MEDICAL CANNABIS AND CBD - Challenges and opportunities

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MEDICAL CANNABIS AND CBD   1

MEDICAL CANNABIS AND CBD
Challenges and opportunities
Healthadviser
DAC Beachcroft’s Health Adviser publications seek to provide insight,
foresight and thought-provoking features and articles that provide practical
solutions for the issues of the day, for health and social care professionals.
MEDICAL CANNABIS AND CBD             3

FOREWORD
Global interest in medical cannabis is       disasters such as the Thalidomide            MCCS and Campaigner), Professor
booming as legal restraints on               scandal, and the current US opioid crisis,   Andrew Goddard (President of the
production and use are eased and,            urge caution. They want tangible             Royal College of Physicians), Eoin
despite the COVID-19 crisis, this            evidence of safety and efficacy in the       Keenan (Content & Communications
acceleration has continued.                  form of large-scale clinical trials.         Director, Prohibition Partners), Dr Inbar
                                                                                          Maymon-Pomeranchik (founder of
In the UK, following high profile coverage   This report sets out some of the thorny      BioDiligence Partners), Dr Barry Miller
of cases involving children with             ethical, regulatory and legal hurdles the    (Chair of the Medicines Advisory Group
intractable epilepsy, medical cannabis       UK faces in terms of medical cannabis.       the Royal College of Anaesthetists
has been available lawfully in limited       It also touches on recent developments       Faculty of Pain Management), George
circumstances since 1 November 2018.         in the UK relating to cannabidiol (CBD)      McBride (Chief Executive Officer,
Opinion is divided as to whether this        and includes thoughts from experts           Hanway Associates), Marcus Stuttard
change in the law represents an              and campaigners, both in the UK and          (Head of the AIM and UK Primary
important step forward or a missed           abroad, on how one might approach            Markets at the London Stock
opportunity; there is a body of highly       this new and rapidly-expanding field of      Exchange), Melissa Sturgess (Chief
respected medical opinion on each side.      medicine. The medical cannabis market        Executive Officer of Ananda
                                             is expected to keep developing quickly       Developments), Nick Tulloch (Director
Some UK clinicians want to prescribe         in 2021 and beyond, despite the              of Fetlar Capital), and Marion Zammit
more freely. A growing body of public        inevitable hurdles raised by the             (Head of Medical Cannabis Activity at
opinion says there are some areas            Covid-19 pandemic and resulting              Malta Enterprise).
where time-consuming and lengthy             global recession.
trials are unnecessary, most notably for                                                  Jonathan Deverill
conditions where the drug has been           We would like to take this opportunity       Partner, DAC Beachcroft LLP
shown to alleviate symptoms. For these,      to thank our experts: Dr Leon Barron
some experts argue a new set of              (Executive Committee Member – The
prescribing rules need to be formulated.     Medical Cannabis Clinicians Society,
The medical cannabis industry and a          Founder – The Primary Care Cannabis
range of campaign groups also want           Network), Karine Cousineau (Director,
speedier and cheaper access. But             Government Relations and Sustainability,
regulators and the medical                   The Green Organic Dutchman), Hannah
establishment, with an eye to drug           Deacon (a founding member of the

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4    MEDICAL CANNABIS AND CBD

CHAPTER 1.

MEDICAL CANNABIS AND CBD IN THE UK
There are growing calls for wider access to medical cannabis, but a lack of hard
evidence surrounding its safety means many doctors are unwilling to prescribe
without randomised controlled trials.

In November 2018 new UK legislation1       (MS), psychiatric conditions and even         Global growth industry
came into force making cannabis-           chronic musculoskeletal or cancer pain.       While the UK medical cannabis market
derived medicinal products available on    Furthermore, this new route enables           is embryonic, production and research
prescription by a limited number of        the doctors concerned to prescribe            is a global growth industry, with
specialist doctors.                        medicines which have not yet been             entrepreneurs expecting significant
                                           authorised by the UK Medicines and            returns. By 2025 the worldwide
The move meant cannabis changed            Healthcare products Regulatory Agency         medicinal cannabis market is
from a Schedule 1 classification under     (MHRA) – as noted below, only two             projected to be worth anything from
the Misuse of Drugs Act 1971 (MDA)         products, Sativex and Epidiolex, both         £33.64bn2, (according to research firm
– which includes drugs not used            produced by GW Pharmaceuticals,               Research and Markets), to £62.6bn3
medicinally such as LSD and ecstasy – to   have received MHRA marketing                  (according to Prohibition Partners
Schedule 2, which includes opiates like    authorisations so far, following a lengthy,   which provides intelligence on the
morphine and methadone that can be         and expensive, authorisation process.         cannabis market).
prescribed under strict regulations.
                                           The change in law came after ministers        While the UK CBMP industry is small, it
The change was welcomed by patients,       were made aware of the plight of              is significant. In 2010 the MHRA
campaign groups and industry who say       children such as Alfie Dingley, whose         authorised Cambridge-based GW
cannabis-based medicinal products          families had long campaigned to allow         Pharmaceuticals’ Sativex oral spray as
(CBMPs) offer new ways to treat            NHS doctors to prescribe medical              an add-on treatment for symptom
anything from genetic disorders to         cannabis to treat their severe types          improvement in patients with muscle
childhood epilepsies, multiple sclerosis   of epilepsy.                                  spasms and stiffness due to MS.

