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Ep. 374: Panaxia (Tour)

Cannabis Economy Podcast
Ep. 374: Panaxia (Tour)

Ep. 374: Panaxia (Tour)

Arturo from Panaxia explains the processes and equipment that go into producing pharmaceutical cannabis: “Regular analytical systems allow you to see cannabinoids to the milligram level. This machine allows you to see to the nanogram levels, now that allows you to do two things. One of them is detect the levels of cannabinoids in the blood stream, and it’s very important for us once we go for clinical trials. For us as a pharmaceutical company, a clinical trial can never be subjective. It has to take the measurements of the cannabinoids in the blood stream, and check pharmacokinetics.”

Transcript:

Arturo Panaxia: We're manufacturing hundreds of different dosage forms for conventional pharmaceutical products on a regular basis. They are now manufacturing anti-lice solution, over here they are packing first aid stick. So-

Seth Adler: -With cannabis inside?

Arturo Panaxia: No, these are traditional pharmaceuticals. So these are eye drops, they are packing (which they are packing now) various creams. Over there they are probably manufacturing one of the other solutions.

Seth Adler: So this is the bread and butter. This is what we've been doing everyday for many, many years.

Arturo Panaxia: Exactly and that's where are we coming for the cannabis business.

Seth Adler: This is what informed you in terms of the cannabis business.

Arturo Panaxia: Well, that was the basis, and still is. That's the basis, that's what makes us know how to work in the industry like a pharmaceutical company. This is one of the laboratory, you will see three of them as we proceed.

Seth Adler: Yeah and I've been in many of these in the states, and it's surprising to me how similar it looks-

Arturo Panaxia: -Pharmaceutical company is a pharmaceutical company right?

Seth Adler: Well, no no, it's a cannabis company.

Arturo Panaxia: Really? Okay.

Seth Adler: And that's what's amazing. No because we've had, you know, in the United States we've had labs like this on site in cannabis companies and in cannabis, you know, labs specifically.

Arturo Panaxia: Okay and these are the team from Tree of Life.

Seth Adler: Cheers, there we go.

Arturo Panaxia: Another Orlandi laboratory. Over there we'll see that these are the clean rooms, I hope we can enter without.. No we can't unfortunately.

Seth Adler: That's fine.

Arturo Panaxia: They're working there. Over here it's, you can see from here the clean room over there, here we are manufacturing. This is a packing room, but over inside there it's a clean room where we are manufacturing the dermal fillers. The injections used to treat the facial wrinkles. So there are a bunch of products.

Seth Adler: But just if you go to any cannabis company in the United States, they have the coats on, they have the hair nets on, and everything. We have decided-

Arturo Panaxia: -Well I think that it's not just dressing up like a pharmaceutical-

Seth Adler: -Any place that I've been to, which it has the equipment. My point is, that we have had this reality in the United States, and we've decided to seed the control to other countries.

Arturo Panaxia: Well there's gonna be a lot of RND.

Speaker 3: In other places in the world, nobody produces according to GMP standard. Not because nobody have cannabis GMP standards, unless Israel want it. Until we have the IMC, GMP, and everybody in Israel have to work according to these standards, and then because of it we are producing here in Israel the medical grade cannabis products.

Seth Adler: There we go. So it's essentially self regulated in the United States, whereas in Israel it is not.

Arturo Panaxia: I think that's a good point, and I think that you are seeing, in the last couple of years, you are seeing more and more R&D. But I'm not sure you are seeing GMP protection facilities yet. We are working, again, very much focused on R&D. It's not enough, I mean you can't stop shiva. [inaudible 00:05:14] PHD's. It's not enough to have dirty products, we always want, as I told you, to proceed and continue our-

Seth Adler: -How many new products a year, or how many new products every six months?

Arturo Panaxia: Well I would say three of four each-

Seth Adler: -in cannabis?

Arturo Panaxia: In cannabis, each-

Seth Adler: -each year?

Arturo Panaxia: No each six months, or even sometimes each quarter.

Seth Adler: Three or four each quarter, wow.

Arturo Panaxia: We are now seeing the products, which we have started working on probably two years ago or one and something. Eighteen months. Some of the machines you can see here, that's a MSMS machine.

Seth Adler: What does it do?

