The Australian cannabinoid drug market has been gaining momentum in recent years. Cannabinoids, which are chemical compounds derived from the cannabis plant, have shown potential therapeutic benefits for various health conditions. The increasing acceptance of medical cannabis has resulted in a growing interest in the cannabinoid drug market in Australia.
The regulatory environment in Australia for cannabinoid-based medicines is complex. The Therapeutic Goods Administration (TGA) is responsible for regulating medicines and medical devices in Australia. To date, the TGA has approved only a few cannabinoid-based medicines, including Epidyolex, which is used to treat seizures associated with certain types of epilepsy. However, the TGA has also established the Special Access Scheme (SAS) and the Authorized Prescriber Scheme (APS), which allow doctors to prescribe unapproved medicines, including medical cannabis products, to their patients in certain circumstances.
In addition to TGA regulations, each state and territory in Australia has its own regulations related to the use of medical cannabis. These regulations vary widely between jurisdictions, making it challenging for patients to access medical cannabis products in some regions.
The market has attracted significant investment in recent years. According to a report by FreshLeaf Analytics, Australian cannabis companies raised more than $200 million in capital in 2020, a significant increase from the $63 million raised in 2019. The report notes that the COVID-19 pandemic had a minimal impact on the capital raises in the cannabis industry in Australia, with most of the funds being raised in the second half of the year.
Several Australian companies have successfully raised significant capital to fund their research and development efforts. For example, Zelira Therapeutics (ZLD:AU) raised $11 million in August 2020 to fund its clinical trials for cannabis-based medicines to treat autism and insomnia. Similarly, AusCann Group (AC8:AU) raised $33 million in November 2020 to fund its clinical trials for chronic pain and multiple sclerosis.
The market is still in its infancy, but there is significant potential for growth in the coming years. The market is expected to grow at a compound annual growth rate of 26.6% between 2020 and 2027, according to a report by Grand View Research. The report notes that the increasing prevalence of chronic diseases, such as cancer and arthritis, is driving the demand for cannabinoid-based medicines.
Despite a complex regulatory environment, several Australian companies have successfully raised capital to fund their research and development efforts. The increasing prevalence of chronic diseases and the evolving regulatory environment are expected to drive the growth of the Australian cannabinoid drug market in the coming years.