Shares in the Little Green Pharma Ltd (ASX: LGP) are rocketing higher today. This comes after the company announced it has won a contract award with the French Government.
During morning trade, the Little Green Pharma share price reached within a whisker of its all-time high of 68 cents. Its shares topped out at 67 cents, before pulling back to 64 cents, up 10.3%.
What did Little Green Pharma announce?
In today's release, Little Green Pharma advised that it has been selected as the primary supplier of medicinal cannabis oils for a national French medicinal cannabis trial.
The new appointment will see the company partner up with French leading pharmaceutical distributor, Intsel Chimos.
Little Green Pharma will begin a 2-year trial to supply its medicinal cannabis products for the treatment of clinical conditions. The study will look at the efficacy and safety of up to 3,000 patients undertaking medicinal cannabis therapy.
The company highlighted that as a result of being selected for the trial, it will create a significant first-mover advantage. The study is currently the only pathway for medicinal cannabis to be supplied to the French market.
If successful, Little Green Pharma estimates that the legalised medicinal cannabis sector could potentially be worth €4 billion (AUD$6.3 billion) annually.
Words from the managing director
Little Green Pharma managing director Fleta Solomon welcomed the new deal, saying:
We are very proud of our partnership's success in the French national tender and see this tender win as strong evidence of LGP successfully implementing its export-led global sales strategy and demonstrating the benefits of Australian Good Manufacture Practices (GMP) quality manufacturing in global pharmaceutical markets.
We believe the trial will demonstrate the partnership's credibility and reliability to the French medical community, giving both companies a significant competitive advantage once medicinal cannabis is legalised in France.
…We trust this marks the beginning of a long and rewarding partnership as we look to grow and cement our reputation amongst French patients and prescribers as a world-class medicinal cannabis supplier.
How has the Little Green Pharma share price performed?
The Little Green Pharma share price has travelled 82% higher since listing on the ASX boards in February 2020.
In March last year, the company's shares took a dive to 17 cents from the impacts of COVID-19. However, in the following months, its shares have rebounded to now be within reach of breaking its all-time high record.