Arturo Panaxia: Regular, and you will see a bunch of them in the next room. Regular analytical systems allow you to see cannabinoids to the milligram level. This machine allows you to see to the nanogram levels, now that allows you to do two things. One of them is detect the levels of cannabinoids in the blood stream, and it's very important for us once we go for clinical trials. For us as a pharmaceutical company, a clinical trial can never be subjective. It has to take the measurements of the cannabinoids in the blood stream, and check pharmacokinetics. So, that is one thing that is important.
The second thing is to go, not for the most common twelve cannabinoids that we are seeing and that we are testing on a regular basis, but to delve sometimes a little bit deeper into the more rare cannabinoids.

Arturo Panaxia: We're manufacturing hundreds of different dosage forms for conventional pharmaceutical products on a regular basis. They are now manufacturing anti-lice solution, over here they are packing first aid stick. So-

Seth Adler: -With cannabis inside?

Arturo Panaxia: No, these are traditional pharmaceuticals. So these are eye drops, they are packing (which they are packing now) various creams. Over there they are probably manufacturing one of the other solutions.

Seth Adler: So this is the bread and butter. This is what we've been doing everyday for many, many years.

Arturo Panaxia: Exactly and that's where are we coming for the cannabis business.

Seth Adler: This is what informed you in terms of the cannabis business.

Arturo Panaxia: Well, that was the basis, and still is. That's the basis, that's what makes us know how to work in the industry like a pharmaceutical company. This is one of the laboratory, you will see three of them as we proceed.

Seth Adler: Yeah and I've been in many of these in the states, and it's surprising to me how similar it looks-

Arturo Panaxia: -Pharmaceutical company is a pharmaceutical company right?

Seth Adler: Well, no no, it's a cannabis company.

Arturo Panaxia: Really? Okay.

Seth Adler: And that's what's amazing. No because we've had, you know, in the United States we've had labs like this on site in cannabis companies and in cannabis, you know, labs specifically.

Arturo Panaxia: Okay and these are the team from Tree of Life.

Seth Adler: Cheers, there we go.

Arturo Panaxia: Another Orlandi laboratory. Over there we'll see that these are the clean rooms, I hope we can enter without.. No we can't unfortunately.

Seth Adler: That's fine.

Arturo Panaxia: They're working there. Over here it's, you can see from here the clean room over there, here we are manufacturing. This is a packing room, but over inside there it's a clean room where we are manufacturing the dermal fillers. The injections used to treat the facial wrinkles. So there are a bunch of products.

Seth Adler: But just if you go to any cannabis company in the United States, they have the coats on, they have the hair nets on, and everything. We have decided-

Arturo Panaxia: -Well I think that it's not just dressing up like a pharmaceutical-

Seth Adler: -Any place that I've been to, which it has the equipment. My point is, that we have had this reality in the United States, and we've decided to seed the control to other countries.

Arturo Panaxia: Well there's gonna be a lot of RND.

Speaker 3: In other places in the world, nobody produces according to GMP standard. Not because nobody have cannabis GMP standards, unless Israel want it. Until we have the IMC, GMP, and everybody in Israel have to work according to these standards, and then because of it we are producing here in Israel the medical grade cannabis products.

Seth Adler: There we go. So it's essentially self regulated in the United States, whereas in Israel it is not.

Arturo Panaxia: I think that's a good point, and I think that you are seeing, in the last couple of years, you are seeing more and more R&D. But I'm not sure you are seeing GMP protection facilities yet. We are working, again, very much focused on R&D. It's not enough, I mean you can't stop shiva. [inaudible 00:05:14] PHD's. It's not enough to have dirty products, we always want, as I told you, to proceed and continue our-

Seth Adler: -How many new products a year, or how many new products every six months?

Arturo Panaxia: Well I would say three of four each-

Seth Adler: -in cannabis?

Arturo Panaxia: In cannabis, each-

Seth Adler: -each year?

Arturo Panaxia: No each six months, or even sometimes each quarter.

Seth Adler: Three or four each quarter, wow.

Arturo Panaxia: We are now seeing the products, which we have started working on probably two years ago or one and something. Eighteen months. Some of the machines you can see here, that's a MSMS machine.

Seth Adler: What does it do?

