Pubdate: Fri, 12 Aug 2016
Source: National Post (Canada)
Copyright: 2016 Canwest Publishing Inc.
Contact: http://drugsense.org/url/wEtbT4yU
Website: http://www.nationalpost.com/
Details: http://www.mapinc.org/media/286
Author: Peter Koven
Page: FP1

MEDICAL POT USERS CAN GROW THEIR OWN

Licensed producers put in limbo

TORONTO* The federal government said Thursday that it will allow
medical marijuana patients to grow their own pot, a move viewed as a
band- aid solution before broader legislation is introduced next year.

The decision creates uncertainty for Canada's licensed medical
marijuana producers, who are currently the only legal source of
medical pot. However, it is not viewed as a game changer for them, and
some even see it as a business opportunity. Most stock prices in the
pot sector declined on Thursday, but only modestly.

Health Canada announced that beginning Aug. 24, patients will be
allowed to produce a "limited amount" of cannabis for their own
purposes, or designate someone to grow it for them.

It is highly unlikely that Ottawa wanted to go down this path, as it
will make the sector much tougher to regulate. However, it had no
choice. In February, a federal court ruled that the current medical
marijuana regulations restrict access to cannabis, and patients should
have the right to grow their own. The court gave the government six
months to adjust the rules.

"Health Canada is confident that these new regulations provide
reasonable access to cannabis for medical purposes and address the
issues identified by the federal court," Jacqueline Bogden, assistant
deputy minister for cannabis legalization and regulation, said on a
conference call.

In the spring of 2017, the federal government plans to introduce its
defining marijuana legislation, in which it wants to legalize and
control access to recreational pot. The regulations announced Thursday
provide a temporary solution for the industry until the new rules come
into place.

"I don't think ( authorities) like or support this system, but they're
enduring it for the next eight or nine months," Bruce Linton, the
chief executive of medical pot producer Canopy Growth Corp., said in
an interview.

Health Canada also reiterated it is completely opposed to illegal
dispensaries, which continue to operate despite a recent police
crackdown in Toronto.

The new regulations could encourage some medical marijuana patients to
switch from the licensed producers to home growing.

But Linton predicted there would be virtually no impact on his
business. He said customers like getting a cheap, reliable product in
the mail and noted that the people who prefer home growing are
probably doing it already.

"The ' grow it yourself ' thing has a historic attachment to a
smallish group," he said.

Regardless, the pot companies are already looking at ways to take
advantage of the new rules. Canopy announced it will help customers
grow pot at company-owned facilities. Aurora Cannabis Inc. plans to
provide kits to help people grow at home.

"We've always supported home-grow," said Cam Battley, senior vice-
president at Aurora. "We're all in favour of increasing access (to
medical marijuana)."

Home-grow was the norm for medical marijuana patients until 2014, when
Health Canada introduced rules requiring them to buy pot from licensed
producers. Patient growth has accelerated since then, with about
70,000 to 80,000 people signing onto the program. That suggests
doctors and patients are generally more comfortable with the licensed
producers than home-growing.

Thursday's decision from Health Canada still leaves some uncertainty
around distribution. Currently, licensed producers sell all of their
products through the mail. But Canadian pharmacies are lobbying
heavily to take control of distribution.

Health Canada said it is "continuing to study" pharmacy distribution,
but did not elaborate.
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