Medicox Signs Main Contract with Cultiva for Medical Cannabis Research and Cultivation Project in Laos

[Asia Economy Reporter Jang Hyowon] MedicoX, a KOSDAQ-listed company, announced on the 23rd that it has signed a main contract with Cultiva LLC to jointly proceed with a medical cannabis business in Laos.

Through this contract, MedicoX will be responsible for attracting investment for the medical cannabis research and cultivation facility in Laos, which Cultiva began constructing earlier this year. MedicoX will secure the domestic exclusive distribution rights for the medical CBD oil produced at the facility, as well as the overseas regional rights for health food products.

The medical cannabis research and cultivation facility in Laos is expected to be completed in the first half of next year, covering a total area of 36,200 square feet (approximately 1,017 pyeong). The company anticipates that essential institutions for the research and cultivation facility will be prepared first, enabling production of about 5 tons of medical cannabis and approximately 200 liters of cannabidiol (CBD), the active hemp component, starting this year. When all facilities are completed next year, production capacity could expand to 100 tons of medical cannabis and 4,000 liters of CBD, the company explained.

MedicoX aims to obtain approval from the Korean Ministry of Food and Drug Safety and to supply high-quality CBD products to centers such as the Korea Rare Essential Drug Center as its primary distribution goal. Additionally, having secured overseas health food product rights using medical cannabis, the company plans to concretize global market distribution.

Oh Daehwan, CEO of MedicoX, stated, “Since the price of 100ml of CBD oil is about 1.6 million KRW based on non-reimbursement standards, MedicoX will secure a medical cannabis production system capable of achieving sales of approximately 3.2 billion KRW this year and about 64 billion KRW next year when all systems are fully established. Especially, since we have directly secured production and distribution systems locally in Laos, we expect to have much better price competitiveness compared to the US and Canada, where the medical cannabis import-export industry is already active.”

Cultiva, which is partnering with MedicoX in this joint business, focuses on medical cannabis research and development, as well as production and application of various bio products including crop cultivation, oil, beverages, textiles, and supplements. Last year, Cultiva began jointly promoting the medical cannabis business with the Traditional Medicine Research Institute under the Laos Ministry of Health and Welfare, and received local business rights from the Laos government for the entire cycle of medical cannabis crops including research, experimentation, and cultivation.