Arturo Panaxia: Regular, and you will see a bunch of them in the next room. Regular analytical systems allow you to see cannabinoids to the milligram level. This machine allows you to see to the nanogram levels, now that allows you to do two things. One of them is detect the levels of cannabinoids in the blood stream, and it's very important for us once we go for clinical trials. For us as a pharmaceutical company, a clinical trial can never be subjective. It has to take the measurements of the cannabinoids in the blood stream, and check pharmacokinetics. So, that is one thing that is important.
The second thing is to go, not for the most common twelve cannabinoids that we are seeing and that we are testing on a regular basis, but to delve sometimes a little bit deeper into the more rare cannabinoids.

Seth Adler: So that's where I was going. So THC obviously we need to keep track of that, right? It's psychoactive, CBD is very well known. As far as CBG, CBC, where are with THC and with the acidics?

Arturo Panaxia: Exactly, the acidics 8-hydroxy, 11-hydroxy. These are the ones we are testing CBC, these other ones we are testing on a regular basis. Each product is being tested for all dose, but we want to go forth-

Seth Adler: -Even further.

Arturo Panaxia: Yes, CBD, names that most people have never even heard of and there are some computational work for putatives and that's much deeper. So because, if you're willing have [crosstalk 00:07:41]
Yeah, two, three, four years. As we go into the more complex products, it takes longer. As I told you, it takes longer to develop. As I told you, during the formulations it was very relatively easy for us because that's the regular cost of business. As we go deeper in to the cannabinoids, into aspects which have not been explored before, it takes a little longer.

Seth Adler: Yeah, do you have CBG products that are coming to market? You say, "We do these all the time"-

Arturo Panaxia: -We are seeing CBG, we are still not putting the product, which is completely CBG. That's something that we still don't know-

Seth Adler: -Timeline on that? Roughly?

Arturo Panaxia: Well the idea is to focus on full spectrum and elevate CBG will never be only CBG.

Seth Adler: Oh okay, but elevated CBG-

Arturo Panaxia: -Elevated CBG I expect within twelve months.

Seth Adler: There we go. Okay, perfect.

Arturo Panaxia: Just as we are working with Doble is doing now the disintegration, the solutions, the other device. These are tests conducted for the tablets.

Seth Adler: [crosstalk 00:08:46] the tablets in there?

Arturo Panaxia: Yeah, you can see.

Seth Adler: So you can describe this better than I can.

Arturo Panaxia: Maybe they can describe it better than I can.

Seth Adler: Okay, so go ahead. Put your hand on the microphone if you would.
So what's happening here?

Ben: So this is the disintegration test device. Basically what you do is, you submerge the tablets in water. It's supposed to be set to 37 degrees Fahrenheit, which simulates the body temperature inside the stomach. Basically what you are looking for is how fast does the tablet disintegrate. In this particular case, we are trying to work on the femulation of the sublingual tablets. So it's very critical to get a fast disintegration time so it can absorb in the oral cavity.

Seth Adler: Okay, thank you, fantastic. What was your name, just quickly?

Ben: Ben

Seth Adler: Ben, thanks Ben.

Arturo Panaxia: Since ninety percent of the population, which consumes medication, takes that in a tablet form. You don't want to just take a flower powder and just crunch into a tablet. That doesn't make sense. You want to take the extraction, convert it into a free flowing powder, which you can punch as a tablet and then you can control the levels of cannabinoids, the concentration, [inaudible 00:10:11] everything that we might expect for any other medication. So we are focusing quite a lot on tablets.

Seth Adler: Excellent, okay. You said focusing on tablets, and you mentioned there is a broader range of distribution kind of methods. But what else is, you know, kinda up at the level of tablets?

Arturo Panaxia: There is a nice formulation which we call bastilles. Bastilles are semi-solid large tablets which are held in the buccal cavity in order to absorb-

Seth Adler: -Almost like a gel caplet?

Arturo Panaxia: Yes, but it's a little bit harder because you want it to take a little bit longer to dissolve so that everything will be absorbed through the buccal blood streams. But the idea is that we had to develop a formulation that allows us to mask the taste of the cannabinoids because there are taste issues and you want the patient to hold it in their mouth. So we have developed a formulation, which people are unable to detect when put against a placebo. People are unable to detect which is which. So that's a nice thing.

Seth Adler: Yeah, that's what you want right?

Arturo Panaxia: That's what we have. Actually this product is soon to hit the shelves in the next, about, month or two.

Seth Adler: Excellent and you say buccal, that's in the mouth right? So this is why ferme la bouche, close your mouth, right?

Arturo Panaxia: Yes. Wow, I think des bouche. My french is not that good-

Seth Adler: -Neither is mine. That's the whole thing. That's the only thing my french teacher told me. Ferme la bouche.

