Red tape is strangling the development and sale of medicinal cannabis products, according to one firm.
(File photo) NZX-listed Cannasouth's chief executive says the regulatory pathway is difficult and takes a long time. Photo: 123 RF
NZX-listed Cannasouth, which is hoping to export products early next year, says local firms wanting approval have to jump through many hoops.
Chief executive Mark Lucas said the Medicinal Cannabis Agency is assessing products it is not used to seeing, which has caused delays.
"The regulatory pathway is definitely difficult, it takes a long time."
"The medicinal cannabis industry is highly complex, highly regulated so there are all sorts of challenges in this business. But we've got a high quality team and we're working through them one by one," he said.
Lucas said some overseas models could be looked at to improve the Code of Good Manufacturing Practice (GMP).
"There are some interpretations of the GMP regulations that have been applied to medicinal cannabis products that are a little different than say what you would see in Germany, one of the biggest markets in the world."
"So hopefully as the scheme is reviewed, there will be some look across some other markets as how we can better align some of our regulations," Lucas said.
Another NZX listed medicinal cannabis firm, Rua Bioscience, said it was also in discussion with officials over approval.
"There's probably a few things within the registration of new products that could be worked on by the Ministry of Health and Medsafe," chief executive Rob Mitchell said.
"I think ultimately they have the same goals in mind of getting product to New Zealand patients," he said.
Both companies said they are on track to put products on the market early next year, despite posting increased losses.
Rua Bioscience announced a $4.4 million loss, up from the previous year's $2.8m, while Cannasouth posted a loss of just under $2m over the past six months against $1.4m.