Medical marijuana producer MedReleaf said yesterday it has signed an agreement with Shoppers Drug Mart to become a medical cannabis supplier to the chain.
The announcement comes on the heels of Canadian medicinal cannabis supplier Aphria’s agreement to supply Shoppers Drug Mart with medical cannabis to be sold online; Canadian regulations do not currently allow for the sale of medical cannabis in retail pharmacies.
With more than 1,200 stores, the drug store chain is the largest in Canada, and it had applied for a license to sell medical marijuana before.
Galen Weston, executive chairman and president of Loblaw Cos., Shoppers Drug Mart’s parent company, had previously expressed his support for the idea. At Loblaw’s annual meeting in 2016, he said that pharmacies are in the best position to dispense the drug safely and effectively.
“We’re an industry that is extremely effective at managing controlled substances,” Weston stated, adding that allowing in-store marijuana dispensing “gives pharmacists the opportunity to work directly in real time with patients as opposed to doing it through the mail, working on their doses and making sure it actually has the therapeutic effect that it is intended to have.”
If given the green light, the Shoppers Drug Mart-Aphria deal would last five years with a requirement for the drug store to purchase a minimum amount of cannabis every year, according to Aphria chief executive officer Vic Neufeld.
“We have an impeccable record cultivating and producing high-quality, medical-grade cannabis,” Neufeld said in a statement. Aphria was one of the first firms granted a Health Canada license to cultivate and sell medical cannabis when the department first launched its cannabis regimen in 2013.
Analysts have estimated the potential value of the recreational cannabis market in Canada at upwards of $5 billion ($3.75 billion U.S.).