Danish CannTrust Partner Quarantines Small Amount of Product Follow Recent Health Canada Investigation
According to The Leaf, ripple effects of CannTrust’s run-in with Health Canada are already spreading. On July 8th, CannTrust announced that five grow rooms were found in their Pelham facility. These rooms had been operating since last October, but only received a license in April.
Concerned over a small batch of products, CannTrust’s Danish medical marijuana partner, Stenocare, has put a hold on this shipment until they verify its safety or are forced to destroy it.
Stenocare, who partnered with CannTrust in March of 2018, received its first shipment of cannabis oil in September of that year.
Whether CannTrust executives knew about these rooms is unclear. What is clear are the inevitable consequences. For instance, Monday’s announcement plummeted the company’s stock by 20%, although it has since gained some momentum toward recovery.
At this point, the damage is clearly done.
Stenocare acted quickly to ensure that no unsafe or unregulated products make it to the market. The Leaf explains:
“Stenocare said Tuesday that it has been in contact with the Danish Medicines Agency and the single batch has been put in quarantine for potential destruction, pending an ongoing investigation by Health Canada.”
The Danish company receives a lot of shipments from CannTrust, most of which were completely fine. According to Stenocare, the affected batch is just a small fraction of the total products received, with the vast majority “unrelated to the current issue.
Unfortunately, the case is not the same for CannTrust.
Impact on Inventory
Fortunately for Stenocare, the small amount of product involved means that impact on inventory will be negligible. In a statement, Stenocare said:
“Stenocare operates with a significant inventory, which means that most likely this matter will have no impact upon Stenocare’s continued ability to serve the market as required. Stenocare expects to be unharmed financially or otherwise from this unfortunate matter.”
CannTrust, on the other hand, is about to face a bumpy road. 12,500 kilograms of cannabis were held back, with 5,200 kilograms placed on “hold” by Health Canada. CannTrust also voluntarily kept another 7,500 kilograms from hitting the market.
Unfortunately, this means a potential crisis for medical clients. According to The Leaf:
“CannTrust’s chief executive Peter Aceto said this represented the “majority” of the company’s inventory and warned of product shortages ahead.”
This represents a potential crisis for individuals who heavily rely on CannTrust’s products – many of which (ironically) won awards.
Investigation and Fallout
Peter Aceto explained that CannTrust is launching an investigation to figure out how this all happened. The company enlisted the help of a third party to track down how this incident occurred.
But while CannTrust works to find answers, this leaves a lot of questions. How badly will inventory be affected? How long will it take to recover? What additional options are there?
There is no telling exactly how much time it will take to recover the lost inventory – a total of over 25,000 kilograms. But considering it takes three months for the company to harvest and process just under 10,000 kilograms, a shortage of this magnitude will be staggering and likely last for some time.
For those being left out in the cold, there are options. Individuals who know their medical needs can likely find similar – if not identical – strains from other licensed producers. Switching is easy, requiring a simple phone call to the new LP of choice, who then transfers the prescription over.
Alternately, patients could choose to purchase those similar or identical strains from a recreational dispensary.
WeedAdvisor’s Concern for Safety and Ethics
Sadly, this is not the first time we reported on licensed producers who broke the rules. Adding an award-winning company like CannTrust to the list of regulatory violators is shocking, but only proves that no licensed producer is immune to such misconduct.
Stories like these, however, a critical to public interest and thousands of patients. This is why, in our effort to consistently educate potential consumers, we will always report developments like these. Such news is simply too critical to ignore.