Rua Bioscience (NZE:RUA) said the Australian market has experienced "significant contraction" in medical cannabis prescribing volumes amid a Therapeutic Goods Administration review of the safety of unapproved products, according to a Wednesday filing with the New Zealand bourse.
However, medicinal cannabis is showing "strong signs of maturity and growth" in international markets, especially in Europe, in the face of recent international developments and discourse of a global economic slowdown, Rua added.
The company recently established RUA genetics in Canada, the second-largest cannabis market in the world after the US, adding to its presence in Germany, Australia, New Zealand, Czechia, and the UK, per the filing.
In Australia, the company expects a market reset after the regulatory review is complete, and is working to establish its products in new clinic chains.
Elsewhere, Rua plans to bring several products to the New Zealand market in the coming months, and is also working on product launches in Czechia scheduled for May. Additionally, the company is looking to expand in the UK with plans to incorporate its genetics through new channels and clinic chains.
In Germany, the company believes there is strong demand for consistent and reliable suppliers as significant regulatory changes seem unlikely following a review during which distributors reduced stock and scaled back imports. The German market remains competitive and continues to show strong signs of growth, Rua said.