Epsilon’s Expansion into European Cannabis Market Hinges on Regulatory Success

Strategic Partnership with Puro New Zealand

Epsilon Healthcare Limited (ASX, EPN) has announced a pivotal manufacturing agreement through its wholly owned subsidiary, Epsilon Pharma Pty Ltd, with Puro New Zealand Limited, Australasia’s largest medicinal cannabis cultivator. This three-year deal positions Epsilon Pharma as a key contract development and manufacturing organisation (CDMO) supporting Puro’s entry into the UK medicinal cannabis market, with plans to expand into broader Europe.

The agreement forecasts approximately AU$6 million in manufacturing revenue over the initial term, representing about a quarter of Epsilon Pharma’s 2025 revenue. The first shipments are scheduled for Q1 2026, marking the start of a significant new revenue stream and international footprint expansion for Epsilon.

Leveraging EU GMP Certification and Export Capabilities

Epsilon Pharma’s ability to manufacture and prepare Good Manufacturing Practice (GMP) certified finished formulation products underpins this partnership. The company’s EU GMP certification and compliance are critical assets that enable it to meet stringent regulatory standards required by the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) and other European regulators.

This deal not only optimises Epsilon’s manufacturing infrastructure but also validates its strategic investments in regulatory licensure and export readiness. The partnership highlights Epsilon’s growing reputation as a reliable and scalable healthcare solutions provider capable of servicing international markets with high-quality pharmaceutical and natural medicine products.

Market Expansion and Operational Readiness

With the UK as the initial target market, Puro anticipates allocating half of its 2026 production volume to this export opportunity. Epsilon is focused on ensuring full regulatory compliance, securing export licences from the Australian Office of Drug Control, and aligning product specifications with UK standards. Concurrently, the company is finalising supply chain logistics and quality assurance protocols to guarantee product integrity throughout manufacturing and distribution.

Both companies view this agreement as the foundation for a long-term commercial partnership that will extend across the UK and European markets. This collaboration reflects a broader trend of medicinal cannabis companies seeking trusted manufacturing partners with proven regulatory and operational expertise.

Leadership Perspectives and Future Outlook

Peter Giannopoulos, Managing Director and CEO of Epsilon Healthcare, described the agreement as a significant milestone that underscores the commercial value of Epsilon’s expanded manufacturing capabilities and international licensure. He emphasised the company’s readiness to deliver export-ready products at scale, meeting global standards and growing international demand.

Similarly, Sank MacFarlane, CEO of Puro New Zealand, highlighted the strategic importance of partnering with a best-in-class EU GMP manufacturing platform to support Puro’s UK launch and European scaling. He noted that this partnership aligns with Puro’s commitment to quality and long-term market leadership.

Strategic Growth in a Rapidly Evolving Market

Epsilon Healthcare recognises Europe as a key growth region and is actively pursuing additional CDMO opportunities to expand its global footprint. This agreement with Puro is a clear demonstration of Epsilon’s disciplined commercial execution and its ambition to transform emerging opportunities into sustainable shareholder value within the evolving international life sciences landscape.