MediPharm stock is trading down slightly despite MediPharm Labs (TSX:LABS) (OTCQX:MEDIF) increasing its exports of medical cannabis concentrate to Australia.
MediPharm Stock Down on Australia Expansion
MediPharm Labs Corp, a Canadian market leader in cannabis extraction and cannabinoid isolation, announced this morning that it had successfully completed its second cannabis concentrate export to Australia, at a volume 137% greater than the previous shipment in June. Health Canada also gave the company a second set of permits so that MediPharm could ship more medical cannabis concentrates to Australia. MediPharm stock is down 2.6% to $3.35 during Wednesday trading.
“We are pleased to have completed our second set of shipments of medical cannabis concentrate into Australia in the third quarter as we look to participate in addressing the growing Australian medical patient demand,” said Pat McCutcheon, Chief Executive Officer of MediPharm Labs. “As international demand for purified cannabis concentrates continues to grow, we have focused on expanding our global supply chain and our international presence, including through our recently announced supply agreement for the German medical market."
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As mentioned by McCutcheon, MediPharm Labs entered the European market last month after signing a private label sales agreement with ADREXpharma, a German wholesale distributor of controlled drugs that serves over 20,000 pharmacies in the country. The agreement will see MediPharm supply ADREXpharma with purity assured cannabis derivative products, such as THC and CBD oil. Despite expanding internationally, MediPharm stock is down over 50% from an August peak of $7.17.
MediPharm Stock Slumping in Recent Weeks
It's difficult to tell why MediPharm stock has been declining in recent weeks, considering that the company has entered into a series of agreements with huge potential. Just last week, MediPharm announced a supply deal with TerrAscend (CSE:TER) (OTCQX:TRSSF), which could be worth up to $192 million CAD over the next three years. Also in September, the company penned a deal with Cronos Group (TSX:CRON) (NASDAQ:CRON), which provided MediPharm shares with a 2% boost.
With legalization 2.0 just around the corner, MediPharm Labs looks well-positioned to benefit from a surge in demand for cannabis derivatives, and investors will be hoping this helps the company's shares recover from their recent slump.
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