Bioxyne Limited is expanding its footprint with a new UK GMP-certified medicinal cannabis manufacturing site, backed by £850,000 in funding from South of Scotland Enterprise. This move positions the company to tap into the UK’s growing medicinal cannabis market, the second largest in Europe.
- £850,000 funding package including £500,000 loan and £348,250 grant
- New manufacturing and distribution site secured in Scottish Borders
- Facility fit-out and licensing applications targeted for completion in 2026
- UK medicinal cannabis market second largest in Europe with high patient spend
- Expansion supports Bioxyne’s international growth and local employment
Strategic Expansion into the UK Market
Bioxyne Limited (ASX, BXN), through its subsidiary Breathe Life Sciences UK Ltd (BLSUK), has announced a significant step in its international growth strategy by securing approximately £850,000 in funding from South of Scotland Enterprise (SOSE). This funding, comprising a £500,000 loan facility and a £348,250 grant, will be used to establish a Good Manufacturing Practice (GMP) certified medicinal cannabis manufacturing and distribution facility in the Scottish Borders region.
The new site mirrors the size of Bioxyne’s existing Australian facility, positioning BLSUK as a key player in the UK’s medicinal cannabis supply chain. The company aims to address the current shortfall in local manufacturing capacity, which has struggled to keep pace with rising demand.
Market Opportunity and Local Impact
The UK medicinal cannabis market is the second largest in Europe, trailing only Germany. Notably, UK patients have a substantially higher average annual spend on medicinal cannabis, estimated at around £3,261 per patient in 2024, compared to Germany’s £1,342. This spending power underscores the market’s potential and attractiveness for Bioxyne’s expansion.
Beyond commercial ambitions, the establishment of the facility is expected to be a significant economic boost for the Scottish Borders, creating jobs and attracting further investment into the region. Jane Morrison-Ross, Chief Executive of SOSE, highlighted the surge in inward investment inquiries and the region’s growing reputation as a hub for innovative life sciences companies.
Next Steps and Regulatory Pathway
Bioxyne plans to complete the fit-out of the new facility and submit applications for the necessary licenses from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) and Home Office during 2026. These approvals are critical to commencing manufacturing and distribution operations.
CEO Sam Watson expressed confidence in the UK market’s growth trajectory and the company’s ability to replicate its Australian success internationally. With an existing UK customer base, BLSUK is well positioned to deliver high-quality products and services tailored to local demand.
Broader Corporate Context
Bioxyne, through Breathe Life Sciences, operates across multiple international markets including Australia, Japan, and Europe. The company manufactures a range of controlled substances such as medicinal cannabis, MDMA, and psilocybin, and owns the Dr Watson® brand known for cannabis-based health products. This UK expansion complements its multinational footprint and diversified product portfolio.
As the medicinal cannabis sector continues to evolve, Bioxyne’s strategic investment in UK manufacturing capacity could prove pivotal in capturing market share and meeting regulatory standards that increasingly favour locally produced, GMP-certified products.
Bottom Line?
Bioxyne’s UK facility launch marks a critical milestone, but regulatory approvals and market uptake will determine its ultimate impact.
Questions in the middle?
- How swiftly will Bioxyne secure MHRA and Home Office licenses to begin operations?
- What scale of production and distribution capacity will the new UK site achieve initially?
- How will Bioxyne’s UK expansion influence its competitive positioning against other European cannabis manufacturers?