Arturo Panaxia: So we are now in the QC lab, where we mentioned the illegal system, validated so that two HBOC machines here running on a regular basis because for each batch that is being produced we test the dose at eleven in cannabinoids, which we are doing on a regular basis. And that is for each batch of production.

Seth Adler: Okay, fantastic. Alright.

Arturo Panaxia: We'll go into production.

Seth Adler: Sure, please.
And then we'll probably let you get back to work I would imagine.

Arturo Panaxia: Well, what we're doing now is more fun.

Seth Adler: Fair enough, fair enough.
So we are going from one place to another here right?

Arturo Panaxia: [crosstalk 00:12:30] Yes, everything in the security control-

Seth Adler: -Explain what it is? It's your fingerprint.

Arturo Panaxia: This is because of the IMCG-SP rules. It's the good security procedures because we must have security, tough security about every part of this eco system, or this part of the chain. That's why everything is so secure here.

Seth Adler: And it is all by fingerprint?

Arturo Panaxia: Our access is-

Seth Adler: -Is that your choice or is that the standard?

Arturo Panaxia: No that's our choice. We had to go for the highest levels of security, we had to submit. Like I told you, a dossier for the product, you have to submit a file which details the security of all this cite. So, and that was one part you, of course, you can see that-

Seth Adler: -Cameras in every corner of course. That's easy. That's table stakes.

Arturo Panaxia: Yeah, but the nice thing, you see those walls? They are two perimeters of steel sheets inside of all those walls.

Seth Adler: [crosstalk 00:13:41]

Arturo Panaxia: We are manufacturing within a vault. Just imagine. So these are the steel sheets inside here, and once we go into the [inaudible 00:13:51], there will be another perimeter of steel sheets. This door is fifteen minute burglary protection, standardized. So if somebody comes here, it's supposed to delay them by fifteen minutes at least. This wall is three centimeter glass, so if you have managed to enter and you draw a weapon here, it will laugh at you and smile.

Seth Adler: We're talking about the security guard behind the glass.

Arturo Panaxia: Yes, exactly because you can shoot as much as you want, it's bullet proof.
So this is GMP, we are entering through the entrance-

Seth Adler: -and every door is fingerprint, lock and key?

Arturo Panaxia: Yes of course.

Seth Adler: No, but the fingerprint thing is new to me.

Arturo Panaxia: Really?

Seth Adler: Something I haven't seen yet.

Arturo Panaxia: Actually once we have done that, we have implemented this in all our critical cites downstairs as well. Not even in the cannabis. We'll have to dress up if that's okay.

Seth Adler: No, of course. Whatever we need to do, so just take a break for a second here.
Okay so now that we've got the beard net, the hair net, the jumpsuit and even the mouth guard, we're gonna go in and what were you just saying?

Arturo Panaxia: I was just saying that there's a lot of factoids on other places, that are planning to manufact cannabis product or something, but GMP cannabis, all factories like this that we are going to enter now, there's none in the world unless you come to Israel.

Seth Adler: There we go, that's the distinction.

Arturo Panaxia: It's proud of what it's done!

Seth Adler: That's the distinction, exactly.

Arturo Panaxia: Warehouse there's no need for dressing up, we are dressing up because we will be entering production. This is a GMP corridor, it's a famous corridor in GMP which is maintained as a clean environment. Then from there you're entering the room with more and more obstacles for the air and for people to enter.
What you see here are the climate control chambers, which are used for validations of the shelf life experiments. Because if we want to put a product on the shelf, you have to make sure that it will survive and maintain the levels of active ingredients throughout the shelf life of the product. You can never be sure unless you validate it in an experiment.

Seth Adler: So here we are.

Arturo Panaxia: So here we are, we're putting it in a temperature and humidity controlled environment and we are testing them every three months for the levels of the active ingredients, and for various specification requirement. And only once we have achieved that, for three different batches, we can claim the shelf life for the product. This is the warehouse. You can see the walls, here again, have another level of metal sheets. Only here do you start smelling. We maintain different erv systems, and that's why you didn't smell it over there and you smell it here. Warehouse is not a critical zone, but there are two rooms here which are critical zones.
There's the sampling room and the sampling room is a separated area where, it's like a clean room and a hundred percent of the air coming into this room is fresh, coming from outside. It never circulated the factory and a hundred percent of the air from here is extracted out. The rational is that every batch of raw material coming from the growers is being tested and is sampled here in this room. Just assume if that batch was contaminated, and that contamination would go into the erv system and contaminate the whole facility.

