Where next for the Cann Group share price after new pharmacy deal?

We take a look at the specifics behind the recently announced Cann Group-Symbion deal.

Just last week Cann Group (ASX: CAN) announced a potentially significant agreement with Symbion – a key Australian healthcare supplier – to carry and supply Cann Group’s full imported product range.

This new partnership, mind you, looks to have done little to elicit enthusiasm amongst would-be investors, as the Cann Group share price continues to lag its own highs and the broader market.

Indeed, the last six months has proven to be a trying time for Cann investors, with its share price more than halving in that period. The Cann Group share price currently trades close to its 52-week low at $1.04 per share and a far way off the broker Canaccord’s 12-month price target of $2.60 per share.

The ASX 200, by comparison has risen around 7.5% in the last six months.

Cann Group’s volatile price action has persisted even as the company has achieved strong organisational efficiency. Indeed, speaking of recent developments, Cann Group’s CEO, Peter Crock said:

'We are now operating our existing Southern and Northern production facilities at full capacity, with in excess of 40 harvests now completed, and we are advancing our product manufacturing capabilities with IDT Australia.’

Practise trading Australian stocks with an IG demo account now or read on to discover more about the Cann Group-Symbion deal.

Cann Group share price: specifics of the deal

Centrally, Symbion is involved in the provision of healthcare supplies, with a network of more than 4,000 retail pharmacies and 1,300 hospitals throughout Australia.

In addition to this, the company further pointed out that this 'distribution arrangement with Symbion will ensure that products can be supplied through approved pathways to patients throughout Australia who have been approved via the Special Access Scheme for medicinal cannabis treatment.'

It will be interesting to see what kind of (if any) tangible impact that access to Symbion's expanded network will have on Cann Group’s financial results in the short and medium-term.

In addition to this and in the same media release, Cann Group confirmed that it had received a shipment of THC oil – from the Canadian-based Aurora Cannabis, who Cann Group already has a strategic partnership with. Permits are currently in place for the additional imports and supply of similar products.

A $75 billion question

Mind you, it’s not simply the Symbion deal that may potentially prove beneficial for the Cann Group share price in the future. The company also pointed out during last week’s media release that:

'We are well underway with our major expansion program near Mildura, which is expected to be commissioned towards the end of next calendar year and should consolidate Cann's position as the leading local producer, with ample capacity to meet local patient needs.'

With Cann Group’s expansionist plans in focus, it is well worth traders, investors and speculators remembering – and as we have written elsewhere – that ‘research suggests that the US legal cannabis industry could be worth as much as $75 billion by 2030.’

Such an ambitious figure also likely goes a long way in explaining Canaccord’s bullish $2.60 price target on Cann Group (ASX: CAN).

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.