MediPharm now also delivers to Brazil
The Canadian cannabis company signs an important supply agreement with the South American country.

MediPharm Labs, Corp. (TSX: LABS) says it has closed a supply deal in the Brazilian medical cannabis market as the troubled Canadian extractor continues to target new international opportunities. On Tuesday, the Ontario company announced that it had signed a two-year contract with XLR8 Brazil, based in Rio de Janeiro, to supply the local distributor with several CBD and THC extract products. Although the company did not disclose the financial terms of the deal, it sees great potential within Brazil - a country with a population of nearly 210 million people. Cannabis research firm Prohibition Partners predicts medicinal cannabis sales of $ 12 billion in Latin America through 2028, with the largest growth being driven by Brazil. "With its large population, forward-thinking legal ecosystem and economic strength, Brazil is one of the most promising medical cannabis markets in the world and the natural next port of call for our international expansion and growth strategy," MediPharm CEO Pat McCutcheon said in a statement. This is the second time this month that MediPharm has signed a supply contract within Latin America after signing a one-year contract with a Peru-based manufacturer. The company also landed two deals in the Danish medical market this month, and says it will continue to focus on international expansion after posting three-quarters of declining revenues in Canada. MediPharm says its pharmaceutical approach to extraction and GMP certification at its Ontario and Australian sites has helped the company close more global supply deals. Under the Brazilian legal framework, the federal government has set strict requirements for the production, import and dispensing of all medical cannabis programs. In December 2019, the National Agency for Health Surveillance of Brazil, as part of a three-year pilot program, issued regulations stipulating that all imports must meet GMP certification and global pharmaceutical inspection standards. In Brazil, medical cannabis may only be prescribed by registered doctors and sold through pharmacies to patients with severe, debilitating diseases. Brazil is expected to have potentially one of the highest patient numbers in the world, according to Prohibition Partners. MediPharm said it chose to partner with XLR8 "because of its focus on quality and compliance, its extensive relationships with local health professionals, and its dedicated focus on promoting scientific validation and training in the medical cannabis field". The company's shares have fallen eight cents since the delivery deal was announced and more than 80 percent since the start of the year.
