Medcan Australia is the first fully licensed medicinal cannabis company in Australia to pay its shareholders a dividend (19 per cent of the net operating Profit after tax).
Established in 2016, the Queensland-based medicinal cannabis company operates a full-service operation including cultivation, manufacture, import, export, wholesaling and distribution.
Medcan Australia CEO Craig Cochran attributes the company’s ability to produce a dividend to its business model and patient-first philosophy.
“Medcan Australia’s approach is health-based and clinician-led,” Mr Cochran said.
Mr Cochran stated the biggest cannabis cultivation wasn’t necessarily the best when it comes to producing medicinal crops.
“A farm can produce paddocks of wheat, but it doesn’t mean it produces the best bread or sells the most loaves,” he said.
“Our focus is to provide best-in-market medicinal cannabis, make it accessible and affordable and ensure locally grown and imported products are consistently effective.
“While perfecting our Medcan cultivation, we have built a trusted position with an unparrelled patient and doctor network and secured a strong retailing, dispensing and wholesaling position.
“We know our unique approach works with revenue increasing by 493 per cent in the 2020-21 fiscal year, exceeding forecasts by 26 per cent.”
At the end of that fiscal year Medcan Australia achieved a 31 per cent EBITDA and a net profit after tax of 17 per cent.
“We are pleased shareholders will see a return, with some more than tripling their investment in just 12 months,” said Mr Cochran.
He said the Australian medicinal cannabis business had come a long way in a few short years.
“Less than two years ago medicinal cannabis was nearly impossible for an Australian patient to access, but now, through regulated channels, Medcan is helping thousands of patients every week,” he said.
“We’re extremely proud of what we have achieved and contributed to patient health.”
At the end of October, the Therapeutic Good Administration (TGA) had approved more than 180,000 Special Access Scheme (SAS) Category B applications for unapproved medicinal cannabis products, with requests more than doubling in less than 12 months.
Further to this, the number of authorised medical cannabis prescribers continue to increase with recent figures from FreshLeaf Analytics showing that authorised medical cannabis prescribers sit at 430, up from 179 in the past year.
“International acceptance, reduction in costs, investment, research and Australia’s adoption of world best-practice cultivation, manufacturing and education has led to a seismic shift in the acceptance of medicinal cannabis,” Mr Cochran said.
Most medicinal cannabis drugs are not supported by Australia’s Pharmaceutical Benefits Scheme (PBS). Medcan established a successful partnership with the doctor-led network ‘Cann I Help’ to support eligible patients by providing them access to subsidies.
The exclusive three-tiered program offers 15, 30 or 50 per cent subsidies across a range of treatments.
To access these subsidies patients are asked to undergo an initial screening that involves a doctor’s assessment of a patient’s eligibility. This covers their medical condition and its severity; their ability to afford medications; alternative funding sources; ATSI status; and extraordinary circumstances.
Medcan Australia is forecasting a revenue increase of 265 per cent in the 2021/22 fiscal year, and with the company’s first state-of-the-art vertical cultivation facility now underway, Mr Cochran is confident the company will continue to return strong results for its investors into the future.
For media enquiries – Siobhan Dooley, Sequel PR, 0417 500 787