The Creso Pharma Ltd (ASX: CPH) share price has started the week with a bang.
At the time of writing, the cannabis company's shares are up 18% to 23 cents.
Why is the Creso Pharma share price rocketing higher?
Investors have been buying Creso Pharma shares following the release of an announcement in relation to over-the-counter sales of low-dose cannabidiol (CBD) products in Australian pharmacies.
According to the release, Creso Pharma expects to benefit from changes in legislation that mean low-dose CBD products can be sold over-the-counter in Australian pharmacies from this morning.
This follows a decision by the Therapeutic Goods Administration (TGA) to down-schedule low dose CBD preparations from Schedule 4 (Prescription Medicine) to Schedule 3 (Pharmacist Only Medicine).
From today, TGA-approved CBD products containing up to a maximum of 150mg per day can be sold to adults by a pharmacist without a prescription.
Management believes this is a major development for the Australian medicinal cannabis industry and estimates that it provides the company with a market opportunity expected to exceed $200 million per annum.
"Very well placed to capitalise"
Furthermore, it feels the company is very well placed to capitalise on the growing market opportunity due to its existing portfolio of CBD products that are being actively sold in several countries globally. It notes that its flagship CannaQIX 50 product is already available in Australia via prescription, under the LozaCan brand.
The company also has an agreement with sustainable health and lifestyle brand supplier Martin & Pleasance to bring Creso's suite of cannabis-based products to the Australian market.
Creso's Non-Executive Chairman, Adam Blumenthal, commented: "Today is a major milestone for the Australian medicinal cannabis industry, which we anticipate will grow rapidly over the coming months. The TGA's decision to allow the sale of low–dose CBD products to consumers without a prescription provides Creso Pharma with another exciting opportunity to grow in Australia and another potential revenue stream for the Company."
"We will continue to work with Martin & Pleasance to define the specific regulatory pathway for our product in the Australian market and look forward to proving its superiority through the ARTG registration process. "Creso continues to progress a number of growth initiatives in Australia and internationally and looks forward to updating shareholders as developments materialise," he concluded.