@healthlawuk
MEDICAL CANNABIS AND CBD             5

“Looking at data from overseas, cannabis-based                                           a significant proportion of prescribers
                                                                                         in the 50+ countries where cannabis
 medicines seem to be a really useful tool to help                                       for medical use has been made legal
 some patients improve overall quality of life and                                       and are prescribing for a wide range
                                                                                         of conditions.
 symptom control.”
 Dr Leon Barron, Executive Committee Member – The Medical Cannabis Clinicians Society,   “Looking at data from overseas,
 Founder – The Primary Care Cannabis Network                                             cannabis-based medicines seem to be
                                                                                         a really useful tool to help some
                                                                                         patients improve overall quality of life
Sativex contains two active ingredients      ingredient is CBD, may only be used to      and symptom control,” he says.
derived from the cannabis plant – CBD        treat two types of severe epilepsy,
and tetrahydrocannabinol (THC). THC          Lennox Gastaut syndrome and Dravet          But Dr Barron says many NHS trusts
raises concerns as it is the main            syndrome, which cause multiple              reject requests to prescribe on cost
psychoactive component of marijuana          seizures. Campaigners were                  grounds. “Patients who can afford it
which gives the ‘high’ and has been linked   disappointed, however, that NICE            have been forced to pay hundreds of
to agitation, hallucinations and paranoia.   ruled out either drug for chronic           pounds or more a month for private
                                             musculoskeletal or cancer pain due          prescriptions. Costs have been
Potential complications                      to lack of evidence of efficacy.            disproportionately high because up
The Royal College of Psychiatrists said in                                               until very recently, cannabis-based
a statement4 issued in November 2019:        While doctors on a specialist register      medicines have needed to be
“The propsychotic and anxiogenic             have been allowed to prescribe              imported on a named patient basis.
properties of THC mean that CBMPs            unlicensed CBMPs as a ‘specials             It is known as a ‘specials medicine’
containing THC are unlikely to be            medicine’, which can be prescribed to       which requires Home Office licences
helpful for any psychiatric condition. If    just one specific named patient, since      and approval by the MHRA, and
such products are prescribed in other        November 2018, figures5 provided in         doctors are only allowed to prescribe
health settings, clinicians must be aware    response to a Parliamentary Question in     28 days’ worth under controlled
of potential psychiatric complications.”     June 2019 reveal that they account for      drugs regulations.”
                                             fewer than 250 prescriptions a month.
The National Institute for Health and                                                    Hannah Deacon became a passionate
Care Excellence (NICE), which produces       Unmet patient needs                         advocate of CBMPs following her
drug and treatment guidelines for the        NHS GP Dr Leon Barron believes that         successful fight to get NHS treatment
NHS, had ruled out Sativex on cost-          GPs are uniquely positioned to              for her eight-year-old son, Alfie. She
effectiveness grounds. But in November       prescribe medical cannabis for patients     says medical cannabis suffers as a
2019, after negotiating a hefty discount,    with an unmet clinical need and that        result of the ‘demonisation’ of cannabis
it approved Sativex, and another GW          cannabis-based medicines should be          in general.
Pharmaceuticals drug, Epidiolex.             treated in a similar fashion to any other
                                             prescribed unlicensed medications. He       She says: “We must accept medical
With concerns about psychiatric              believes these treatments should be         cannabis as exceptional as it does not fit
complications and other factors in           available through the NHS and that an       into a pharmaceutical model. Until this is
mind, NICE ruled that Sativex may only       evidence base made up of                    accepted, and a new framework is
be used to treat spasticity – in which       observational data can be built in real     developed and research is carried out
muscles are continually contracted – in      time whilst serving the most in-need        based on a real world data approach,
MS. Epidiolex, whose main active             patients. General Practitioners make up     we will struggle to move forward.

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6    MEDICAL CANNABIS AND CBD

