Medicinal cannabis: First NZ company gains approval to sell product with THC psychoactive compound

Helius hopes clearing the regulatory hurdles will pave the way for entry into the European market. Photo / Supplied

Medicinal cannabis users will soon have the option of buying New Zealand-made products containing the psychoactive compound tetrahydrocannabinol (THC).

Helius Therapeutics this month became the first New Zealand company to receive Good Manufacturing Practice (GMP) certification from MedSafe to produce THC extracts and manufacture products containing THC.

A week later, the Ministry of Health’s Medicinal Cannabis Agency gave the Auckland-based company approval to sell two products containing THC.

The drug, which is typically used to soothe pain and help those struggling to sleep or suffering from depression or anxiety, must be prescribed by a doctor.

For Helius, clearing regulatory hurdles paves the way for its expansion both domestically and overseas.

For consumers, the company’s pitch is that domestic production avoids the risk of supply chain issues disrupting imports, as was the case in 2022.

A pharmacist the Herald spoke to also hoped increased competition spurred by Helius’ expansion into the market would bring down the prices of liquid THC products, which currently cost users around $100 to $200 a month.

Verification of two of Helius’ products means there are now seven liquid oral cannabis products containing THC that meet minimum quality standards under the Misuse of Drugs (Medicinal Cannabis) Regulations 2019.

Two of these products are made by Canadian-headquartered company Tilray. The other three are imported by Waikato-based, NZX-listed company Cannasouth.

Cannasouth’s website says it’s going through the process of getting its local facilities GMP licensed so it can start production in New Zealand.

Helius began this process, which its chief executive Carmen Doran described as “exhaustive”, in 2018.

“It’s taken a while to get the product to market,” she said.

“But if we compare that to other medicines that can take five or 10 years to come to market, you’ll see that actually we’ve moved at a pretty quick pace with brand new regulations.”

Doran hoped that because European authorities recognise New Zealand’s certification, satisfying regulators here would make it easier for the company to start exporting to Europe. She said the plan was to do this in 2023.

Accordingly, she expected Helius’ 25-person team to grow “pretty quickly”.

Doran said there was room for this expansion at the company’s 8800sq m East Tamaki facility, where it grows cannabis and extracts the active compounds used in its products.

Helius has already had four products verified by the Medicinal Cannabis Agency as meeting quality standards. Approval of the THC products brings its offering up to six.

Doran said demand for medical cannabis had risen in New Zealand over the past year.

“Patients and doctors are trying it and it’s working really well, and also getting over some of the stigma around the products,” she said.

Helius was founded in 2018 by former ad man Paul Manning, alongside local entrepreneurs Gavin Pook and JP Schmidt.

Software engineer and rich-lister Guy Haddleton is one of its major backers. Haddleton has an 86 per cent stake in the company (via two companies he owns).