Shoppers Drug Mart, a subsidiary of Loblaw Companies (TSX: L), is officially exiting the medical cannabis segment. The firm this morning revealed it had struck a deal with Avicanna (TSX: AVCN) to transition its Medical Cannabis by Shoppers business.
The transition from Shoppers to Avicanna is expected to take approximately three months, and Shoppers intends to support its client base through that transition period.
“We are grateful for the trust placed in us by our medical cannabis patients over the past few years, and are confident we’ve found the right partner in Avicanna to continue to support them. As we move away from medical cannabis distribution, we remain firm in our belief that this medication should be dispensed in pharmacies like all others and will continue our advocacy to that end,” commented Jeff Leger, President of Shoppers.
Medical Cannabis by Shoppers was originally launched in January 2019, roughly three months after recreational cannabis was legalized across Canada. In the time since the platform is said to have “supported tens of thousands of patients,” while listing over 30 cannabis brands.
Avicanna intends to rename the brand to MyMedi.ca, while offering a similar product portfolio with several product formats. The platform is expected to have pharmacist-led patient support programs, while also providing patient education in areas such as harm reduction and specialty services to distinct groups such as veterans.
Shoppers Drug Mart did not indicate a reason for making its exit from the cannabis industry, or the price paid by Avicanna to acquire the operation.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