If patients are currently on private          “If patients are currently on private prescriptions
prescriptions of medical cannabis and
they show huge improvement, NHS                of medical cannabis and they show huge
doctors should be supported through            improvement, NHS doctors should be supported
more balanced guidance from NICE
and feel able to prescribe; currently          through more balanced guidance from NICE and
that is not happening.”                        feel able to prescribe.”
                                               Hannah Deacon, founding member of the MCCS and Campaigner
In July 2019 the House of Commons
Health Select Committee issued a
report6 on medical cannabis which
called for the Government to act swiftly      engage with parents and clinicians who       In October 2018, the College produced
to support more trials, including large       have argued for observational trials, not    guidelines on the limited use of medical
scale Randomised Controlled Trials            just RCTs, to “explore all ways to improve   cannabis with the Royal College of
(RCTs). These are seen as the gold            the evidence base”.                          Radiologists and the Faculty of Pain
standard in terms of assuring safety and                                                   Medicine of the Royal College of
efficacy, but the Select Committee also       Dearth of hard evidence                      Anaesthetists.
welcomed smaller, faster and more             But in the meantime, most doctors are
nuanced trials with patients who are          reluctant to prescribe unlicensed            “If medicinal cannabis was entirely safe
already seeing benefits.                      products for which there is a dearth of      and cost 10p per pop,” Professor Goddard
                                              hard evidence.                               says, “it would be used fairly freely in the
NHS England has listened to patients                                                       NHS. But when you have drugs costing
and clinicians, and in August 2019            Professor Andrew Goddard, the President      £10,000 a year per patient, the benefits
produced a report7 looking at barriers to     of the Royal College of Physicians, says     would have to be pretty compelling in
accessing CBMPs which made a series of        a meta-analysis8 of the limited number       order to make it cost-effective.”
recommendations around guidelines on          of RCTs of medicinal cannabis around
usage. It also called for further research,   the world showed a measurable                The MHRA’s authorisation made Sativex
led by the National Institute for Health      benefit “of around 3mm on a 100mm            the first natural cannabis-based derivative
Research (NIHR), with the aim being to        pain scale.”                                 to gain market approval in any country.

@healthlawuk
MEDICAL CANNABIS AND CBD      7

Worldwide sales of Sativex have               Unlike other countries that have reformed
promoted GW Pharmaceuticals to                their laws, McBride says the UK is trying to
number two in the top ten cannabis            shoehorn medical cannabis into its
firms in the world by market                  “existing model of healthcare through
capitalisation. The business is currently     existing pharmaceutical standards and
valued at around $3.6bn, according to         healthcare channels – that is not what other
the Prohibition Partners report.              countries have done.” And he reiterates
                                              calls for reassurances that the UK Proceeds
Public health imperative                      of Crime Act 2002 (POCA) would not apply
George McBride, chief executive at            to legitimate UK firms doing business with
Hanway Associates, a strategic                legitimate cannabis companies abroad.
consultancy working with the cannabis
industry, says there is a “public health      McBride says that while the licensing
imperative” to ensure access to safer         system treats CBMPs like unlicensed new
and cheaper domestically grown                pharmaceuticals which are “for good reason”
products, and calls for Government            tightly restricted, “in this case we have a
backing in terms of financial and other       product where the lions’ share of patients are
support for industry and research.            already obtaining it from the black market”.

“If medicinal cannabis was entirely safe and cost 10p
 per pop, it would be used fairly freely in the NHS.
 But when you have drugs costing £10,000 a year per
 patient, the benefits would have to be pretty
 compelling .”
 Professor Andrew Goddard, President of the Royal College of Physicians

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8    MEDICAL CANNABIS AND CBD

CHAPTER 2.

A VIEW FROM THE
PROFESSIONAL BODIES
With cost and safety issues looming large, moving forward will require a range of
different approaches – from alternatives to traditional trials, to the involvement of
the pharmaceutical industry.

When clinicians talk about evidence and        Dr Miller is the former Dean of the          back saying it would have no grounds to
safety, the shadow of Thalidomide looms        Faculty of Pain Medicine at the Royal        institute any action. What we must see is
large. Thalidomide was widely prescribed       College of Anaesthetists and now is chair    NICE and the GMC translating that support
in the 1950s and ‘60s to treat nausea in       of the Medicines Advisory Group at the       directly to doctors and trusts so doctors
pregnancy. But in the ‘60s it became           Faculty. He feels that regulators and        understand that they are supported if they
apparent that it caused severe birth defects   Royal Colleges are right to be cautious in   make the clinical decision to prescribe.”
in thousands of children around the world.     their prescribing guidelines.
                                                                                            Prescribing guidelines
Dr Barry Miller, a full-time NHS consultant    Hannah Deacon says doctors who want          With that in mind Dr Barron, who along with
in pain medicine, says there are legitimate    to prescribe responsibly have been           Professor Barnes is a co-founder of the
concerns. “We don’t know if in twenty          given some reassurance by their              MCCS, has drawn up prescribing guidelines
years down the line people will develop        professional regulator, the General          to counterbalance what he sees as relatively
some unusual disease or cancer,” he says.      Medical Council (GMC).                       restrictive official guidelines from NICE
“These things are not uncommon – look at                                                    which limit use to a small number of patient
Thalidomide and Vioxx [which caused            “Professor Mike Barnes [from the Medical     groups with specific conditions or for
heart attacks and strokes]. Maybe medical      Cannabis Clinicians Society, or MCCS]        prescription as a special medicine.
cannabis will turn out to be a valuable        wrote to the GMC to ask what would
addition to pain medicine therapeutics,        happen to a doctor who had done their        Dr Miller isn’t convinced: “The idea of
but until we have solid evidence of safety,    research and prescribed within their         asking doctors to prescribe unlicensed
there are real concerns.”                      competencies. The chief executive wrote      substances on a large scale for chronic

