Development of illegal cannabis plantations over the past 50 years has left Tairāwhiti home to ‘legacy’ genetics developed over generations, listed bioscience company Rua Bioscence chief executive Paul Naske says.
He says it is these unique cannabis strains that are grown and discovered at Rua’s facility in Mangaoporo.
“For more than 50 years, growing cannabis in New Zealand has been about back-door expertise that’s been developed illicitly,” Naske says.
“Now, we have an opportunity for this expertise to flourish, supported by our scientists and our own legacy growers who deeply understand how premium cannabis plant genetics can form effective medical solutions.”
Naske says this is the competitive advantage they have on the global stage and Australia is the first of a number of countries which will receive their genetics.
Rua is a New Zealand cannabis pharmaceutical company aiming to be a leading producer of cannabinoid-derived medicines.
The company was established in 2017 in part to support local economic development in the Tairāwhiti (East Coast) region, and is a pioneer in the New Zealand medicinal cannabis sector.
It was the first company in New Zealand to obtain a licence to cultivate cannabis for research purposes. Rua operates in the research, cultivation, extraction and manufacturing parts of the medicinal cannabis supply chain.
Cannabis companies are trading in a difficult climate because of strict government regulations.
One way Rua is dealing with that is by expanding research and development.
Last year Rua and Rangiwaho marae obtained a licence to cultivate the indigenous fungi, Psilocybe Weraroa, to treat addiction and mental health issues in Te Tairāwhiti.
Now, it has launched a new product, Rua Rau Hiwa, a dried flower which has both THC and CBD and can treat a number of conditions including but not limited to sleep disorders, anxiety-related disorders, chronic pain, and chemotherapy-induced nausea and vomiting.
Naske says the launch of Rua Rau Hiwa marks a milestone achievement as it shows the business is fulfilling the commercial model which focuses on both ends of the value chain - genetics and international distribution.
“We are proud to offer Rua’s medicinal cannabis genetics, sourced from New Zealand’s legacy market to thousands of patients across Australia,” Naske says.
Australia is one of the world’s largest medicinal cannabis markets with an estimated worth of $450 million. In 2023 Australia imported over 42 tonnes of medicinal cannabis which was a 69% increase from the previous year.
Rua has four distributors in Australia - one covering 50% of the market and distributing to around 200,000 patients nationwide.
The company is now focusing on introducing New Zealand genetics into the German market in the next year.
Today Rua Bioscience is trading at four cents a share, which is down 60.18% from a year ago.
