(RTTNews) - MediPharm Labs Corp., a Canada-based provider of cannabis oil and concentrates, said it is entering Brazil in partnership with XLR8 Brazil, a Rio de Janeiro-based distributor for medical cannabis products. Brazil is Latin America's largest medical cannabis market.
The company said its wholly owned subsidiary MediPharm Labs Inc. will supply premium, GMP-certified formulated cannabis oil to XLR8.
Under the two-year agreement that will commence upon product authorization, MediPharm Labs will several cannabis concentrate formats for patient-ready formulated products that will be distributed by XLR8 to leading pharmacies and other authorized channels in Brazil.
The initial products to be supplied by MediPharm include a 20:1 CBD rich product and a 10:10 balanced THC and CBD formulation.
"By virtue of its large population, forward-thinking legislative eco-system and economic strength, Brazil is one of the world's most promising medical cannabis markets and the natural next port of call for our international expansion and growth strategy," said Pat McCutcheon, CEO of MediPharm Labs.
This is MediPharm Labs' second distribution agreement in Latin America. In early September, the company said it will supply premium, formulated cannabis oil to Cann Farm Peru S.A.C., a Lima-based producer and distributor serving Peruvian and other markets in Latin America.
The LATAM Cannabis Report by Prohibition Partners forecasts that the LATAM market is expected to exceed $12 billion by 2028.
Brazil is the region's largest addressable market with a population of nearly 210 million. According to Prohibition Partners, Brazil could potentially have one of the world's highest potential patient counts.
In December 2019, Brazil established a new legalized environment for the sale and consumption of cannabis for medical use. As part of the announcement by the National Agency for Health Surveillance of Brazil or ANVISA, a new class of medical cannabis products can be prescribed by doctors and sold through pharmacies, enabling safe and legal patient access.
XLR8 said it will obtain ANVISA Sanitary Product Authorization and undertake the process for final product registrations under its deal with MediPharm Labs.
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