Aurora Cannabis has acquired a UK licensed medical cannabis importer and wholesaler and a licensed pharmacy in a deal worth £2.1 million.

Aurora expands UK medical cannabis distribution

The Canadian medical cannabis company has acquired 100% of Internode Pharma and HAP Pharma through a wholly owned subsidiary.

Internode Pharma operates as a licensed importer and wholesaler, while HAP Pharma is a licensed pharmacy. Both companies operate from Birmingham, with HAP Pharma providing a virtual pharmacy service.

Aurora said the acquisition will give it greater control over the supply chain for its medical cannabis products in the UK, from production through to delivery to patients.

The company plans to use the businesses’ existing licences and infrastructure to reduce its reliance on third-party distribution services and increase its capacity to supply the UK market.

Miguel Martin, executive chairman and chief executive officer of Aurora, said: “The acquisition of Internode Pharma Limited and HAP Pharma Limited mark a further strategic milestone for Aurora as we continue to purposefully invest in expanding our leadership in the rapidly growing international medical cannabis market.”

He added: “Given the growing patient demand, strong acceptance of our products and increasingly prescriptive regulatory standards, the UK represents an exciting opportunity for us, and acquiring these companies provides Aurora with greater agility to more reliably serve UK patients.”

Acquisition adds licensed UK infrastructure

The acquisition covers the full share capital of both companies. Aurora paid the selling shareholders £2.1 million in cash at closing, subject to certain post-closing conditions.

Aurora said the transaction is expected to contribute to adjusted EBITDA in future quarters through operational efficiencies and reduced reliance on third parties. The company also intends to assess further investment in UK distribution capacity as patient demand increases.

The acquisition gives Aurora direct ownership of infrastructure covering the import, distribution and pharmacy stages of its UK medical cannabis supply chain.

Aurora said the UK is one of Europe’s largest medical cannabis markets and has a population of approximately 70 million people.

The company already operates across several international medical cannabis markets, including Europe, Australia and New Zealand, alongside its Canadian business.

UK medical cannabis market attracts further investment

Aurora’s acquisition follows increasing investment in the infrastructure supporting medical cannabis supply in the UK, where cannabis-based medicines can be prescribed for eligible patients under the country’s regulatory framework.

The company said its existing commercial, regulatory and operational capabilities will be used to support the integration of the acquired businesses and expand access to its products in the UK.

The deal also gives Aurora greater control over the route its medical cannabis products take into the UK market, rather than relying entirely on external importers, wholesalers and pharmacy providers.

Aurora said it will continue to assess opportunities to increase its UK distribution capacity as the market develops.