QUEENSLAND Bauxite (ASX: QBL), one of Australia's cannabis pioneers, has partnered with Algae.Tec (ASX: AEB) to research and develop cannabinoid-based medicines for animals.
Queensland Bauxite's subsidiary Medical Cannabis Limited (MCL) will help Algae.Tec cultivate the plants which will be used to develop stock and veterinary medications.
Medical products including cannabis oil have previously been used help alleviate cancer symptoms in animals, as well as treatment for pain, inflammation and other end-of-life health issues.
The medications have also been used to treat mental health issues including anxiety and distress in animals.
The arrangement between MCL and Algae.Tec seeks to combine resources, experience and technical knowledge to help fast track research in several fields of animal health care.
The international market for veterinary supplies is predicted to be a multi-billion dollar industry and according to Queensland Bauxite, product development is far less expensive than for humans.
"There is a massive demand in the animal industry for suitable and safe drugs for the transport and general treatment of animals whether for anxiety or pain related problems," said the company in a release.
"Appropriate cannabis products is believed to be the perfect solution, which Algae.Tec intends to introduce to and provide this huge industry and its demand."
Algae.Tec's goal is to be actively developing medical cannabis products for animal use in 2018, and executive chairman and managing director Malcolm James says partnering with MCL is a coup to reaching it.
"There's no doubt we have secured one of the most coveted assets in the medical cannabis industry, being our own exclusive lawful and licensed cannabis seed bank for our further business development," says James.
"We are most appreciative to MCL for this contribution. We are adamant that 2018 will be an extremely busy and fruitful year with many plans being put into action."
Managing director of Queensland Bauxite Andrew Kavasilas says that by working with animals, the companies are also taking a crucial step toward drug development for humans.
"We're all aware that all genuine drug development involves animal testing," says Kavasilas.
"There is definitely no better place to start the journey than to look at large stock, other farmed livestock and companion animal drug development which will produce an immense amount of data to feed into subsequent human applications."
As part of its partnership with Algae.Tec, MCL will receive shares to become a 19.99 per cent shareholder in the company.
Photo courtesy of Captain Cruise - Instagram: @captaincuise
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support