#Canada #Toronto #Kensana Health #MediPharm Labs #Napanee Facility

MediPharm Labs Terminates Sale of Napanee Facility

On February 10, 2025, MediPharm Labs Corp. announced that it has formally terminated the sale of its Napanee facility located in Ontario to Kensana Health Inc. Initially, this transaction involved the sale of MediPharm's wholly-owned subsidiary, ABcann Medicinals Inc., to Kensana Health under a specific purchase agreement. However, the agreement has now been rescinded due to Kensana Health's failure to meet certain terms and conditions within the stipulated timelines.

Given this development, MediPharm Labs has issued a notice of termination along with the provisions that allow it to retain several non-refundable deposits that were initially paid by Kensana Health. This outcome ensures that MediPharm Labs will continue its commercial agreements and operational activities in Napanee without facing any interruptions.

The significance of this decision is profound for MediPharm Labs as it continues to capitalize on its strong footing in highly regulated global markets. The company possesses a unique portfolio of internationally recognized licenses, positioning it as a prominent partner capable of delivering Canadian products to various international markets with significant demand. Notably, the company has been experiencing a surge in requests for their Business to Business (B2B) Good Manufacturing Practices (GMP) services from both their Barrie and Napanee locations.

In a statement from David Pidduck, CEO of MediPharm Labs, he emphasized the importance of international revenue growth for the company's success in 2024, indicating that the Napanee facility will be instrumental in pursuing further international opportunities in 2025.

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in creating and producing high-quality cannabis concentrates, pharmaceutical ingredients, and derived products. Utilizing a GMP-certified facility that complies with ISO standards, the company boasts advanced clean room technology to ensure its products meet the highest standards of purity and efficiency. MediPharm Labs prioritizes a research-driven approach, investing heavily in state-of-the-art technology and the expertise of its team to manufacture pure, precise, and trusted cannabis offerings for the medical market.

In 2021, MediPharm Labs achieved a notable milestone by obtaining a Pharmaceutical Drug Establishment License from Health Canada. This made it the first company in North America to secure a commercial-scale license for extracting multiple natural cannabinoids under Good Manufacturing Practices. This accomplishment marked the initial phase of the company’s registration process for foreign drug manufacturing with the U.S. Food and Drug Administration.

Moreover, MediPharm's recent acquisition of VIVO Cannabis Inc. in 2023 expanded its reach significantly within the medical cannabis sector, enhancing its services to patients in Canada alongside international avenues through partnerships in Australia and Germany. The acquisition also included the Harvest Medical Clinics in Canada, providing patients with essential consultations and education regarding medical cannabis prescriptions.

MediPharm Labs operates in compliance with all relevant laws in the jurisdictions where it operates, prioritizing integrity and transparency in its business practices.

Looking Ahead

While the cancellation of the sale might seem like a setback to some, MediPharm Labs has reframed this as an opportunity to strengthen its operational capacity and expand its market reach. The team remains optimistic about enhancing their international strategy, envisioning a broader scope of products and services poised to tap into the ever-growing global appetite for medical cannabis solutions. Forward-looking information suggests that, despite potential challenges, the outlook for MediPharm Labs remains promising as they adapt and grow within the dynamic cannabis industry landscape.