3,000 kilograms of dried flowers during that time, subject to certain conditions.
“Success in international cannabis markets requires a disciplined assessment of opportunities and the identification of strong, world-class partners,” says Organigram CEO Greg Engel in a release. “For this reason, we are proud to work with Canndoc, a company who we believe shares both our focus on the production of high-quality products and deep commitment to helping patients around the world.”
“While we have been one of the suppliers for the Australian medical cannabis market for more than two years, the agreement with Canndoc represents an important, significant leap into the global cannabis marketplace for Organigram, allowing us to support not only medical cannabis patients in Israel but also potentially in the other major international markets that Canndoc serves,” added Engel.
Canndoc has been a licensed producer since 2008, with its medical cannabis products sold in pharmacies across Israel. It also has cultivation and distribution agreements in the European Union and Canada.
“Driven by the mission of meeting patients’ needs and improving their quality of life, we are pleased and proud to work with Organigram to help achieve better patient health and treatment outcomes in Israel, as well as other countries that recognize the value of these medicines for people in need,” said Canndoc chairman and former Prime Minister Ehud Barak in the release.
Ray Gracewood, Organigram’s SVP of marketing and communications, says the deal won’t impact its supply for the Canadian market.
“It will not have any impact on commitments to the Canadian market, either to consumers through the adult recreational market or to patients through the medical market,” he told Huddle via e-mail. “Organigram, as well as the industry in general, would no longer see product supply being a constraint for the domestic market.”
Although research of cannabis for medical use has been legal in Israel since 1973, the government only approved the export of medical cannabis in January of last year. So, companies like Canndoc are now looking to take advantage of a rapidly growing local market, as well as export opportunities.
The agreement includes an opportunity for Organigram to launch branded medical products with Canndoc in Israel and the EU. It also grants exclusivity and related rights to Canndoc within the Israel market for approximately seven and a half years.
The value of the deal wasn’t disclosed, but Organigram’s release noted that it’s based on a tiered pricing scheme under which the exact value will vary depending on factors like potency and product mix.