While all forms of cannabis are not yet legal in Australia, the country has a growing market for medical marijuana and hemp, with many companies producing, researching and exporting products derived from the plant.
Medical cannabis was legalized under federal law in 2016, and the export of cannabis from Australia was legalized in 2018. The only state to date to have legalized recreational use is the Australian Capital Territory, which legalized it in 2020. However, the laws are fairly restrictive, as recreational cannabis cannot be purchased in the state and must be grown by users.
The country's medical cannabis market has been steadily expanding in size and scope. In fact, a survey of 1,600 medical cannabis users conducted in 2021 found that 37% of respondents use legally prescribed cannabis, compared to just 2.7% in 2018. More recently, a 2023 survey found that 50% of Australians support the legalization of the right to own six individual cannabis plants, with only 31% of those surveyed opposed to such laws.
There are ASX-listed Australian cannabis companies operating in this sector, producing products such as medicines, flower and hemp products, and there are also ASX-listed cannabis companies producing recreational cannabis in other countries.
Here, Investing News Network presents the top 10 cannabis stocks by market cap on the ASX. Australian cannabis stocks are listed in order from largest to smallest market cap, based on data collected on 03/09/2024 using TradingView's stock screener.
1. Botanix Pharmaceuticals (ASX:BOT)
Market cap: AUD 751.17 million, share price: AUD 0.145
The largest ASX-listed medical cannabis company is Botanix Pharmaceuticals. Based in Perth, Western Australia, the biopharmaceutical company specialises in cannabinoid-based dermatology treatments. The company says its proprietary Permetrex technology allows its products to penetrate the skin and treat skin conditions from below the surface.
The company's flagship product is Sofdra, which is intended to treat axillary hyperhidrosis, or excessive sweating. Sofdra was approved in Japan in 2020 under the name Exclock, and was also approved by the U.S. Food and Drug Administration (FDA) in June 2024.
Botanix's product pipeline also includes multiple drug candidates that harness the anti-inflammatory and antibacterial properties of synthetic cannabidiol for the treatment of moderate to severe acne, rosacea and atopic dermatitis. Antibacterial solutions are also in development.
2. Neurotech (ASX:NTI)
Market cap: AUD 72.25 million, share price: AUD 0.069
Neurotech International is bringing cannabis-based medicines to market through clinical trials with a focus on Autism Spectrum Disorder (ASD). The company's lead treatment is NTI164, a cannabis-based medicine containing a high concentration of the cannabinoid CBDA, along with other trace cannabinoids. The drug is being developed for the treatment of a range of neurological disorders in children.
As reported in July 2024, a Phase I/II study of the drug found that children with ASD who took NTI164 for eight weeks had reduced levels of anxiety and depression. This follows an April 2024 report that results from the NTIASD2 study “achieved its primary endpoint of improvement in illness severity compared to placebo, and also achieved improvements in key secondary endpoints related to clinical improvement, adaptive behavior, and socialization.”
Neurotech has also applied for FDA orphan drug designation for NTI164 to treat pediatric autoimmune neuropsychiatric disorders related to streptococcal infections and pediatric acute-onset neuropsychiatric syndrome, and to treat Rett syndrome, a rare genetic neurodevelopmental disorder.
3. IDT Australia (ASX:IDT)
Market cap: AUD 49.61 million, share price: AUD 0.115
Contract pharmaceutical manufacturer IDT Australia is licensed to manufacture active pharmaceutical ingredients and finished dosage forms for pharmaceutical and therapeutic drugs. The licence covers medicinal cannabis products for domestic and international markets.
Indeed, IDT plays a vital role in Australia's medical cannabis supply chain. The company's specialist services include the manufacture of solid oral and sterile liquid dosage forms in high-CBD and high-THC options, as well as resin extraction. The company's in-house analytical laboratory offers a range of testing and stability services in accordance with current Good Manufacturing Practices (cGMP).
“We have leveraged our extensive cGMP and specialty pharmaceutical experience to develop superior medical cannabis products that exceed current regulatory expectations,” the company's website states.
4. Vitura Health (ASX:VIT)
Market cap: AUD 46.07 million, share price: AUD 0.079
Vitura Health, formerly Cronos Australia, is a digital health platform business connecting patients, doctors, pharmacists and suppliers across the digital health ecosystem. The company has established a strong presence in the medical cannabis sector in Australia across a number of verticals and established brands.
Vitura Health subsidiary Burleigh Heads Cannabis sells medical cannabis products through its CanView online platform, where patients can try medical cannabis products and doctors and pharmacists can write prescriptions to administer treatment.
The company operates CDA Clinics, a network of clinics staffed with medical professionals who provide consultations on plant-based medicines, including medical cannabis, and it also owns a 75.5% stake in Cannadoc, which offers nationwide remote medical consultations to patients seeking medical cannabis.
