After lodging its medical cannabis license application, Impression Healthcare Ltd’s [ASX:IHL] share price has jumped 5.56%.
The lodgement represents a significant milestone in Impression Healthcare’s medical cannabinoid strategy. As reported in an announcement this morning, IHL’s strategy is aimed at leveraging intellectual property of current market leaders.
If approved, the license will most likely be issued within eight weeks, according to Impression Healthcare’s pharmaceutical application consultants.
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Impression Healthcare’s share price set for bigger gains
The staggering way in which IHL’s share price has moved over the last month might give you the impression that the market and other investors aren’t convinced on its potential.
But that’s not necessarily true.
The problem at the moment is that IHL is still waiting on its medical cannabis license approval. But that is also its advantage. The company had already put fourth application to get licenses from The State Department of Health, Victoria and the Federal Office of Drug Control for the importation, storage, distribution and export of medicinal cannabis products, back in October.
So, it isn’t exactly new news. However, as we are approaching the New Year, we are vastly approaching the date that Impression Healthcare expected to be granted its license. Which will most likely help their share price and quieten the doubt we are currently seeing in the market.
Impression Healthcare’s 2019 outlook
Once granted, the license means that IHL can import and export cannabinoid medicines in Australia, as well as sell approved cannabinoid medicines across Australia (law permitted), under the special access scheme.
Elsewhere, Impression Healthcare has executed a Heads of Agreement with Pace Sports Limited (Hong Kong Company), for both the marketing and distribution of oral medication in China, ASEAN, Hong Kong and Taiwan.
Overall, Impression Healthcare believes this is a significant international expansion opportunity. And this most likely means good things for investors, provided Impressions Healthcare’s share price will come to reflect this.
But don’t be surprised if you do see Impressions Healthcare’s share price settle some what come tomorrow.
For Money Morning
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