Medical cannabis company AusCann Group (ASX:AC8) has completed the acquisition of a large research and development facility in Perth.
The company said the facility will focus on its cannabinoid pharmaceutical product pipeline and support the development of new formulations and dose forms.
"Research and development activities will ensure that the Company’s products are of the highest quality, underpinned by rigorous data on stability and effectiveness, and with consideration towards ensuring cost effectiveness for the patient," it said in a statement.
According to executive director and interim CEO Dr Paul MacLeman, “The acquisition of the research and development site is a major stepping stone for AusCann as it allows the creation of a fully integrated, state of the art facility for medicinal cannabis.
“AusCann’s key point of difference compared to other cannabis producers is our commitment to a rigorous pharmaceutical development program, which 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 R&D facility was purchased for $5.25 million. The company said it will invest further capital of up to $6 million over time to customise and fit out the site to purpose. The facility is expected to be ready for use during calendar year 2019.