5. Little Green Pharma (ASX:LGP)
Market Cap: 27.76 million AUD, Share Price: 0.082 AUD
Little Green Pharma is a medical cannabis company focused on affordability for patients. The company was “Australia's first cannabis medicine manufacturer and exporter.” The company sells branded and white label products sold in ingestible oil and flower form, grown and manufactured in Australia and Denmark.
The company's products are sold in Australia and to companies in Europe, including Germany, the UK and France, and Little Green Pharma plans to target other European markets.
In its quarterly report released in July 2024, Little Green Pharma announced that revenue was A$7.3 million, up 12% compared to the same quarter last year. Part of these increases were due to a 17% increase in oil sales and a 23% increase in vaporizer sales.
During this period, the company also completed its first commercial shipment to France. Little Green Pharma is currently working on developing new brands and product formulations, with multiple releases planned for the remainder of 2024.
6. ECS Botanics (ASX:ECS)
Market Cap: AUD 21.91 million, Share Price: AUD 0.016
Victoria-based ECS Botanics describes itself as Australia's largest B2B medical cannabis grower and manufacturer. The company produces GMP certified products in its Australian Therapeutic Goods Licensed facility, using regenerative organic farming practices and renewable energy sources.
In May 2024, ECS Botanics signed a one-year supply agreement with Elite Medical Solutions, which includes a guaranteed annual minimum order value of A$380,000 with an automatic renewal option. The agreement will see Elite Medical Solutions oversee the retail distribution of ECS's RAP Med brand, which is targeted to military veterans and includes softgel capsules and oral liquid.
In its quarterly report released on July 30, the company highlighted a record biomass harvest of 6.8 tonnes, up 62 percent from last year. Revenue for the period was A$4.5 million, down slightly from A$4.8 million in the same period last year but up 12 percent from the previous quarter.
7. Can Group (ASX:CAN)
Market Cap: 17.76 million AUD, Share Price: 0.037 AUD
Cann Group is a medical cannabis grower and manufacturer, selling its products throughout Australia and internationally. The agri-technology company focuses on research, genetics and breeding to create high quality products for the medical market.
In 2017, Cann Group became the first company to receive a cannabis research licence from Australia's Drug Control Agency. The following month, it also became a new first to receive a medical cannabis cultivation licence from the agency.
At its Mildura, Victoria facility, Cann Group produces a range of medical marijuana products, including Satipharm CBD sleep capsules, as well as cannabis flower and cannabis resin for patients with a range of conditions from multiple sclerosis to chronic pain. The company has the capacity to produce 12,500 kilograms of dried cannabis flower per year for both domestic and international medical cannabis markets.
8. Argent Biopharma (ASX:RGT)
Market cap: AUD 16.46 million, share price: AUD 0.33
Argent Biopharma is a biopharmaceutical company developing nanotechnology-based drug therapies with a focus on central nervous system and immune therapy. Its investigational medicines are prescribed through early patient access programs in the UK, US, Europe and Australia.
Its flagship products include CannEpil for refractory epilepsy and cerebral palsy, and CimetrA for acute lung injury and ARDS, which are currently generating revenue. Its therapeutic drug CogniCann is currently in clinical trials to improve quality of life for dementia and Alzheimer's disease patients.
9. EcoFibre (ASX:EOF)
Market Cap: 10.74 million AUD, Share Price: 0.027 AUD
Hemp-related stocks are also listed on the ASX. Ecofibre, an advanced manufacturing technology company with operations in the US and Australia, has three vertically integrated businesses: sustainable polymers and natural materials, natural healthcare, and hemp seed genetics.
Through one of the world's largest collections of hemp seed genetics, EcoFiber Genetics supplies seed genetics to the hemp fiber and grain industries in both the United States and Australia. EOF Bio, a majority-owned U.S.-based clinical-stage biotechnology company, produces cannabinoid-based medicines with an initial focus on women's health and endometriosis.
Through Ananda Health, a leading US manufacturer of cannabinoid-based health products for humans and pets, the company offers CBD products in Australia and the US targeting sleep disorders, pain, anxiety, endometriosis and other gynecological conditions.
10. Altea (ASX:AGH)
Market cap: AUD 8.11 million, share price: AUD 0.02
Althea is an international grower, supplier and exporter of pharmaceutical-grade medical marijuana. The company operates in legal cannabis markets around the world, including North America, Europe and Australia.
Althea received a cultivation license for medical cannabis in 2018. The company operates in regulated medical cannabis markets including Australia and the UK. After receiving approval to sell cannabis products in Germany in late 2020, Althea became Germany's first commercial supplier of Australian-made medical cannabis products.
In its 2024 financial year report, Althea announced revenues would reach A$30.36 million, up 21% on 2023, with the company reporting “strong performance in key markets including the UK and Australia”.
This is an updated version of an article originally published in Investing News Network in 2019.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interests in any of the companies mentioned in this article.
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