@healthlawuk
MEDICAL CANNABIS AND CBD               9

“If pharmaceutical companies can come in, help to                                            Given that projected global profits from
                                                                                             CBMPs run into billions, Dr Miller was
 fund more studies and standardise processes, then                                           concerned at the urgency to extend
 it’s beneficial for patients and the industry as a whole.”                                  prescribing and use. “I am a little
                                                                                             concerned that this is a push to try to get
 Eion Keenan, Prohibition Partners
                                                                                             something into a market without proper
                                                                                             regulation or scrutiny. Clearly there is
                                                                                             also the issue that a lot of people argue
pain is unique. We need to know if we are        Eoin Keenan agrees there is a need to       that medical cannabis is a lot better than
going to be doing harm to the developing         have a medical consensus on the             opioids – again, it might be, but the
brain in young people, or a developing           effectiveness of CBMPs “and increased       evidence is very weak – we need to be
foetus unexpectedly exposed, particularly        trials and data is the best way to get to   careful about it.”
if they are using it for pain,” he says.         that point”.
                                                                                             He does not think that other countries
The Royal College of Psychiatrists’ position     “The head of Public Health England          have a better handle on cannabis
paper called for more high-quality RCTs. It      [Duncan Selbie] has suggested that          medicines. While doctors are freer to
backs calls by the research community for        private companies take the lead on          prescribe in Holland, Germany, Denmark
the MDA to be amended so that clinical           establishing the research on cannabis.      and Canada, he says this doesn’t equate
trials of all types of cannabis can be carried   If pharmaceutical companies can             to evidence that it works and is safe.
out without a Home Office licence, of            come in, help to fund more studies          “I have seen papers from across the
which the College says “that is costly and       and standardise processes, then it’s        world but very little of it is good quality
time-intensive to obtain”.                       beneficial for patients and the industry    evidence that would get licences.”
                                                 as a whole,” he says.
Given what it calls the “global precedent”                                                   Need for caution
of CBMPs being sanctioned without                Long lead time                              Prof Goddard says that for very challenging
trials, the College wants Government             Given the long lead time for RCTs and       conditions, such as childhood epilepsies,
and patients’ groups to pressure                 the fact that patients are using illegal    alternatives to RCTs are “not unreasonable.”
pharmaceutical companies to invest in            cannabis, TWENTY219 was launched            But he adds: “When it comes to common
research “or the evidence for the efficacy       in November 2019 by independent             conditions such as chronic pain, where
of CBMPs won’t allow for a change in             scientific body Drug Science. The           there are a large number of patients who
current practice around prescribing”.            organisation is led by the controversial    can be tested on a large scale, RCTs should
                                                 former Government drugs policy              be done – particularly where the benefits
It also wants the potential adverse              adviser Professor David Nutt, who was       are small and you need a clear answer.”
consequences of the mass-prescription            sacked after publicly stating that
of products containing THC to be                 ecstasy and LSD were less dangerous         In time Prof Goddard feels CBMPs will
explored, and says countries that have           than alcohol.                               form part of the GP formulary. But he
already allowed mass prescribing                                                             reiterates the need for caution. “Just
should share their clinical findings.            By 2021 the project hopes to enrol          because it is exciting and so many
                                                 20,000 patients with a range of             companies want to do it doesn’t mean
Taking the lead on research                      conditions to create the largest body       we should run before we can walk.
If CBMPs are to become widespread, the           of evidence for the effectiveness           People seem to think that as cannabis is
College says clinicians need guidance on         and tolerability of medical cannabis.       a plant, it must be safe. But taxol, which
how to prescribe them effectively and            “We hope that the findings will make        we use to treat some cancers, is from
safely, and any change in prescribing must       a powerful case for NHS funding, by         the Pacific yew tree, and aspirin, which
be accompanied by a public education             proving the favourable risk/benefit         comes from willow bark, is perfectly
campaign where people are “informed of           ratio of medical cannabis in seven key      capable of killing. We have to learn the
the potential health risks of cannabis use       identified conditions,” Drug Science        lessons from previous drugs we thought
and discouraged from self-medication”.           said in a launch statement.                 were safe – like Thalidomide.”

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10   MEDICAL CANNABIS AND CBD

CHAPTER 3.

OPPORTUNITIES FOR INVESTORS
Companies are putting the pieces in place to benefit once the industry does take
off, although legislation and regulation means UK investors remain cautious.

Marcus Stuttard, Head of AIM and UK         To be admitted onto AIM, companies              Nomads work with the company, its
Primary Markets at London Stock             must undergo a vetting process                  lawyers and accountants and any
Exchange, does not give definitive          managed by a nominated adviser,                 other relevant sector specialists.
figures on how many cannabis-related        known as a Nomad. AIM keeps a                   “They do all the due diligence to
companies are listed, but says it           register of about 20 licensed Nomads,           prepare the company for admission
remains a growing sector.                   usually smaller investment banks or             to AIM, and produce admission
                                            corporate finance houses.                       documents which set out the core
Stuttard says existing pipeline companies
on AIM, London Stock Exchange’s market
for dynamic high-growth and medium          “With the expertise we will gain growing and stabilising
size companies, include businesses that
are active in the CBD and wellness space,    65 strains of cannabis at scale, when the time comes
and companies investing in businesses        for cannabis to be grown meaningfully in the UK, we
that are producing pharmaceuticals or
providing infrastructure such as             will be one of the turnkey companies.”
hydroponics or greenhouses.                  Melissa Sturgess, Chief Executive Officer, Ananda Developments plc

