Jayex Healthcare Limited (ASX: JHL) is in the business of healthcare sector. The company has specifically focused on healthcare technology from the last 25 years by creating several products and acquiring Australia’s number one appointment booking application. The company has installed its healthcare technology in 6500 sites in the UK alone. The technology is designed to help small and large healthcare organisations and improve their patient engagement, reduce the pressure on their staff, online appointment booking etc. to increase to overall patient experience.
On 18th March 2019, the company announced the implementation of its revised strategy for the development and commercialisation of its BluePoint remote dispensing technology and P2U script processing technology which are aimed at medical cannabis market in New Zealand.
This revised strategy has been undertaken to seek the commercialisation opportunities of the technology in the rapidly growing cannabis market like New Zealand. Another reason which resulted in this revised strategy was the termination of the initial Technology Licence Agreement with MediCann NZ Limited in October 2018. MediCann was liquidated by its shareholders in December 2018.
The company considers New Zealand’s emerging market to be a lucrative environment for the opportunity to develop and commercialise the technology under the revised strategy. This is considered because of the government’s regulations and its intention to grow the medical cannabis market. In December 2018, the Misuse of Drugs (Medicinal Cannabis) Amendment Act 2018, allowing for the regulated prescribed use of medical cannabis in New Zealand was enacted, with the detailed scheme to govern medical cannabis to be dealt with in forthcoming regulations which may start in or about June 2019. The government has also confirmed to conduct a referendum on the proposed legalisation of personal use of cannabis.
The company’s revised strategy in the New Zealand medical cannabis market is based on:
- The company would have the sole management and financial control of Technology’s development with respect to medical cannabis. This would help to remove any reliance on third-party licensees.
- The company is installing its own special purpose medical cannabis research facility and would be cultivating its own medical cannabis to produce its own medical cannabis products which are suitable for prescribed sale and distribution. This will again help to remove any reliance on third-party medical cannabis cultivation companies and cannabis products manufacturers.
- It would also license or resell third-party manufactured and approved medical cannabis products
Commercialisation of the technology
The company’s revised strategy includes intended third-party sale leasing of an initial 5 BluePoint kiosks/remote dispensing terminals, once permitted under the Act and Regulations. After the termination of the MediCann agreement, it was focussing on significantly reducing the expected installed per unit cost of the proposed modified BluePoint kiosk/remote dispensing terminal. The company expects the lower per unit cost will increase the acceptance of technology among New Zealand doctors and pharmacists.
Key Developments in implementation of revised strategy
The company aims to implement the revised NZ medical cannabis and Technology commercialisation strategy via Whakaora Hou Limited (WHL), wholly owned subsidiary acquired in December’18, and experienced board of directors. WHL applied for required permits for medical cannabis research facility in NZ with the Ministry of Health completing its initial assessment of the applications. WHL has inked Services Agreement with Ross Smith and his NZ based company, Weed Inc as an independent consultant and contractor. The company is also undergoing discussions with several third-party vendors for sale and distribution of approved medical cannabis products.
The stock traded flat on ASX at A$0.031 as of 18th March 2019. The stock has given a decent 55% return in the last six months, and YTD return stands at 47.62%.
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