A subsidiary of the biggest medical cannabis producer in Canada released a statement announcing that it will lower its prices for each of its six strains to $5 per gram. The average price for a gram of medical cannabis in Canada is currently about $7.50.
Bedrocan Canada, a subsidiary of the Ontario-based Canopy Growth Corporation, has launched a new price structure that it calls “True Compassionate Pricing,” under which system Bedrocan claims it will offer the country’s lowest-priced products. Marc Wayne, Bedrocan’s president, said the firm’s fully-automated production facility, manned by just five employees, is running at full capacity.
“We’re very comfortable with lowering the price based on what we’re seeing on our yields and our production efficiencies,” Wayne told the Financial Post.
The firm’s new pricing system is also part of an attempt to increase its market share, according to the Post. Bedrocan is one of only 27 licensed medical cannabis producers in Canada, and the firm may be able to use its scale to undercut rivals.
Aaron Salz, an analyst with Dundee Capital Markets, said that “the tactic is both strategic in attracting patients with competitive pricing and ethical in that it sends a message to regulators to act on insurance coverage and other affordability measures.”