@healthlawuk
MEDICAL CANNABIS AND CBD         11

information about the company,              Reading between the lines, broader            on identifying which cannabinoids,
its financial position and growth           investor protection concerns would also       flavonoids and terpenes are working in
prospects,” says Stuttard.                  seem to be a motivation. In Canada,           entourage to treat various indications.
                                            some people made a lot of money
Where companies ‘overlap’ between           during the “greenrush” when it seemed         “With the expertise we will gain growing
recreational and pharmaceutical             that the share prices of listed cannabis      and stabilising 65 strains of cannabis at
products, Stuttard says Nomads would        companies could only go in one                scale, when the time comes for cannabis
look closely at the business model to       direction – up. But since Canada’s            to be grown meaningfully in the UK, we
make sure there is nothing in it that       recreational cannabis legalisation on         will be one of the turnkey companies,”
falls foul of POCA or any other             17 October 2018, share prices of              Sturgess says.
legislative requirements, whilst also       Canadian cannabis companies have
taking into account the overriding          typically fallen by a significant amount,     Given that most of the medicinal cannabis
requirement that any applicant must         with many investors losing money, an          available in the UK is grown and processed
be appropriate for AIM.                     experience UK regulators do not wish          elsewhere, Sturgess adds that patients,
                                            to see repeated on stock markets here.        doctors and investors are increasingly
Risk remains                                                                              interested in a UK supply of medical
POCA was not drafted with the modern        Investors are cautious                        cannabis. “Our partners grew medicinal
cannabis industry in mind, and              Melissa Sturgess is the Chief Executive       cannabis for GW Pharmaceuticals’
deliberately couched in broad terms.        Officer of UK company Ananda                  Epidiolex trials and so we have a very good
One consequence is that investors           Developments plc, listed on London’s          opportunity to provide the UK industry
could in theory face prosecution under      AQSE Growth Market, Aquis Stock               with high quality product for both the API
POCA for receiving dividends or             Exchange’s market for earlier stage,          and unlicensed CBMP markets.”
interest payments from an overseas          entrepreneurial companies seeking
company even though the operations          access to growth capital.                     She also feels there are opportunities in
of that company are entirely lawful in                                                    education given the relatively new (1992)
its home country. While the filing of a     She agrees that UK investors and              discovery of the body’s endocannabinoid
“Suspicious Activity Report”, amongst       entrepreneurs are cautious and that POCA      system which produces its own
other things, may in certain                is one factor. Nevertheless, the company      cannabinoids. “Medical education is
circumstances provide some relief,          has spent more than a year putting            starting in this country and as our
areas of doubt – and therefore risk –       together the case for an application to the   understanding of cannabis grows this
can remain.                                 Home Office to grow medical cannabis          will become increasingly in demand.”
                                            initially for research and development
The FCA recently attempted to address       purposes and ultimately for commercial        Moving away from opioids
this issue by setting out its approach to   supply to the UK medical cannabis sector      Eoin Keenan says that across the world
listings of cannabis-related businesses     and internationally.                          most requests for medical cannabis come
(18 September 2020). This clarity has                                                     from patients eager to move away from
been broadly welcomed by the sector         Ananda is partnering with Dr Dedi             opioid-based pain relief. He says that in
and it will be interesting to see what      Meiri’s laboratories at The Technion in       addition to the conditions such as
impact it has on investment in the          Israel. Dr Meiri is working on a wide         spasticity in MS and childhood epilepsies,
longer term.                                range of projects, ultimately focused         medical cannabis can be prescribed for

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12   MEDICAL CANNABIS AND CBD

