At a Glance
- Companies: Epsilon Healthcare Limited (ASX: EPN); Puro New Zealand Limited
- Locations: Australia (Epsilon Pharma manufacturing); UK/Europe (initial target market)
- Deal value: Three‑year agreement; forecast AU$6 million manufacturing revenue for Epsilon over term
- Focus area: GMP‑certified medicinal‑cannabis finished‑formulation products for respiratory and related indications
- Next steps: UK export launch in Q1 2026; potential expansion into additional European countries
What happened?
Epsilon Healthcare has announced that its wholly owned subsidiary, Epsilon Pharma Pty Ltd, has entered a manufacturing agreement with Puro New Zealand Limited to support European expansion of its medicinal‑cannabis portfolio. Under the pact, Epsilon Pharma will manufacture and prepare GMP‑certified finished‑formulation products using Puro’s raw materials, initially for export to the UK, with plans to extend into other European markets.
Why does it matter?
The deal leverages Epsilon’s EU‑GMP‑certified Southport manufacturing facility in Australia to supply high‑quality, export‑ready products into the UK and, later, wider Europe, strengthening both companies’ positions in the medicinal‑cannabis space. For Epsilon, the agreement diversifies its CDMO pipeline and adds recurring revenue, while for Puro it unlocks a scalable route to bring its organic, sun‑grown New Zealand crops into regulated European markets.
Who’s behind it?
Epsilon Healthcare is an Australian‑based, globally active healthcare and pharmaceuticals group with contract development and manufacturing operations, medicinal‑cannabis assets and clinic networks. Puro New Zealand is the largest medicinal‑cannabis cultivator in New Zealand and the only BioGro‑certified organic producer in Australasia.
How was it achieved?
The partnership builds on Epsilon’s EU‑GMP certifications and export‑licensing infrastructure, allowing it to handle end‑to‑end manufacturing, regulatory compliance and export logistics for Puro’s products. The initial term is three years, with Puro expecting to allocate about half of its 2026 annual production to fulfil the UK‑focused export opportunity.
What’s next?
Epsilon Pharma expects to begin generating revenue from the agreement in the current quarter, with a full run‑rate contribution by mid‑2026. The companies will focus on regulatory readiness and operational scale‑up for the UK launch, then explore additional European countries as the partnership matures.
What are people saying?
Epsilon Healthcare Managing Director and Group CEO Peter Giannopoulos said the deal “underscores the commercial value of our investments in expanding manufacturing capabilities and international licensure” and demonstrates Epsilon’s ability to support clients “seamlessly from manufacturing through to export.” Puro CEO Sank MacFarlane described the UK as a “cornerstone market” and the partnership as the foundation of a long‑term strategy to expand across Europe.