Jacob Redmond
Well-Known Member
Almost a year after the federal government revamped the way medical marijuana is produced and distributed in Canada – moving from home-based operations to large-scale commercial ones – the fledgling industry continues to encounter growing pains.
A trial is set to begin next month in Federal Court that will hear patients argue that the price of marijuana charged by commercial producers is too high, depriving them of medicine to treat serious ailments. Until a decision is made, individuals who previously held licences to possess and grow their own marijuana have been allowed to continue doing so.
Commercial producers have faced other challenges, including restrictions on how they advertise their products; maintaining adequate supplies; and responding to product recalls.
In a statement, the Canadian Medical Cannabis Industry Association, acknowledged some of the challenges but says the industry remains optimistic.
"Previous stigma with cannabis has placed the industry under a microscope," said the statement. "However, there have also been success stories at the company level and at the industry level."
Under the old regime, patients could grow their own pot, have a designated person do the growing, or buy from Health Canada. But the system was rife with abuse, prompting federal regulators to switch to a new system last year, which restricts production to licensed commercial producers and does not allow patients to possess more than 150 grams of dried marijuana at any time.
A group of B.C. patients sued the government in Federal Court, arguing that the new rules were overly restrictive and would make marijuana unaffordable, forcing them to "choose between their liberty and their health." Whereas the cost to produce marijuana under the old system ranged from $0.50 to $2 per gram, the cost under the new regime would be $8 to $12 per gram, they said.
A judge granted a temporary injunction, allowing those who had previously been allowed to possess and grow marijuana under the old system to keep doing so, at least until the constitutional challenge was heard. The trial is set to begin Feb. 23.
For the 23 commercial producers currently licensed in Canada, the injunction has meant a smaller pool of potential customers. Under the old regime, there were roughly 35,000 Canadians licensed to possess marijuana. Commercial producers currently report having about 14,000 clients.
"The legal challenge has cast a shadow over the entire policy approach," said UBC business professor Werner Antweiler. "As is true for any business, uncertainty is not good for business."
But one upside to the injunction is that it has afforded licensed producers time to steadily grow their production and customer base, the industry association said.
Since the system overhaul took effect April 1 last year, commercial producers have faced other setbacks.
On the eve of the changeover, RCMP seized shipments of medical marijuana products at a B.C. airport that were destined for two Ontario commercial producers, saying that the shipments contained items that did not match what was outlined in government paperwork.
Between April and August, Health Canada recalled marijuana products from three companies, due to discoveries of mould and bacteria beyond acceptable limits, and questionable production practices.
In November, Health Canada sent warning letters to commercial producers that their advertising must be limited to basic information, such as brand name, cannabinoid content and price per gram. Any therapeutic claims, such as saying that a product relieves pain, is forbidden. Even describing the taste as "earthy" or "sweet" is off-limits.
Health Canada says all companies have complied. The industry says the ad rules do level the playing field, but some companies are not thrilled about having to sanitize their ads.
"Because of the unique nature of this product, the many different varieties and scents, etc., it is important for patients to have access to appropriate amounts of information," said Neil Closner, CEO of MedReleaf Corp., in Markham, Ont.
Patients can call a company for more information or consult doctors. But "in this age of the Internet, most people just want to be able to review available products and suppliers online," Closner said.
Some companies are also complaining that Health Canada is taking too long to approve licence applications or expansions of their production facilities.
Zack Hutson, a spokesman for Nanaimo, B.C.-based Tilray, says the company has encountered "significant delays" waiting for Health Canada to inspect and approve 22 additional grow rooms, representing about 60 per cent of its production capacity.
Sean Upton, a Health Canada spokesman, said that, as of late December, there were just over 300 licensed-producer applications awaiting approval. Some applications take a few months to several months to process.
"Health Canada continues to monitor the program very closely to ensure reasonable access to marijuana for medical purposes is provided while also protecting public health, safety, and security," he said.
Despite the ongoing challenges, some companies say they are meeting targets. Keelan Green, a spokesman for Toronto-based Mettrum Ltd., said the company reached maximum capacity in July. Health Canada subsequently approved a second production licence allowing it to grow an additional 9,000 marijuana plants and take on new customers.
Toronto-based Bedrocan said in a news release last month that it expects to complete a 52,000-square-foot production facility soon that will allow it produce domestically. It currently imports medical marijuana from a partner in the Netherlands.
Talks between suppliers and the insurance industry about extending coverage to patients are said to be ongoing.
Canada's move from personal production to commercial production was the right move, said Antweiler, the UBC professor.