rheumatoid arthritis, fibromyalgia,          Novel Foods legislation                     and may create opportunities, as well
dementia (including Alzheimer’s) and         It remains to be seen what the ultimate     as some challenges, for those in the
Crohn’s disease.                             impact of the guidance will be; but the     UK CBD industry.
                                             February 2020 UK Food Standards
“In the long term, research and data will    Agency guidance on the application of       While the UK is a long way from
influence how we prescribe cannabis-         the “novel foods” legislation to CBD        following US states such as California
based medicines,” he says. “If you look at   products has been broadly welcomed          and Alaska, where recreational
the clinical trial registers, a lot of the   by many companies at the forefront of       cannabis is legal, Tulloch points out
studies focus on chronic pain and            the UK CBD industry. Companies may          the benefits. “Legalisation has closed
Parkinson’s disease, but mental health       continue to sell existing products in the   down large swathes of organised
issues such as anxiety, insomnia and         UK after 31 March 2021 only if, prior to    crime and taken recreational cannabis
PTSD feature frequently.”                    that date, they have submitted a proper     into a regulated field where people
                                             “novel foods” authorisation application.    know that what they buy is tested and
Nick Tulloch, Director at Fetlar Capital,    Anecdotally, it is clear that “quality”     high quality. It has also generated a
says the rapid expansion of the CBD          operators believe this should have          large amount of revenue as it is taxed
market has thrown up some high-quality       quite an effect in terms of improving       like tobacco and alcohol.”
products. But he adds: “There’s also a       overall standards, specifically because
dark side of people literally creating CBD   it is believed that many smaller market     Market analysts agree that medicinal
products in their kitchens where not only    participants simply won’t have the          cannabis could be an investor goldrush,
the composition of each product may be       funding or the capability to comply.        but Tulloch advises investors to be
different, but some of the ingredients are                                               careful. “Back those companies that
undesirable. For example, tests in 2019      The position for European Union             have a high social media profile, good
showed a handful of CBD products on          countries currently seems less clear        branding, a clear strategy, good
UK shelves contained illegal solvents.”      because it has been reported that the       financial controls and most importantly
                                             European Union is considering               have products that are differentiated. A
Tulloch calls for the equivalent of a        classifying hemp-derived CBD as a           copycat company is going to struggle in
kitemark on CBD products so that             controlled narcotic; if this occurs, it     the long term.”
consumers know they can be trusted.          would probably result in significant
“Often products have nothing on the          restrictions on EU market participants
label that says how much CBD is in it.
For an industry that wants to be as big
as CBD does, that’s unacceptable,”
Tulloch says. “More regulation will do
everyone good and take out the people
                                             “If you look at the clinical trial registers, a lot of the
that are doing things they shouldn’t. It      studies focus on chronic pain and Parkinson’s disease,
would also make consumers more
confident and probably push prices up a
                                              but mental health issues such as anxiety, insomnia and
bit, but at least everyone would know         PTSD feature frequently.”
products are what they claim to be.”          Eoin Keenan, Prohibition Partners

@healthlawuk
MEDICAL CANNABIS AND CBD          13

CHAPTER 4.

INTERNATIONAL MODELS
Several countries have loosened restrictions on medical cannabis, offering the UK
lessons in terms of its approach to research, manufacturing and access.

At the end of 2019, Thai Prime Minister       The Canadian, Israeli and Maltese         Canada
Prayut Chan-o-cha launched the                governments face similar critiques        In 2001 Canada became the first G7
government’s medical cannabis                 to the UK that access to medical          country to create an exemption in
education website at an event alongside       cannabis is limited by cost and           criminal law to allow approved patients
its official mascot Dr Ganja – in white lab   bureaucracy which helps the black         to possess and grow their own cannabis
coat and a green marijuana leaf head.         market flourish.                          following the lengthy legal battle of
                                                                                        Terry Parker, a man with epilepsy who
Thailand already has a string of government   All three nations have individual         was arrested for cannabis possession,
medical cannabis clinics and is one of many   approaches, and are at different stages   cultivation and trafficking.
countries making medical cannabis             in their relationships with medical
products available. It is also creating       cannabis, but experts say all three       In 2013, the Canadian Federal
significant production and manufacturing      offer the UK lessons in terms of its      Government implemented regulations
bases. But the rate of change and the level   approach to research, manufacturing       which created a commercially licensed
of ambition varies from place to place.       and access.                               industry for the production and

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14   MEDICAL CANNABIS AND CBD

                                                                                               She feels the UK, with its reputable
“Waiting for clinical trials would delay everything                                            institutions, could take the lead in an
 by about 10 years, while patients resort to                                                   industry that is still in its infancy.
                                                                                               “Considering some of the public
 potentially more harmful substances and drugs –                                               health challenges like opioid usage,
 such as opioids.”                                                                             the health costs of an ageing
                                                                                               population, and the fact that general
 Karine Cousineau, Director, Government Relations and Sustainability at The Green
 Organic Dutchman                                                                              stigma associated with cannabis is
                                                                                               diminishing, it would be less of a
                                                                                               political risk for a government to invest
distribution of medicinal cannabis. Some     grows, manufactures and sells a range             in cannabis research.”
37,800 people are authorised to possess      of cannabis products including
marijuana under the programme, up            prescription items. She says this is a            Malta
from fewer than 100 in 2001.                 problem the Canadian Government is                Medical cannabis has a growing role in
                                             trying to address.                                the Maltese economy – it has already
Patients with the authorisation of their                                                       created more than 900 jobs and it is
doctor can access cannabis by either         Given public demand, Cousineau says that          expected to increase trade in exported
registering with a licensed producer,        while it could be tempting for policy makers      goods by 30%.
registering with Health Canada to            in Canada and across the world to demand
produce a limited amount for their own       RCTs before providing access to patients, it      In April 2018 Malta introduced medical
medical purposes, or designate               would be a mistake. “There is enough data,        cannabis legislation covering
someone else to produce it for them.         anecdotal evidence and advocacy out there         production, manufacture, distribution
                                             to do a reasonable assessment of the              and, significantly, research – one of the
However, Canada’s black market is still      minimal risk associated with cannabis use as      freedoms UK doctors are hoping for.
flourishing as medical grade cannabis is     medicine. The development of the industry
expensive to produce and there are a         and research needs to be done in tandem           Marion Zammit is the head of medical
limited number of suppliers.                 in order to be successful. Waiting for clinical   cannabis activity at Malta Enterprise,
                                             trials would delay everything by about 10         Malta’s economic development
Karine Cousineau is the Director,            years, while patients resort to potentially       corporation, and the first point of entry
Government Relations and Sustainability      more harmful substances and drugs – such          for anyone wanting to invest in the
at The Green Organic Dutchman which          as opioids,” she says.                            medical cannabis industry.

