Please ensure Javascript is enabled for purposes of website accessibility

MediPharm Labs Signs Supply Agreement With Online Medical Cannabis Portal

By Jim Crumly – Feb 20, 2020 at 2:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

MediPharm will supply Medical Cannabis by Shoppers with oils, gel caps, and topicals.

MediPharm Labs (MEDIF 4.09%), a Canadian specialist in the extraction of pharmaceutical-quality oils and concentrates from cannabis, announced a supply agreement with Medical Cannabis by Shoppers, the online cannabis portal of Canada's leading drug store retailer.

Under the agreement, MediPharm will begin within two months to supply Medical Cannabis by Shoppers with a variety of concentrate-based products, starting with formulated oils. Other derivative products such as gel caps and topical creams will ship when they become available. The agreement is for three years, with an option to renew for an additional two years.

Bottle and dropper of cannabis oil, with cannabis plant in the background.

Image source: Getty Images.

Under current regulations, pharmacists in Canada can't dispense medical cannabis from drug stores, so Shoppers Drug Mart, a chain of more than 1,300 retail pharmacies, established an online portal and obtained a license from Health Canada for it to sell medical cannabis products. In December, the retailer expanded Medical Cannabis by Shoppers to all of that county's provinces and territories. 

MediPharm is a profitable and rapidly growing company that extracts concentrates from cannabis and sells the derivatives as either wholesale oil or as finished products under private-label or white-label agreements to companies that retail them under their own brands. The company has supply agreements with Canopy Growth, Cronos Group, and seven other licensed cannabis providers. In the most recent quarter, revenue grew 38% over the previous quarter and the company earned $0.02 per share.

Jim Crumly owns shares of Canopy Growth, Cronos Group Inc., and MediPharm Labs. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MediPharm Labs Corp. Stock Quote
MediPharm Labs Corp.
$0.05 (4.09%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.