Seth Adler: Can't have it.

Arturo Panaxia: Exactly, that's why we're extracting a hundred percent of the air out. But sometimes, theoretically, never gonna happen, but theoretically the factory can be contaminated and if you're bringing a fresh batch from the grower, and the factory is contaminated, it might contaminate that batch because you have opened it. So you want to make sure that all the air coming into this room is also a hundred percent fresh.

Seth Adler: So both ways you're protected.

Arturo Panaxia: Yes, exactly.

Seth Adler: This is room sixteen.

Arturo Panaxia: So, exactly.

Seth Adler: It's the only room that's got my number.

Arturo Panaxia: Yeah people call it candy land, but that's not the GMP phrase. Here there are different areas. The parts with the red tabs are the quarantined material. Of course, every raw material that is entering the facility is first going into quarantine and then it is being tested for again, contamination, but also for the different levels of cannabinoids, the [inaudible 00:19:07] that fit the specifications. Only once approved, it's being moved, it's being accepted to our inventory and being moved to the green shelves. So that's the difference.

Seth Adler: So the ones that are on the shelf, the three batches at a time, those are quarantined product?

Arturo Panaxia: Those are not even quarantined. That was not commercial manufacturing, just validation batches. So it's soon to be-

Seth Adler: -and these are ready to be shipped, the ones that are green?

Arturo Panaxia: These are ready to be shipped as a final product release and finished products, etcetera you can see over there.

Seth Adler: That's the life cycle of a-

Arturo Panaxia: -of a pharmaceutical product.

Seth Adler: Of life sciences so to speak.

Arturo Panaxia: Of life sciences as well, yeah.

Seth Adler: And so each of these rooms we've gone through, obviously under lock and key, went from testing to processing to manufacturing to shelf life to finally, final product.

Arturo Panaxia: Yes and of course, not every personnel limits. Not everybody can enter each room. Of course, not only because of security reasons by the way, we are more concerned here because everybody who was approved to enter the facility, was approved by the police and has been thoroughly tested for their background, etcetera. So we're not concerned, once you are inside, we are not concerned about security. We are more concerned about our mistakes. So this room is one of the most important ones because here are the labels of the products. In the GMP-

Seth Adler: -This is the packaging warehouse he's pointing to.

Arturo Panaxia: Exactly, just imagine what happens if somebody just switches the labels of two batches. That's terrible. That's double recoil. So this room is more, we're considering sometimes more secure than the warehouse.

Seth Adler: 'Cause it's the final mile, essentially.

Arturo Panaxia: Exactly. So again, we will have to put shoe covers here, is that okay?
And here we'll get the email, the largest-

Seth Adler: -Supermarket.

Arturo Panaxia: Supermarket chain wanted to join to be one of the cannabis distributors.

Seth Adler: Or retailers.

Speaker 5: It's the Walmart of Israel I would say.

Seth Adler: And that literally just happened? That literally just happened? Just now?

Arturo Panaxia: They just asked to join, yeah.

Seth Adler: But now they have to go through the tests right?

Arturo Panaxia: Of course!
Let me call it a quality requirement.

Seth Adler: There we go.

Arturo Panaxia: It's quality requirement, everybody can pass the test unless he stays in the standard.
This is Anat, who is our senior responsible pharmacist. She is in charge of each batch which is being released to the market. They don't even let me do that.

Seth Adler: I see, I see. Good to meet you.

Arturo Panaxia: Nobody comes here anymore, [inaudible 00:22:46] that's the problem with having people who are stronger than yourself.

Seth Adler: I see, yeah. But the goal is to surround yourself with-

Arturo Panaxia: -those who are better than you.
Better before your team than yourself.

Seth Adler: That's it, that's the key, that's the key.

Arturo Panaxia: So we are now to enter into the extraction room and the production room. We are passing through an airlock system, again, because we are in GMP and one of the worst fears here would be that the cross contamination issues.

Seth Adler: So we put on our masks, we put on our booties.

Arturo Panaxia: Yes and each door in this room, only one door can open simultaneously. We don't want air coming from the extraction room to pass into the production room or we don't want the air from here to enter into the extraction room. Once we will open this door, you will feel the wind, because this room here has the highest levels of pressure in order to act as an air obstacle for outside air to come in into that room.

