A medicinal cannabis company sourcing supply from Tasmania believes there is potential for huge growth in the industry.
That could potentially lead to significant export opportunities for the state.
With the opioid industry under increasing pressure due to problems with addiction and US legal developments, Perth-based AusCann Group Holdings Limited has told investors it will target the Australian market first with its medical cannabis products, followed by potential exports.
It said its initial focus would be on chronic pain.
AusCann announced in July Westbury-based Tasmanian Alkaloids had entered a three-year agreement to supply it with cannabis resin.
Tasmanian Alkaloids would supply at least 30 per cent of AusCann's cannabis resin requirements for the next three years, with an option for a three-year extension.
Tasmanian Alkaloids is best known for producing medicinal opiates from poppies grown in Tasmania.
In an investor presentation released on Wednesday, AusCann described itself as being "engaged in product innovation and clinical partnering within the emerging multi-billion-dollar medical cannabis growth sector".
It said it had received all required Australian licences and proprietary capsules were expected to be released to clinics for trials towards the end of 2019.
The company, chaired by doctor and former Liberal MHR Mal Washer, said the available pharmaceuticals for treatment of chronic pain had limited effectiveness.
It said there was a growing body of evidence suggesting medical cannabis could provide benefits for people suffering from chronic pain and associated conditions.
It said the chronic pain treatment market was expected to exceed $100 billion by 2024.
AusCann noted medicinal cannabis had challenges.
They included healthcare practitioners not having been trained how to treat patients using cannabinoid-based medicines and the stigma associated with cannabis.
"Despite recent developments in cannabinoid medical research and the legislation of medical cannabis around the world, mainstream medical societies have yet to accept cannabinoid-based medicines as a legitimate medicine," it said.
It said it aimed to establish strong relationships with healthcare professionals and provide them with reliable cannabinoid-based pharmaceuticals backed by clinical evidence and the tools to personalise treatment outcomes for patients.