Nicely written, but another paid for article. - FUNMAN
During the last month, MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE:MLZ) has announced several strategic white-label supply agreement with cannabis companies that are levered to emerging international markets.
MediPharm has been nothing short of a multi-national execution story and has more than 30 tolling and processing agreements with operators in 8 countries. The company has a leading position in the international cannabis oil industry, and we expect this aspect of the business to serve as a key growth driver in 2021.
Although MediPharm has substantial domestic and international growth prospects, we believe the market is discounting this aspect of the story. One of the reasons we are bullish on the international side of the business is related to the potential for substantial margin expansion. In the EU, the price of cannabis products is incrementally higher than Canada and we expect this market will prove to be much more profitable for MediPharm.
MediPharm is led by a management team that was able to recognize a significant growth opportunity abroad, while its peers remained focused on the domestic opportunity. The management team constructed a state-of-the-art GMP facility that meets the EU’s standards, and this has played a crucial role with the success that MediPharm has had on the international side of the business.
Constructing a facility to meet EU GMP standards is not a cheap or easy process. These standards have raised the barrier to entry for Canadian cannabis companies that want to expand into the EU and we are favorable on this. In our opinion, MediPharm is in a league of its own and has a significant first mover advantage over its competition as it relates to international markets.
Going forward, we believe that MediPharm will continue to increase market share in strategic international markets and are bullish on this trend. Earlier last week, MediPharm announced its 12th supply agreement to bring GMP certified cannabis products to a burgeoning Australian medical cannabis market and an emerging New Zealand market.
MediPharm continues to be the go-to provider for pharmaceutical and health and wellness companies that are entering emerging international cannabis markets, especially in Australia. If MediPharm can replicate the success it has had in Australia in the EU, the business should be recording incremental growth on a quarter-over-quarter basis.
One of the reasons we are confident in MediPharm’s ability to capitalize on the opportunity in the EU is related to the businesses that it works with and partners with. We are especially excited about the relationship that MediPharm has with STADA which has approx. 20% of market share of the generic pharmaceutical industry in EU and Germany.
Canopy Growth Corporation (WEED.TO) (CGC) is one of MediPharm’s largest clients and we consider Canopy to be the global cannabis leader. The services that MediPharm provides Canopy Growth are not easily replicated and we consider the relationship to be sticky in nature. Going forward, we expect Canopy Growth to be one of the biggest beneficiaries of the growth of the international cannabis market and find this relationship to be an attractive aspect of the MediPharm story.
Over the next year, we expect MediPharm to report margin expansion as it continues to cut costs and ramp revenues. Through its relationship with STADA, we believe that MediPharm has put the necessary infrastructure in place to capitalize on emerging cannabis markets. We are favorable on the direction that the management team is bringing the business and consider MediPharm to be trading at a discount when compared to its peers.
If you are interested in learning why we believe MediPharm Labs is positioned to take market share in Canada and abroad from companies like Neptune, please send an email to support@technical420.com with the subject “MediPharm” to be added to our distribution list.
Pursuant to an agreement between StoneBridge Partners LLC and Medipharm Labs we have been hired for a period of 180 days beginning August 18, 2020 and ending March 18, 2020 to publicly disseminate information about (LABS) including on the Website and other media including Facebook and Twitter. We are being paid $6,000 per month (LABS) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero (0) shares of (LABS), which we purchased in the open market. We plan to sell the “ZERO” shares of (LABS) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (LABS) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
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