Panaxia Labs Israel Ltd has announced a contractual agreement with research and development facility Panaxia Pharmaceutical Industries in Malta.

The deal between the largest manufacturer of medical cannabis products in Israel and the Maltese facility provides for the production and extraction of the company’s advanced products, such as oils, inhalers, sublingual tablets and suppositories for the European market.

The Israeli company said it will operate the Malta facility, which is ready to extract cannabis inflorescence. It has the capacity of producing several hundred thousand products annually, joining the range of products already manufactured in Israel.

According to Panaxia, the Maltese operations are expected to start within a few months, subject to complete conversion of the plant into a commercial facility meeting the requirements of the EU-GMP standard and to the receipt of regulatory approvals from the Maltese government.

Panaxia CEO Dadi Segal said: “Using the Malta manufacturing facility is a significant stepping stone as we enter the European market. We believe this makes Panaxia the first company in Israel in the field of medicinal cannabis to begin selling in the EU.

“We are in progressive stages of registering and certifying our advanced products and contracting distribution and marketing agreements – first in Germany and Denmark and then in other countries.”

He noted that, starting their manufacturing and marketing activities through the Maltese facility allows Panaxia to cut the time marketing the high-quality products developed in line with the international R&D capabilities of Panaxia, meeting the most rigorous standards.