Pubdate: Wed, 28 Jan 2015
Source: Vancouver Sun (CN BC)
Copyright: 2015 Postmedia Network Inc.
Contact:  http://www.canada.com/vancouversun/
Details: http://www.mapinc.org/media/477
Author: Douglas Quan
Page: B2

FLEDGLING INDUSTRY HIT BY SERIES OF SETBACKS

Constitutional challenge, advertising restrictions, product recalls 
have all had an impact

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.
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MAP posted-by: Jay Bergstrom