Midwest Pharmaceutics, the manufacturing subsidiary of medicinal cannabis company Cannasouth, has signed a three-year manufacturing agreement with Harker Herbal Products.
Cannasouth made the announcement to the New Zealand Stock Exchange (NZX) earlier on Monday and said the agreement will establish Midwest Pharmaceutics as Harker’s exclusive manufacturer and confirmed at the same time that Harker is a “priority customer” of the pharmaceutical company.
Cannasouth chief executive Mark Lucas said Harker Herbals had been a “key” customer of Midwest since 2014.
“We’re pleased to have this new manufacturing agreement to underpin our business relationship,” he said.
Harker Herbals is a herbal tonic brand that also deals in supplements and other wellness products.
The company has a flagship store in the Commercial Bay retail precinct in Auckland’s CBD. Its products are extensively distributed via pharmacies and natural health stores throughout NZ, as well as being exported globally.
Midwest Pharmaceutics manufactures liquid supplements and specialises in the manufacture, re-packing and wholesale supply of pharmaceutical raw materials, actives, and excipients.
Its products are used by compounding pharmacies, hospitals, universities, and pharmaceutical and veterinary manufacturers.
Lucas said Midwest Pharmaceutics was currently operating at capacity and would have to scale up to bring Harker Herbals on board because the tonic company was planning to “significantly” increase its export sales.
“We’re excited to be able to support Harker Herbals,” he said.
Cannasouth shares were flat at 36 cents in mid-afternoon trading.