Where next for the Cann Group share price after new pharmacy deal?

Just last week Cann Group (ASX: CAN) announced a potentially significant agreement with Symbion – a key Australian healthcare supplier – to carry and supply Cann Group’s full imported product range.

This new partnership, mind you, looks to have done little to elicit enthusiasm amongst would-be investors, as the Cann Group share price continues to lag its own highs and the broader market.

Indeed, the last six months has proven to be a trying time for Cann investors, with its share price more than halving in that period. The Cann Group share price currently trades close to its 52-week low at $1.04 per share and a far way off the broker Canaccord’s 12-month price target of $2.60 per share.

The ASX 200, by comparison has risen around 7.5% in the last six months.

Cann Group’s volatile price action has persisted even as the company has achieved strong organisational efficiency. Indeed, speaking of recent developments, Cann Group’s CEO, Peter Crock said:

'We are now operating our existing Southern and Northern production facilities at full capacity, with in excess of 40 harvests now completed, and we are advancing our product manufacturing capabilities with IDT Australia.’

Practise trading Australian stocks with an IG demo account now or read on to discover more about the Cann Group-Symbion deal.

Cann Group share price: specifics of the deal

Centrally, Symbion is involved in the provision of healthcare supplies, with a network of more than 4,000 retail pharmacies and 1,300 hospitals throughout Australia.

In addition to this, the company further pointed out that this 'distribution arrangement with Symbion will ensure that products can be supplied through approved pathways to patients throughout Australia who have been approved via the Special Access Scheme for medicinal cannabis treatment.'

It will be interesting to see what kind of (if any) tangible impact that access to Symbion's expanded network will have on Cann Group’s financial results in the short and medium-term.

In addition to this and in the same media release, Cann Group confirmed that it had received a shipment of THC oil – from the Canadian-based Aurora Cannabis, who Cann Group already has a strategic partnership with. Permits are currently in place for the additional imports and supply of similar products.

A $75 billion question

Mind you, it’s not simply the Symbion deal that may potentially prove beneficial for the Cann Group share price in the future. The company also pointed out during last week’s media release that:

'We are well underway with our major expansion program near Mildura, which is expected to be commissioned towards the end of next calendar year and should consolidate Cann's position as the leading local producer, with ample capacity to meet local patient needs.'

With Cann Group’s expansionist plans in focus, it is well worth traders, investors and speculators remembering – and as we have written elsewhere – that ‘research suggests that the US legal cannabis industry could be worth as much as $75 billion by 2030.’

Such an ambitious figure also likely goes a long way in explaining Canaccord’s bullish $2.60 price target on Cann Group (ASX: CAN).