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Disappointing RNS in my view. From big farmer to high risk micro pharma in a paragraph. What happened to all those tonnes of product they were going to grow. They don't even seem to have a drive to compete in the export market and try to tap into growth outside the UK. We're in the hands of a bottle of mrx and white coated academics now. Heaven help us. A company no longer master of its own destiny and a hostage to fortune.
I’ve got mixed views. If the RCTs prove positive then the NHS will be onboard and investors will be a winner, but having ditched the growing and seed sales it leaves us as a one hit or fail which I’m not a huge fan of. To be honest I preferred the multiple chances to win.
No doubt the doomster and Mr Negative Gazzleberry will be claiming doom and gloom as his preferred way!
We haven't ditched the growing and seed sales. The growing is paused until we see the market demand and margins robust enough to justify the next step of capex. All the data from two years of trial growing has been captured and is secure. We are planning to continue the seed programme in collaboration with a university so that we can reduce the cost of the programme now that we have refined and confirmed the breeding protocols. Best, Melissa
We listed ANA as an investing company which meant it was to make non controlling investments in other companies in the medical cannabis sector. When we purchased DJT and MRX it was to pursue a strategy to deliver cannabinoid medicines into the UK market. That is still our plan. The 'cannabis' sector has changed significantly since 2019 and we have adapted our strategy to address the changes we have seen. The key change is a move towards evidence to get licenced medicines. Margins are squeezed where there is no way to differentiate between medicines and so our view is that this evidence is key to success. Best, Melissa
Thanks for posting to help clarify Melissa. Unfortunately the type of response you received there is typical of this platform.
For anyone who wants a wider and more informative conversation than can be found on LSE why not join our Telegram group. We currently have 75 members who post about the company and the wider med cann industry.
I find it quite interesting that for someone who purports to have filtered me because he doesn’t want to engage with me, still feels the need to comment that I have posted. 🤣
And for absolute clarity and for the benefit of others, I do not have any type of relationship with Charles first name or otherwise. I have never messaged him, emailed or spoken to him.
I do however occasionally exchange emails with Jeremy, who answers questions that are posed in the ANA Telegram group. All done in correct consideration of MAR.
Replying to PompeyMagnus: Both 'big farmer' and 'micro pharma' are high risk at this early stage of the industry's development. GW got their first licence to cultivate in 1998 and ended up doing clinical trials to build a company that got bought for $7.2bn. The went pharma and simply used their cultivation to provide the active ingredients for their licenced medicine. The cultivation/farming side of medical cannabis is the supply of an ingredient into a medicine, it isn't an end in itself. It is about 10% of the job of creating a medicine in flower or extracted oil format. The challenge of the 'farmer' model is that it is very difficult to differentiate the final product and so competition is on price (mainly). Going the 'pharma' model means we gather evidence for a formulation of cannabis oil and get it licensed by the MHRA. That means it can be on the list for prescribing on the NHS in large scale. Then we could look to cost advantages by growing our own flower for our own medicines (like GW has done). We have not looked to offshore markets as that has the same 'farmer' issues and as a UK PLC we have regulatory constraints about where we are allowed to do business in cannabis. Best, Melissa
For clarity, the deal to which Melissa refers is where Jazz Pharma bought GW in 2021, and yes it was for $7.2bn.