Articles > Canadian Licensed Producers Continue To Form Strategic Partnerships With Leading Pharmacies
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Earlier this week, Canadian cannabis stocks traded higher after Aphria Inc. (APH.TO) (APHQF) announced that it has secured an agreement to become a medical cannabis supplier to Shoppers Drug Mart.
When this news was reported, we highlighted the significance of the agreement and explained how it would be a catalyst for the entire Canadian cannabis sector. Although we expected to see other Canadian licensed medical marijuana producers enter similar agreements, we did not expect to see a similar agreement announced so soon.
CanniMed to Distribute Cannabis via a Pharmacy Network
After the market closed yesterday, CanniMed Therapeutics Inc. (CMED.TO) CMMDF) announced that it has entered a definitive agreement with PharmaChoice for supply of CanniMed’s herbal, oils and oil derivative cannabis products.
PharmaChoice has more than 750 pharmacy locations across Canada and has committed exclusively to CanniMed as its sole supplier of cannabis products, subject to CanniMed meeting certain product and volume requirements.
We are favorable on this development and expect to see the shares move higher today. CanniMed will start supplying its products to PharmaChoice once Health Canada approves the distribution of medical cannabis products through pharmacies.
An Attractive Trend for Investors
Over the next few months, we expect to see Canadian licensed medical marijuana producers secure distribution agreements like the one announced by Aphria and CanniMed and we are bullish on this trend.
Today’s development significantly enhances CanniMed’s fundamental story and we remain favorable on the shares. We are interested in seeing how this announcement impacts Aurora Cannabis’ (ACB.TO) (ACBFF) planned acquisition of CanniMed and will keep an eye on how the shares trade off this news.
Over the last month, CanniMed has been in the news quite frequently and investors need to keep an eye on this company.