The Althea Group Holdings Ltd (ASX: AGH) share price is on watch this morning after the company announced it has launched online sales of medicinal cannabis. Patients can now order products online via the ‘Althea Concierge’ platform and have them delivered directly to their doors. This eliminates the need to visit a doctor or pharmacy in order to obtain the treatment on an ongoing basis.
What does Althea do?
Althea was founded in 2017 in Melbourne and holds licenses to import, cultivate, produce and supply medical cannabis. The company has seen strong growth in customer numbers since launching. By the end of March this year, Althea had supplied medical cannabis to over 5,000 Australian patients. The company also has a manufacturing facility in Canada, Peak Processing Solutions. This facility produces ‘Legalisation 2.0’ products such as edibles, beverages, and cosmetic applications.
How do online cannabis sales work?
The Althea Concierge platform, which is a TGA registered medical device, has been comprehensively updated to facilitate online sales and interactive, customisable treatment plans. Used in conjunction with telemedicine, the platform allows doctors to prescribe Althea medical cannabis products. Patients pay for their prescriptions online and medication is then delivered directly to their doors. This then eliminates the ongoing need for multiple visits to doctors and pharmacies .
The new interactive treatment plan feature allows doctors to issue personalised treatment plans directly to patients’ phones. This provides patients with customised dosage reminders and allows them to record their usage and provide ongoing feedback to their doctors. Anonymous patient symptom data will contribute to a body of evidence in support of Althea medications.
Althea CEO, Josh Fegan said, “We are very excited about this latest update to the Althea Concierge platform. The ability for contactless sales is probably the biggest development yet for medicinal cannabis in Australia”. Althea plans to roll out the updated version of its Concierge platform in the United Kingdom, where the company launched in June 2019, in the coming months.
What is the outlook for the Althea share price?
Althea has been expanding rapidly since its inception. It has gained significant numbers of Australian patients and prescribers as well as launched in the UK. The company has also commenced manufacture in Canada and begun supplying products to Germany. It certainly appears as if Althea is set to make its mark on the medicinal cannabis industry. In the first half of FY20, the company reported a 963.8% increase in revenues. Investors are eagerly awaiting full year results to see if Althea can continue its trajectory.