@healthlawuk
MEDICAL CANNABIS AND CBD          15

Zammit says local producers can export,   in medical cannabis. “Nonetheless,          psychoactive molecule in marijuana
as well as sell, locally to licensed      products manufactured in Malta              that causes a high, was first isolated in
pharma distributors who then sell onto    needs to be produced adhering to the        1964 by Professor Raphael Mechoulam,
pharmacists. Any doctor can prescribe     highest pharmaceutical standards.           a scientist at Hebrew University.
medical cannabis; however patients        Drugs produced in Malta are renowned
need to apply for a permit from the       for their quality all around the world,     Marijuana for medical use has been
country’s Superintendent of Health.       and the same standards will be applied      permitted since the early 1990s
                                          to medical cannabis products.”              for cancer patients and those with
The country aims to become an                                                         pain-related illnesses such as
influential producer and exporter of      Some Maltese doctors are reluctant          Parkinson’s, MS and Crohn’s disease,
CBMPs. More than 50 companies             to prescribe, given the lack of RCTs.       but recreational use remains illegal.
including businesses based in the UK,     “When it comes to the medical
Israel, Canada and Australia have         profession, cannabis represents a           In April 2017 it was made possible for
applied to work in Malta. To date,        paradigm shift,” Zammit concedes.           medical cannabis companies to export
Zammit says 27 have been approved         “Patients come to doctors saying            their products, with analysts estimating
with more to come.                        would you prescribe. Not all doctors        that the measure could generate Israel
                                          are taking it up, as for many it            some $267m per year.
She says that greater competition will    represents a challenge in their
help drive CBMP prices down. “When        prescribing habits, especially since        According to iCan, an Israeli company
evaluating projects for approval, three   there is a lack of medical information.     which invests in the local cannabis
main criteria are used, namely, due       But some are seeing patient benefits        market, more than 50 US companies
diligence on the shareholders of the      from the drug, and the more happy-          have relocated or invested in cannabis
company, financial viability of the       ending stories and empirical                research in Israel to evade onerous
project, as well as sectorial/relevant    evidence they see, the more likely          research regulations in the UK and US.
experience of the shareholders.”          they will prescribe.”
                                                                                      There are eight government-sanctioned
As the science is in a fledging state,    Israel                                      cannabis growing operations in
the legislation does not put any          Israel has been at the centre of            Israel, which distribute to patients who
restrictions on the amounts or            cannabis research for decades, with the     have a licence from the Ministry of
combinations of THC and CBD used          Ministry of Health playing an active role   Health and a prescription from an
                                          in finance and support. THC, the            authorised doctor.

                                                                                                               dacbeachcroft.com
16   MEDICAL CANNABIS AND CBD

“There is a lot of bureaucracy around the process                                         Around 100 Israeli physicians can
                                                                                          prescribe medical cannabis but
 and patients are complaining because they knew                                           Maymon-Pomeranchik says doctors are
 their strain and they knew the farms they got it from.                                   required to present extensive evidence
                                                                                          that other treatments have failed.
 The intention, which was to ensure labs safety, was
 very good, but the bureaucracy is very tough.”                                           That said, she feels more doctors are
                                                                                          willing to prescribe cannabis simply
 Dr Inbar Maymon-Pomeranchik, founder of BioDiligence Partners                            because of the empirical evidence that it
                                                                                          seems to be effective. To help doctors
                                                                                          understand how medical cannabis can be
Dr Inbar Maymon-Pomeranchik is the          manufacturing practice] registered            used she says there has been a big growth
founder of BioDiligence Partners,           pharmaceutical company, then it goes          in physician education programmes, but
which advises investors and biotech         to a pharmacy where the patient can           there will always be those who want to see
companies on medical cannabis. While        buy their supply on prescription.             hard evidence in the form of RCTs.
some 50-60,000 Israelis use prescribed
medical cannabis, Maymon-Pomeranchik        “There is a lot of bureaucracy around the     In terms of lessons for the UK, she feels
says the regulatory system is still too     process and patients are complaining          that more emphasis must be placed on
bureaucratic, which means people turn       because they knew their strain and they       physician and patient education
to the black market.                        knew the farms they got it from. The          programmes, as well as ways of
                                            intention, which was to ensure labs safety,   reducing the bureaucracy and cost in
“Until a year ago patients could choose     was very good, but the bureaucracy is         terms of access, particularly around
the farm that supplied their products.      very tough and complying with GMP adds        import licences.
Now the farm must sell to a GMP [good       to the expense,” she says.

@healthlawuk
MEDICAL CANNABIS AND CBD        17

IN SUMMARY
There is worldwide demand for medical cannabis, and growing calls to make it
more widely available in the UK. But some doctors urge caution and more
medical trials.

