The facility will focus on AusCann’s cannabinoid pharmaceutical product pipeline, supporting development of innovative formulations and dose forms.
AusCann executive director & interim CEO Paul MacLeman said the acquisition of the R&D site was a major stepping stone for the company.
He said: “It allows the creation of a fully-integrated, state-of-the-art facility for medicinal cannabis.”
The facility was purchased for $5.25 million and AusCann will invest up to $6 million over time to customise and fit out the site for use during 2019.
The acquisition and upgrade costs will be funded from AusCann’s cash balance which was more than $40 million prior to the acquisition.
MacLeman added: “AusCann’s key point of difference compared to other cannabis producers is our commitment to a rigorous pharmaceutical development program.
“[This] will now be strengthened through the establishment of our own facility to support further R&D towards bringing new products to market.
“2019 will be a major year for AusCann with the planned launch of our hard-shell cannabinoid capsules which addresses the need for stability and consistency of dose.
“Our partner PCI Pharma is manufacturing the first product line as we aim to commence the production of our capsules towards the middle of this year.”
The cannabinoid capsules are expected to be released this year and are for the treatment of chronic pain.
They will initially target a market that is estimated to be 1.9 million Australians who suffer chronic neuropathic pain.
Sufferers can access the treatment through the Therapeutic Goods Administration’s (TGA) special access scheme.
Around 3.2 million Australians suffer chronic pain and existing treatments are lacking in efficacy and have notable side effects.