The cannabis industry faces hurdles with increased regulations and competition

By ROSE LEUNG

Despite new innovations in research and development, the cannabis industry still faces challenges from legalization.

Gillian Vandermeirsch, the research and development director of Delta-based cannabis producer Pure Sunfarms, said that “the industry is definitely changing.”

“Over time it’s gotten tougher. There’s competition,” she said. “The regulations in this industry are very tough. So compliance is a very big part of the business.

Taxes are heavy.”

She said outsourcing research and development helps save time and cut expenses.

Research keeps rollin’

In January of this year, Langara College and Pure Sunfarms partnered to research and develop pre-rolled joints. It is part of a five-year project established in 2021. Backed by almost $4 million in funding, the project aims to research and develop innovations for cannabis use and production.

“As a company that is actually having to generate revenue and make money, you don’t have a lot of time for research,” Vandermeirsch said. “Having a partner that is dedicated to doing research and learning is an ideal marriage.”

Buzz kill

Recreational cannabis has been legalized in Canada since October 2018. The new laws have made it easier to obtain licences and permits for research while also indirectly creating barriers.

Michael Milloy, a professor in cannabis studies at UBC, said that his research has faced difficulties securing partnerships as a result of regulations. His research on medical cannabis relies on making deals with private companies to provide materials, but in the current industry climate it has proven difficult.

“There are definitely companies that are interested in doing research for research’s sake. We did have a company that had initially agreed to provide the cannabis we needed for our trial. But between getting the money from the government and getting all of the permits, they backed out,” Milloy said.

Regulations have made it difficult for businesses to profit and many have tried to cut expenses and “stopped participating in scientific research.”

“I think it’s really just more of a symptom of the larger problems in the cannabis industry in Canada,” Milloy said. “I hope [it] will be solved once more groups are making money and willing to invest some of their profits in expanding knowledge about cannabis and its impacts on Canadians.”

Langara looks to make best buds

Despite these barriers, institutions like Langara College have been successful in making themselves an appealing partner for research opportunities.
Nathan Jones, the assistant director of Langara’s Applied Research Centre, said that Langara offers a “generous intellectual property stance,” creating fewer barriers for partnerships between private companies and Langara College.

“When an external partner engages with Langara to conduct an applied research project, all of the [intellectual property] that’s generated as a direct result of that project belongs outright to the partner,” Jones said.

He said that this policy paired with Langara’s success in obtaining large amounts of funding, has made it an attractive business partner for many companies.