Canada’s Medical Cannabis Sector Booming

Canada medicinal marijuana market
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Health Canada has (somewhat belatedly) published its medical cannabis market data for the quarter ending June 30 – and it appears the sector is booming.

The total number of registered patients at the end of June had reached more than 75,000 – growing by more than 22,000 over the previous quarter. No doubt that figure has climbed quite a bit again in the last four months.

4,037 kilograms of cannabis was sold for the period April 1, 2016 to June 30, 2016 (what Health Canada terms as Q1), up nearly a tonne over the previous quarter.

1,500 kilograms of cannabis was sold during the period, also up nearly a tonne.

The Marihuana for Medical Purposes Regulations require health care practitioners to include the daily quantity of dried marijuana on all registered clients’ medical documents, so the department has pretty good figures in this regard. The average amount of dried marijuana¬† authorized per client was 2.7 grams a day.

By the end of the quarter, there were 11,788 kilograms of dried marijuana in licensed producers’ inventories and 2,038 kilograms of cannabis oil.

Q1 and previous quarters’ market data can be viewed here.

Figures for upcoming quarters will be quite interesting as Canadian patients have had have the option of cultivating their own plants since August 24th. This was the result of the new Access to Cannabis for Medical Purposes Regulations (ACMPR) coming into effect.

Canada’s program has been lauded around the world by medical cannabis supporters as one to emulate. Unlike other programs where there are qualifying conditions, the use of marijuana for medical purposes is a decision made between a patient and his/her physician (and assuming supportive medical studies).

While there’s no restrictions under the ACMPR on the daily amount a physician may authorize, there is a possession limit for patients of the lesser of the equivalent of 150 grams or 30 times the daily amount of dried marijuana.

The country’s industry has also piqued the interest of investors given the intention of limiting the number of production and supply licenses available in the value chain, bringing with it the potential to create large, robust companies.