Pubdate: Wed, 28 Jan 2015
Source: National Post (Canada)
Copyright: 2015 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU
Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286
Author: Douglas Quan
Page: FP14

MEDICAL MARIJUANA INDUSTRY LANGUISHING

VANCOUVER - Almost a year after the federal government revamped the 
way medical marijuana is produced and distributed in Canada - moving 
from home-based operations to large-scale commercial ones - the 
fledgling industry continues to encounter growing pains.

A trial is set to begin next month in Federal Court that will hear 
patients argue that the price of marijuana charged by commercial 
producers is too high, depriving them of medicine to treat serious 
ailments. Until a decision is made, individuals who previously held 
licences to possess and grow their own marijuana have been allowed to 
continue doing so.

Commercial producers have faced other challenges, including 
restrictions on how they advertise their products; maintaining 
adequate supplies; and responding to product recalls.

In a statement, the Canadian Medical Cannabis Industry Association, 
acknowledged some of the challenges but says the industry remains optimistic.

"Previous stigma with cannabis has placed the industry under a 
microscope," said the statement. "However, there have also been 
success stories at the company level and at the industry level."

Under the old regime, patients could grow their own pot, have a 
designated person do the growing, or buy from Health Canada. But the 
system was rife with abuse, prompting federal regulators to switch to 
a new system last year, which restricts production to licensed 
commercial producers and does not allow patients to possess more than 
150 grams of dried marijuana at any time.

A group of B.C. patients sued the government in Federal Court, 
arguing that the new rules were overly restrictive and would make 
marijuana unaffordable, forcing them to "choose between their liberty 
and their health." Whereas the cost to produce marijuana under the 
old system ranged from $0.50 to $2 per gram, the cost under the new 
regime would be $8 to $12 per gram, they said.

A judge granted a temporary injunction, allowing those who had 
previously been allowed to possess and grow marijuana under the old 
system to keep doing so, at least until the constitutional challenge 
was heard. The trial is set to begin Feb. 23.

For the 23 commercial producers currently licensed in Canada, the 
injunction has meant a smaller pool of potential customers. Under the 
old regime, there were roughly 35,000 Canadians licensed to possess 
marijuana. Commercial producers currently report having about 14,000 clients.

"The legal challenge has cast a shadow over the entire policy 
approach," said UBC business professor Werner Antweiler. "As is true 
for any business, uncertainty is not good for business."

But one upside to the injunction is that it has afforded licensed 
producers time to steadily grow their production and customer base, 
the industry association said.

Since the system overhaul took effect April 1 last year, commercial 
producers have faced other setbacks.

On the eve of the changeover, RCMP seized shipments of medical 
marijuana products at a B.C. airport that were destined for two 
Ontario commercial producers, saying that the shipments contained 
items that did not match what was outlined in government paperwork.

Between April and August, Health Canada recalled marijuana products 
from three companies, due to discoveries of mould and bacteria beyond 
acceptable limits, and questionable production practices.

In November, Health Canada sent warning letters to commercial 
producers that their advertising must be limited to basic 
information, such as brand name, cannabinoid content and price per 
gram. Any therapeutic claims, such as saying that a product relieves 
pain, is forbidden. Even describing the taste as "earthy" or "sweet" 
is off-limits.

Health Canada says all companies have complied. The industry says the 
ad rules do level the playing field, but some companies are not 
thrilled about having to sanitize their ads.

"Because of the unique nature of this product, the many different 
varieties and scents, etc., it is important for patients to have 
access to appropriate amounts of information," said Neil Closner, CEO 
of MedReleaf Corp., in Markham, Ont.

Patients can call a company for more information or consult doctors. 
But "in this age of the Internet, most people just want to be able to 
review available products and suppliers online," Closner said.

Despite the ongoing challenges, some companies say they are meeting 
targets. Keelan Green, a spokesman for Toronto-based Mettrum Ltd., 
said the company reached maximum capacity in July. Health Canada 
subsequently approved a second production licence allowing it to grow 
an additional 9,000 marijuana plants and take on new customers.

Toronto-based Bedrocan said in a news release last month that it 
expects to complete a 52,000-square-foot production facility soon 
that will allow it produce domestically. It currently imports medical 
marijuana from a partner in the Netherlands.

Canada's move from personal production to commercial production was 
the right move, said Antweiler, the UBC professor.

"It is easier to regulate and monitor larger producers who can put 
into place necessary quality control measures and security measures, 
rather than smaller producers who cannot afford easily to put 
appropriate measures into place," he said.
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MAP posted-by: Jay Bergstrom