"It is easier to regulate and monitor larger producers who can put into place necessary quality control measures and security measures, rather than smaller producers who cannot afford easily to put appropriate measures into place," he said.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Canada?s fledgling medical marijuana industry hit by series of setbacks | canada.com
Author: Douglas Quan
Contact: Dquan@Postmedia.com
Photo Credit: POSTMEDIA NEWS/FILES
Website: News | canada.com
A trial is set to begin next month in Federal Court that will hear patients argue that the price of marijuana charged by commercial producers is too high, depriving them of medicine to treat serious ailments. Until a decision is made, individuals who previously held licences to possess and grow their own marijuana have been allowed to continue doing so.
Commercial producers have faced other challenges, including restrictions on how they advertise their products; maintaining adequate supplies; and responding to product recalls.
In a statement, the Canadian Medical Cannabis Industry Association, acknowledged some of the challenges but says the industry remains optimistic.
"Previous stigma with cannabis has placed the industry under a microscope," said the statement. "However, there have also been success stories at the company level and at the industry level."
Under the old regime, patients could grow their own pot, have a designated person do the growing, or buy from Health Canada. But the system was rife with abuse, prompting federal regulators to switch to a new system last year, which restricts production to licensed commercial producers and does not allow patients to possess more than 150 grams of dried marijuana at any time.
A group of B.C. patients sued the government in Federal Court, arguing that the new rules were overly restrictive and would make marijuana unaffordable, forcing them to "choose between their liberty and their health." Whereas the cost to produce marijuana under the old system ranged from $0.50 to $2 per gram, the cost under the new regime would be $8 to $12 per gram, they said.
A judge granted a temporary injunction, allowing those who had previously been allowed to possess and grow marijuana under the old system to keep doing so, at least until the constitutional challenge was heard. The trial is set to begin Feb. 23.
For the 23 commercial producers currently licensed in Canada, the injunction has meant a smaller pool of potential customers. Under the old regime, there were roughly 35,000 Canadians licensed to possess marijuana. Commercial producers currently report having about 14,000 clients.
"The legal challenge has cast a shadow over the entire policy approach," said UBC business professor Werner Antweiler. "As is true for any business, uncertainty is not good for business."
But one upside to the injunction is that it has afforded licensed producers time to steadily grow their production and customer base, the industry association said.
Since the system overhaul took effect April 1 last year, commercial producers have faced other setbacks.
On the eve of the changeover, RCMP seized shipments of medical marijuana products at a B.C. airport that were destined for two Ontario commercial producers, saying that the shipments contained items that did not match what was outlined in government paperwork.
Between April and August, Health Canada recalled marijuana products from three companies, due to discoveries of mould and bacteria beyond acceptable limits, and questionable production practices.
In November, Health Canada sent warning letters to commercial producers that their advertising must be limited to basic information, such as brand name, cannabinoid content and price per gram. Any therapeutic claims, such as saying that a product relieves pain, is forbidden. Even describing the taste as "earthy" or "sweet" is off-limits.
Health Canada says all companies have complied. The industry says the ad rules do level the playing field, but some companies are not thrilled about having to sanitize their ads.
"Because of the unique nature of this product, the many different varieties and scents, etc., it is important for patients to have access to appropriate amounts of information," said Neil Closner, CEO of MedReleaf Corp., in Markham, Ont.
Patients can call a company for more information or consult doctors. But "in this age of the Internet, most people just want to be able to review available products and suppliers online," Closner said.
Some companies are also complaining that Health Canada is taking too long to approve licence applications or expansions of their production facilities.
Zack Hutson, a spokesman for Nanaimo, B.C.-based Tilray, says the company has encountered "significant delays" waiting for Health Canada to inspect and approve 22 additional grow rooms, representing about 60 per cent of its production capacity.
Sean Upton, a Health Canada spokesman, said that, as of late December, there were just over 300 licensed-producer applications awaiting approval. Some applications take a few months to several months to process.
"Health Canada continues to monitor the program very closely to ensure reasonable access to marijuana for medical purposes is provided while also protecting public health, safety, and security," he said.
Despite the ongoing challenges, some companies say they are meeting targets. Keelan Green, a spokesman for Toronto-based Mettrum Ltd., said the company reached maximum capacity in July. Health Canada subsequently approved a second production licence allowing it to grow an additional 9,000 marijuana plants and take on new customers.
Toronto-based Bedrocan said in a news release last month that it expects to complete a 52,000-square-foot production facility soon that will allow it produce domestically. It currently imports medical marijuana from a partner in the Netherlands.
Talks between suppliers and the insurance industry about extending coverage to patients are said to be ongoing.
Canada's move from personal production to commercial production was the right move, said Antweiler, the UBC professor.
"It is easier to regulate and monitor larger producers who can put into place necessary quality control measures and security measures, rather than smaller producers who cannot afford easily to put appropriate measures into place," he said.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Canada?s fledgling medical marijuana industry hit by series of setbacks | canada.com
Author: Douglas Quan
Contact: Dquan@Postmedia.com
Photo Credit: POSTMEDIA NEWS/FILES
Website: News | canada.com
