Licensed Dealers: A New Framework for a New Industry
By Samuel Bouabane, Cannabis Strategic Licensing Manager
Cannabis Compliance Inc.
Pharmaceuticals, natural health products, foods, beverages, cosmetics, household and veterinary products are just a glimpse of the creative categories expected over the upcoming years as cannabis legalization approaches.
Licensed Dealers, authorized by Health Canada under the Narcotic Control Regulations are traditionally firms that service the pharmaceutical controlled drugs industry. With the exception of cultivation, they have the ability to conduct a number of activities involving cannabis which include possession, research and development and global trade. They are also capable of performing exploratory trials in material refinement, formulation development and testing for the full gamut of products to come.
The efforts of today’s Licensed Dealers are helping to solve some of core the scientific and medicinal issues the industry is facing from regulators, medical professionals and the general public. Through clinical trials, product formulation, packaging and stability studies, Licensed Dealers are able to address product shelf life concerns, determine standard dosages, and help shed light on the overall safety and therapeutic efficacy of cannabis.
But with the onset Canada’s new cannabis regulatory framework, a few unsettling questions arise for Licensed Dealers: How will they integrate into the new framework? Will they maintain the same regulatory permissions as they have today? Will there be any added regulatory permissions once the new framework arrives?
Here is our forecast:
- To ensure the existing legal framework for manufacture and distribution of controlled drugs is maintained, existing Licensed Dealers will continue to exist and operate at status quo. Certain already approved cannabinoid containing medications will continue to be distributed via Licensed Dealer channels.
- Health Canada’s Proposed Approach to the Regulation of Cannabis includes plans for the transition of Licensed Dealers and applicants under the existing legal framework to the new one. Licensed Dealers will continue to have the same permissions involving cannabis as they were previously authorized under the Narcotic Control Regulations. Existing Licensed Dealers and applicants will be granted a new type of authorization for analytical testing and research.
- Provided that Licensed Dealers meet the rigorous quality and regulatory requirements to ensure products are safe for use, they may also be eligible to supplement their licences with a Processor’s Licence whereby they could manufacture and package cannabis products for commercial sale.
While the nation patiently awaits the new regulatory framework, it is clear that Licensed Dealers are playing and will continue to play a fundamental role in the cannabis industry.
Cannabis Compliance Inc (CCI) is the global leader in cannabis compliance solutions, including full-circle support for achieving a licensed dealer’s licence. Contact us today to learn about how we can help.