Clinics Medicann UK

[joint_account]

I've made a few comments on this already today, yes - I feel when clinics have finished racing to the bottom on clinical fees, the next major battleground will become pharmacies selling meds under RRP to attract patients to use them. It's inevitable in the long-run.

It will work out better for patients, but then we may also see increased fragmentation/segregation of availability, if suppliers start trying to cut off pharmacies selling under RRP to protect margin or not to 'devalue' their brand. Our anti-price fixing laws do not allow a supplier and pharmacy to agree any sales price together (though weirdly agreeing a maximum sales price is allowed) - and the only way they really have to enforce RRP is to cut-off supply to those selling under it.

I feel Medicann's model is a catalyst to moving us towards lower med costs. To give an example, Medicann right now can attract patients by dropping all the way down to a zero-fee model, but no-one entering the market in the future can really follow suit, because patients choose established names they can find reviews/info on, and will 90%+ of the time choose them over the random newbie if pricing is the same. In the future when some random new company enters the UK market (even with deep pockets to market themselves), there's zero reason for patients to start using them over more established competitors when they both have the same zero-cost pricing model - unless medication costs are lower.

Effectively, the only way left for new companies to attract a ton of new patients (after zero-fees becomes the norm), is to start dropping med prices in their pharmacies.

Truly believe this is what will happen in the long-run.

I appreciate the thoughtout reply!

I did just speak to my doctor who also works at Cantourage and he's been told to expect <£4.50 flower as a regular in the market soon, which does back up your view on how things are going for sure.

but in this instance, with low or zero fee models, and <£5 flower, where are these guys making their money? small margins but volume orders?

 

[Muiredach]

but in this instance, with low or zero fee models, and <£5 flower, where are these guys making their money? small margins but volume orders?

Straight from the profit of IPS Pharma we'd expect, no idea what their agreement may look like but IPS will make 25%+ on the majority of medications dispensed, sometimes 50%+ on own imported stuff (minus payment processing fees, their own courier costs etc).

We do know margins directly for numerous brands, but can't publish for obvious reasons.

The average patient is on 30g per month, average prescription cost around £200 - with the figures above you can see how it can work at scale.

 

[node]

Straight from the profit of IPS Pharma we'd expect, no idea what their agreement may look like but IPS will make 25%+ on the majority of medications dispensed, sometimes 50%+ on own imported stuff.

We do know margins directly for numerous brands, but can't publish for obvious reasons.

The average patient is on 30g per month, average prescription cost around £200 - with the figures above you can see how it can work at scale.

Its great your back in the forum again giving us the latest data - and I 100% realise: <rock> YOU <hardplace>... but the only way to get clarity is to communicate what your able to as soon as you get it, I feel. Very hard I know NDAs, every1s under it/2025 etc. The industry either gets its act together THIS year or they might miss the boat to Very Large players, such as Curaleaf, Mamedica® who are, I suspect hammering out same day logistics and automation... Remember both of these companies are pure Phoenician so they will work together... and quickly. Not to mention the looming threat from BM continually redoubling and GYO for those who can risk it.

 

[Muiredach]

Its great your back in the forum again giving us the latest data - and I 100% realise: <rock> YOU <hardplace>... but the only way to get clarity is to communicate what your able to as soon as you get it, I feel.

Appreciate the kind words, only reason I've been somewhat absent (@GrownHealth is a superstar at keeping me informed) is just due to how busy we've been past few months. Both launching new features, and trying to keep up with the tidal wave of new releases. I'm seriously struggling to keep up on a personal level, but our automated pharmacy tracking has helped lift the load quite a bit

Very hard I know NDAs, every1s under it/2025 etc.

We have never signed an NDA before (except with CannCare, to discuss patient/industry issues when necessary while respecting GDPR), we also won't sign them with companies in the industry as a general policy because we can never limit the freedom of our future reporting

 

[node]

Appreciate the kind words, only reason I've been somewhat absent (@GrownHealth is a superstar at keeping me informed) is just due to how busy we've been past few months. Both launching new features, and trying to keep up with the tidal wave of new releases. I'm seriously struggling to keep up on a personal level, but our automated pharmacy tracking has helped lift the load quite a bit


We have never signed an NDA before (except with CannCare, to discuss patient/industry issues when necessary while respecting GDPR), we also won't sign them with companies in the industry as a general policy because we can never limit the freedom of our future reporting

I'm always happy to be proven wrong - which can be on a daily basis in this field and previously in any new market. The pace now, I would say (in pure data terms) is roughly equivalent to Nokia Mobile Phones c.early-90s so they bought the largest/best UK company (technophone) and the rest is history. I note that the COO of Medicann was very succesful in that industry so perhaps they might apply that experience more? I would.