💸 The Tape

It appears cannabis is going prime time in Brazil—and MediPharm is taking center stage. In a move that underscores both grit and global ambition, the pharmaceutical-grade cannabis manufacturer announced a commercial agreement with Laboratório Teuto, one of Brazil’s heavyweights in medicine production. For those keeping score, Brazil isn’t exactly a walk in the park for cannabis companies, thanks to strict ANVISA regulations that demand everything from extended product dossier submissions to on-site GMP inspections. Suffice to say, you don’t just waltz into São Paulo waving a hemp leaf.

MediPharm, however, has proven it can handle the rigors. Not only did the Canadian-based firm secure multiple Sanitary Authorizations for two cannabis products, but it also carries the elusive ANVISA GMP license—an accolade that puts it in rarefied air among North American cannabis players. Talk about a high regulatory bar: fewer than 40 valid authorizations have been doled out under RDC 327/2019, and MediPharm landed two of them.

Enter Teuto. With a 77-year track record and a sprawling 140,000-square-meter manufacturing facility, Teuto isn’t your typical partner. This is a blue-chip local player with the distribution muscle to match. Factor in a national sales force and a proven knack for launching blockbuster pharma products, and you have a powerful one-two punch poised to deliver pharmaceutical-grade cannabis to over 215 million Brazilians. If the projections hold up, the Brazilian medical cannabis market could top $260 million by 2026, growing at a brisk 20% annually. That’s enough to get any analyst’s calculator clicking.

Executives on both sides are understandably enthusiastic. MediPharm CEO David Pidduck calls Brazil “a perfect example of a large, complex market” that fits perfectly with the company’s pharmaceutical pedigree. Meanwhile, Teuto CEO Marcelo Henriques sees medical cannabis as a natural extension of his firm’s portfolio, tapping into needs for palliative care in oncology and other CNS therapies.

Sure, the path to growth in Brazil is paved with stringent regulations, but that’s exactly what sets apart the gold-standard operators from the rest of the pack. MediPharm is betting that high-quality, GMP-certified products—backed by a partner who knows the local landscape—will translate into a winning formula. If this new partnership hits its stride, expect more transcontinental handshakes where strict rules and big market potential meet.

📈 Dog Walkers

Cannabis Up, Opioids Down

Ready for a Wall Street spin on America’s pain crisis? A new study shows that once states legalize medical cannabis, opioid manufacturers drastically cut those cozy payments they’ve been lavishing on pain doctors. Think of it as a market rebalancing: marijuana strolls in as a cheaper, less addictive competitor, and Big Opioid starts pinching pennies to protect its market share. Researchers even found a noticeable dip in the ratio of opioid-to-non-opioid prescriptions in legalized states. Meanwhile, companion studies link legal cannabis to fewer deadly overdoses. Translation? Marijuana might be stealing Big Pharma’s thunder—while saving lives. From a purely financial standpoint, opioid titans appear worried marijuana is becoming the new safe-haven asset for chronic pain. Whether you’re rooting for pharma or “farm-a,” one thing is clear: medical cannabis is shaking up the prescription game in ways that could prove both profitable and life-changing.

The End Is Near My Friend

Red White & Bloom (RWB) is aiming to tidy up its house in Michigan by effectively handing over its Pharmaco subsidiary to a court-appointed receiver. Pharmaco once ran medical and adult-use cannabis shops, but no longer fits RWB’s master plan—hence the recent Receivership Order. Judge Michael Warren tapped Trust Street Advisors to handle what’s left of Pharmaco, potentially leading to cost savings and reduced debt headaches for RWB. Meanwhile, the company insists its remaining operations are humming along just fine, with eyes fixed on Florida’s medical market expansion and a newly acquired Canadian business. This strategic realignment follows uncured defaults under Pharmaco’s senior-secured loan, prompting a swift legal remedy.

🗞️ The News

Federal Court Reaffirms That Ban On Gun Ownership For People Who Occasionally Use Marijuana Is ‘Unconstitutional’

MediPharm Labs Enters Landmark Commercial Agreement with Laboratório Teuto in Brazil

📺 YouTube

DEA Rescheduling Showdown: Boris Jordan Talks 2025 Cannabis Trends

What we covered:

✅ On our latest Trade to Black podcast, Shane Pennington, Partner at Porter Wright Morris & Arthur LLC and counsel to Village Farms (NASDAQ: VFF), will join us to talk about the latest involving the rescheduling of cannabis.

Earlier this week Village Farms jointly filed a request to reconsider their previous motion to disqualify and remove the DEA from its role in the proposed rescheduling of marijuana from a Schedule I to a Schedule III drug. The new request includes evidence claiming that the DEA’s negative attitude towards the proposed rule has hurt the chances of rescheduling.

Pennington believes this new evidence shows that the DEA is using its power to undermine the process and block the Schedule III proposal.

Plus, Curaleaf (OTC:CURLF) Chairman and CEO Boris Jordan will join us. He'll discuss whether or not he's had recent conversations with the new Trump administration about the cannabis industry and what changes we can expect in 2025.

One of the biggest issues for the cannabis industry is access to institutional capital. We'll ask Jordan if he believes that 2025 will finally be the year when proper legislation is put in place for the cannabis industry and marijuana stocks.