AFTER securing market access and approvals in both Denmark, Sweden and UK, STENOCARE A/S (“Stenocare”) now takes a first and firm footstep into the southern hemisphere entering Australia. Partnering with the Australian medical cannabis company Cannvalate will help Stenocare embrace a hastily growing market from day one offering Stenocare products to 600 pharmacies and 3,000 doctors. A combined CBD-THC medical cannabis oil will be available for Australian patients already from fourth quarter 2022 with expected sales acceleration in the first half of 2023.
As a global early mover in the legalisation of the use of medical cannabis, Australian patients have enjoyed six years of legalised market development creating a market reaching USD 51 million in size by 2021. The Australian market is anticipated to grow tenfold to USD 540 mill by 2030 according to Research and Markets pointing at the continuous political support for further cannabis legalisation, a growing patient population, more government subsidies, and the widespread presence of local and foreign vendors as the main market boosters.
Stenocare is partnering with Australian Cannvalate to enter the Australian market with the new oil product CBD-THC 12.5:12.5 Balanced (THC 12.5mg/mL + CBD 12.5mg/mL) that will be available to patients during Q4 2022 with sales expected to accelerate in the first half of 2023 and onwards creating more relief for patients and also resulting in revenue for Stenocare.
Co-founder of Stenocare, CCO Rolf Steno, can now check one more box off and announce another country in the growing portfolio of medical cannabis markets where Stenocare has secured the position to sell and distribute prescription medical cannabis to patients. While already servicing the Danish and Swedish markets for prescription oils, Stenocare in the early Spring of 2022 entered the British market with a substantial network of established local partners and distributors.
Stenocare has thus successfully accessed three of the world’s highly regulated medical markets and is now applying their market entry know-how to expand to more markets globally. Now, the team has managed to enter another lucrative and fast-growing medical cannabis market “Down Under”, with growth opportunities for the coming years.
“Entering the Australian market opens a new and truly global chapter for our company, and with this expansion we are on track to follow our Stenocare 2.0 strategy aiming to enter up to 10 countries by 2025. With today’s announcement, we get a foothold in a new region of the world with high growth rates and we have managed to secure a highway and speedy access into the Australian market partnering up with one of the leading national distributors of legalised medical cannabis,“ says CCO Rolf Steno from Brisbane, where he has finalized the deal with the Cannvalate team.
With expertise within production, regulatory approval, market development and clinical research, Cannvalate has been a key player in the creation of the medical cannabis industry in Australia. Cannvalate manages both an efficient product supply chain and distribution network servicing 600 pharmacies and 3,000 doctors that offer patients treatment with prescription-based medical cannabis.
Cannvalate Business Development Manager, Rob Jenny, comments on the new partnership:
“We at Cannvalate are excited to enter this cooperation with Stenocare, as we see this as having strategic and long- term value to our company. Cannvalate is a B2B service provider and has been pivotal in the establishment of the
medical cannabis industry in Australia. Stenocare has a strong position and focus on pharma values in their products and future formulations which will work well “down under”. Cannvalate has a strong network of over 3000 doctors and 600 pharmacies to bring forward the first Stenocare product to market during Q4 2022.”
Ambitious Expansion Strategy
Stenocare aims to enter and be firmly present as a market competitor in 10 countries in 2025 as a part of Stenocare 2.0 strategy and has now commenced its fourth market expansion. From today, Stenocare becomes an active participant in the development of the Australian market in a country of 26 million people offering patients authority approved oil-based cannabis products to patients.
“With the first new Stenocare product approved for sales in Australia, we have reached an important regulatory and commercial milestone that will expand our international presence and footprint in a completely new region of the world and will support our path of growth. Our strategy to enter markets with full approval of health authorities and with significant partners puts us in a favorable position to sell medical cannabis all over the country,” says CCO Rolf Steno.
The oil product’s specific sales expectations and product line extension plans will not be disclosed for competitive reasons.