Australian biotech Medigrowth has revealed plans for a new research facility in Geelong, with the goal of expanding clinical and commercial opportunities for medicinal cannabis products.
But co-founder Adam Guskich says the project has an even larger goal: to develop the sector to a point where regulators, doctors and patients drop the term ‘cannabis’, and simply refer to it as ‘medicine’.
Melbourne-based Medigrowth on Tuesday announced its intention to build out a new ‘Centre of Excellence’ in Geelong, where the six-year-old company is already collaborating on clinical research with experts from Deakin University.
The company intends to build out its operations into a research facility and proving ground for medicinal cannabis products developed by local and international organisations alike.
Speaking to SmartCompany, Guskich said establishing a permanent base will help the company while establishing the maturity of the local sector.
“It’s a long term vision, for future-proofing both Medigrowth operations, and equally future-proofing a broad industry component we feel is lacking at the moment,” he said.
Industry monitoring firm IBISWorld states the Australian medicinal cannabis market drew $57 million in revenue in 2022, a figure totally eclipsed by the revenue of mainstream pharmaceutical manufacturing.
But the federal government only legalised access to medicinal cannabis in 2016, kickstarting a local arms race to develop, manufacture, and legally distribute products through approved medical practitioners.
Medigrowth, founded in 2017, was among the first wave of Australian biotech firms to explore the possibilities of medicinal cannabis for patients facing chronic health conditions.
It has now developed cannabis strains that local cultivators turn into dried flowers and oils for medicinal use.
The firm has also invested in patient outreach, launching its own telehealth outfit Haiku Health.
The platform, launched last week, offers patients access to GPs authorised to prescribe medicinal cannabis products, including those developed by Medigrowth itself.
It joins outlets like Montu’s Alternaleaf, Hello Mello, and Greenhouse Medical Clinic in the burgeoning market for cannabinoid-prescribing telehealth services.
As Haiku Health establishes itself in an increasingly vibrant niche, Guskich said establishing the new centre will assist the company as it investigates ways to move beyond ‘traditional’ medicinal cannabis delivery systems and into more mainstream forms, like pills or tablets.
Those delivery systems, along with potential changes to how the Therapeutic Goods Administration (TGA) oversees the tightly-regulated sector, could change how Australians see medicinal cannabis, Guskich said.
“We look forward to the day medicinal cannabis is no longer referred to as medicinal cannabis, but simply, ‘medicine.’”
The new centre could also open new research pathways for outside enterprises, he added.
Medigrowth has worked with leading academic institutions on research into potential new uses for medicinal cannabis.
Interim results for a long-running trial into the potential use of medicinal cannabis to assist young people with autism, conducted with Deakin University and Swinburne University, will arrive in October.
Guskich said the facility — combined with Australia’s research and development tax incentives — could allow third-party firms to experiment in a “gold standard medtech environment”.
“It would provide an opportunity for both national and international parties to potentially utilise that centre on a cooperative or contract basis,” he said.
“I think having that ability for a one-stop hub for research, R&D, product development, genetic development, and commercial operations is a big advantage.”
Medigrowth will today open an equity crowdfunding campaign to help fund the development, following in the footsteps of WA medicinal cannabis firm Cannaponics, which raised $5 million in May.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
