Pubdate: Wed, 28 Jan 2015
Source: Regina Leader-Post (CN SN)
Copyright: 2015 The Leader-Post Ltd.
Contact: http://www.leaderpost.com/opinion/letters/letters-to-the-editor.html
Website: http://www.leaderpost.com/
Details: http://www.mapinc.org/media/361
Author: Douglas Quan
Page: A5

FLEDGLING MEDICAL POT INDUSTRY HIT BY SETBACKS

Almost a year after the federal government revamped the way medical 
marijuana is produced and distributed in Canada - moving from 
home-based operations to large-scale commercial ones - the fledgling 
industry continues to encounter growing pains.

A trial set to begin next month in Federal Court will hear patients 
argue that the price of marijuana charged by commercial producers is 
too high, depriving them of medicine to treat serious ailments. Until 
a decision is made, individuals who previously held licences to 
possess and grow their own marijuana have been allowed to continue doing so.

Commercial producers have faced other challenges, including 
restrictions on how they advertise their products; maintaining 
adequate supplies; and responding to product recalls.

In a statement, the Canadian Medical Cannabis Industry Association, 
acknowledged some of the challenges but says the industry remains optimistic.

"Previous stigma with cannabis has placed the industry under a 
microscope," the statement said. "However, there have also been 
success stories at the company level and at the industry level."

Under the old regime, patients could grow their own pot, have a 
designated person do the growing, or buy from Health Canada. But the 
system was rife with abuse, prompting federal regulators to switch to 
a new system last year, which restricts production to licensed 
commercial producers and does not allow patients to possess more than 
150 grams of dried marijuana at any time.

A group of B.C. patients sued the government in Federal Court, 
arguing that the new rules were overly restrictive and would make 
marijuana unaffordable, forcing them to "choose between their liberty 
and their health." Whereas the cost to produce marijuana under the 
old system ranged from $0.50 to $2 per gram, the cost under the new 
regime would be $8 to $12 per gram, they said.

A judge granted a temporary injunction, allowing those who had been 
allowed to possess and grow marijuana under the old system to keep 
doing so, at least until the constitutional challenge was heard. The 
trial is set to begin Feb. 23.

For the 23 commercial producers licensed in Canada, the injunction 
has meant a smaller pool of potential customers. Under the old 
regime, there were roughly 35,000 Canadians licensed to possess 
marijuana. Commercial producers currently report having about 14,000 clients.

"The legal challenge has cast a shadow over the entire policy 
approach," said UBC business professor Werner Antweiler. "As is true 
for any business, uncertainty is not good for business."

But one upside to the injunction is that it has afforded licensed 
producers time to steadily grow their production and customer base, 
the industry association said.

Since the system overhaul took effect April 1 last year, commercial 
producers have faced other setbacks.

On the eve of the changeover, RCMP seized shipments of medical 
marijuana products at a B.C. airport that were destined for two 
Ontario commercial producers, saying that the shipments contained 
items that did not match what was outlined in government paperwork.

Between April and August, Health Canada recalled marijuana products 
from three companies because of discoveries of mould and bacteria 
beyond acceptable limits, and questionable production practices.

In November, Health Canada sent warning letters to commercial 
producers that their advertising must be limited to basic 
information, such as brand name, cannabinoid content and price per 
gram. Any therapeutic claims, such as saying that a product relieves 
pain, is forbidden. Even describing the taste as "earthy" or "sweet" 
is off-limits.

Health Canada says all companies have complied. The industry says the 
ad rules do level the playing field, but some companies are not 
thrilled about having to sanitize their ads.

"Because of the unique nature of this product, the many different 
varieties and scents, etc., it is important for patients to have 
access to appropriate amounts of information," said Neil Closner, CEO 
of MedReleaf Corp., in Markham, Ont.

Patients can call a company for more information or consult doctors. 
But "in this age of the Internet, most people just want to be able to 
review available products and suppliers online," Closner said.

Some companies are also complaining that Health Canada is taking too 
long to approve licence applications or expansions of their 
production facilities.

Zack Hutson, a spokesman for Nanaimo, B.C.-based Tilray, says the 
company has encountered "significant delays" waiting for Health 
Canada to inspect and approve 22 additional grow rooms, representing 
about 60 per cent of its production capacity.

Sean Upton, a Health Canada spokesman, said that, as of late 
December, there were just over 300 licensed-producer applications 
awaiting approval.

"Health Canada continues to monitor the program very closely to 
ensure reasonable access to marijuana for medical purposes is 
provided while also protecting public health, safety and security," he said.

Despite the challenges, some companies say they are meeting targets. 
Keelan Green, a spokesman for Toronto-based Mettrum Ltd., said the 
company reached maximum capacity in July. Health Canada subsequently 
approved a second production licence allowing it to grow an 
additional 9,000 marijuana plants and take on new customers.

Toronto-based Bedrocan said last month that it expects to complete a 
52,000-square-foot production facility soon that will allow it 
produce domestically. It currently imports medical marijuana from a 
partner in the Netherlands.

Canada's move from personal production to commercial production was 
the right move, said Antweiler, the UBC professor.

"It is easier to regulate and monitor larger producers who can put 
into place necessary quality control measures and security measures, 
rather than smaller producers who cannot afford easily to put 
appropriate measures into place," he said.
- ---
MAP posted-by: Jay Bergstrom