• There would appear to be significant       • High costs associated with the trialling   • More trials are in the pipeline in the
  potential worldwide demand for               and development of medical products,         form of NHS RCTs, privately
  medical cannabis, with market sales          the principle that products already          sanctioned RCTs and qualitative
  estimated at anything between                licensed should be used first and            observational trials. But advocates of
  £33.64bn and £62bn by 2025.                  doctors’ reluctance to prescribe             medical cannabis, as well as NHS
                                               without RCT evidence, means very             England and the Health Select
• Public opinion, several high-profile         few UK patients currently benefit.           Committee, say big pharmaceutical
  cases such as that of eight-year-old                                                      companies also need to take part.
  Alfie Dingley, the UK medical cannabis     • Supporters say medical cannabis is
  industry and a small but vocal body of       so different from ‘normal’ new             • In light of some recent experiences, it
  medical opinion are driving calls to         pharmaceuticals that it needs its own        was clear that the CBD market needed
  make medical cannabis more widely            trials and prescribing criteria. Others      more regulation and a ‘kitemark’
  available in the UK.                         advocate continued trust in established      approval system to stamp out rogue
                                               research procedures, to minimise risk        producers – the February 2020
• However, a separate body of respected        to patients and protect the public.          guidance from the UK Food Standards
  medical opinion, driven by public safety                                                  Agency has therefore been broadly
  concerns, urges caution in the absence                                                    welcomed by many companies at the
  of further medical research data.                                                         forefront of the UK CBD industry.

                                                                                                                   dacbeachcroft.com
18    MEDICAL CANNABIS AND CBD

• The recent statement by the FCA of its                  • Campaigners say the UK Government                  • Clinician and patient education also
  approach to listings of cannabis-                         needs to help kick-start the industry                present business opportunities.
  related businesses has been broadly                       via grants for growing companies
  welcomed and it will be interesting to                    producing pure strains and bringing                • Overseas observers say the UK needs
  see whether this has an impact on                         UK products to market, since in their                to make it easier for clinicians to
  investor confidence.                                      view this would bring prices down                    prescribe on the NHS and to free up
                                                            and competition would keep prices                    legislation and bureaucracy to make
• To protect those investors and                            lower. However, it should be noted                   investment, import and research
  entrepreneurs keen on medical cannabis                    that the National Institute for Health               easier, although some commentators
  businesses, all companies wishing to list                 Research is already making some                      would argue that the 2018 change in
  on UK stock markets need to go through                    grants for this purpose.                             the law already represents a
  rigorous checks, in the same way as                                                                            significant step forward.
  for businesses in any other industry.                   • There may be opportunities for
  Furthermore, in light of the Canadian                     investors in end-to-end supply chain
  “greenrush” experience, broader                           companies which grow, manufacture,
  investor protection concerns would also                   and package products, subject to
  seem to be a motivation for UK financial                  compliance with applicable legal
  regulators when looking at the medical                    restrictions.
  cannabis sector.

ENDNOTES
1 https://www.gov.uk/government/news/government-announces-that-medicinal-cannabis-is-legal
2 https://www.researchandmarkets.com/reports/4763121/medical-cannabis-market-global-industry-trends
3 https://prohibitionpartners.com/reports/#the-global-cannabis-report
4 https://www.rcpsych.ac.uk/docs/default-source/improving-care/better-mh-policy/position-statements/ps05_19.
  pdf?sfvrsn=e91154ba_2
5 https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/
  Commons/2019-06-27/270334/
6 https://publications.parliament.uk/pa/cm201719/cmselect/cmhealth/1821/182102.htm
7 https://www.england.nhs.uk/wp-content/uploads/2019/08/barriers-accessing-cannabis-based-products-nhs-pre-
  scription.pdf
8 https://www.thelancet.com/journals/lanpsy/article/PIIS2215-0366(19)30401-8/fulltext
9 https://drugscience.org.uk/project-twenty21/

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CONTRIBUTORS

     Dr Leon Barron                 Eoin Keenan                Marcus Stuttard
     Executive Committee            Content &                  Head of the AIM and UK
     Member – The Medical           Communications             Primary Markets at the
     Cannabis Clinicians Society,   Director, Prohibition      London Stock Exchange
     Founder – The Primary          Partners
     Care Cannabis Network

     Karine Cousineau               Dr Inbar Maymon-           Melissa Sturgess
     Director, Government           Pomeranchik                Chief Executive Officer
     Relations and                  Founder of                 of Ananda
     Sustainability, The            BioDiligence Partners      Developments
     Green Organic
     Dutchman

     Hannah Deacon                  Dr Barry Miller            Nick Tulloch
     founding member                Chair of the Medicines     Director of Fetlar
     of the MCCS and                Advisory Group the         Capital
     Campaigner                     Royal College of
                                    Anaesthetists Faculty of
                                    Pain Management

     Professor Andrew               George McBride             Marion Zammit
     Goddard                        Chief Executive Officer,   Head of Medical
     President of the Royal         Hanway Associates          Cannabis Activity at
     College of Physicians                                     Malta Enterprise
20    MEDICAL CANNABIS AND CBD

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