Seth Adler: Here we go. Once again with the fingerprint.
Sliding door here.

Arturo Panaxia: And if I now do that, [crosstalk 00:24:12] because that one was opened.

Seth Adler: The security system will not allow him to open up another door, until it's closed.
If you can explain what he's doing, that would be great.

Oriam Rhanni: My name is Oriam Rhanni. I am a production worker here.

Seth Adler: So please explain what that is that we're looking at.

Oriam Rhanni: The whole process from the beginning? Okay.
So we start in the beginning with grinding the cannabis through that grinder. From there-

Seth Adler: -Which is enormous, compared to your grinder at home.

Oriam Rhanni: A lot bigger. From there, what we do is we split it into bags and freeze it. From there we start the extraction process. We mix it with ethanol. From the ethanol we take it through this buchner, okay? Through the buchner it leaves the actual cannabis plant up top and we get a liquid on the bottom.

Seth Adler: What would you say that liquid is?

Oriam Rhanni: It's basically...

Seth Adler: It's not oil.

Oriam Rhanni: It's not oil, it's not oil yet, it's the extract. It's basically all the ingredients, or all the cannabis without the plant itself.

Arturo Panaxia: It's the cannabinoids, some chlorophyll, which is being solubulized into the ethanol.

Seth Adler: So the ethanol is really doing the work here.

Arturo Panaxia: Here the ethanol is doing the work and over there, we'll be separating that and evaporating all the ethanol with no residual ethanol in the final extraction concentrate.

Seth Adler: Without getting too deep, how do you take the ethanol back out?

Arturo Panaxia: The idea is using different methods to remove the ethanol completely from the extract.

Seth Adler: Okay fair enough.

Arturo Panaxia: And you can see here which is the ethanol coming out of here. You can see the difference in colors. This is green with all the cannabinoids. Here is the ethanol is removed and you can see that the color doesn't pass. You cannot see any color in this ethanol.

Seth Adler: So, literally, there is a yellow glass instrument which is feeding into kind of a, looks like to me, a Dr. Frankenstein type spiral glass tube which is then letting out all of the ethanol. It's just pure clear ethanol in one and it looks like cannabis oil in the other.

Arturo Panaxia: The most important part is that ethanol has done all the extraction, but after we are finished with this, there is no residual ethanol at all and we are-

Seth Adler: -which you've tested for and you know.

Arturo Panaxia: Of course, of course.

Seth Adler: Okay excellent.

Arturo Panaxia: Not only tested but validated.

Seth Adler: There we go, there we go.

Arturo Panaxia: One thing which is important, and for this extraction, see how many pages, how thick is the protocol that we are-

Seth Adler: -that's maybe forty to fifty pages with specific-

Arturo Panaxia: -instructions, revels, which are being taken through the process. This is one of the parts of the validation, and the validation is the most important things because we must assure; and this will tell the IMC, GMP assuring that the same product will be whenever they make it. In the first time, in the fifth time, in the fiftieth time, in the fifty thousandth time. It always be the same product and that is one of-

Speaker 3: Each step is being manufactured, and then recorded. Just at GMP, the idea is that critical steps are even recorded by two people.

Seth Adler: The critical steps are required by two people?

Speaker 3: Yes exactly. You can see it's done by Oriam Rhanni and later on somebody will come and will add their signature to make sure that Oriam didn't make a mistake.

Speaker 3: We check it, we double check it, it's exactly like in the pharmaceutical industry. Everything must double check, everything must be validation, everything must be very accurate, and anything should double checked.

Seth Adler: Excellent, alright.

Arturo Panaxia: I think that, you know, when people ask me when the change occurs between a flower and a pharmaceutical, it's exactly this process. The extraction, which is done according to GMP standards, that's the difference.

Seth Adler: There we go.

Arturo Panaxia: Now, here, you will see simple packaging.

Seth Adler: And this is flower?

Arturo Panaxia: Just flower packaging. Here in Israel, even the flowers are considered a medication, which is manufactured according to GMP and it is counted before and after. So even if the camera is [inaudible 00:29:50], then you wouldn't be able to do it because it will be found out later on. But I think that it's important to see that even for this very simple process, just packaging in bags, see the paperwork. And we have sampled, everything is recorded. Every step is recorded, everything has to be done according to GMP.

Seth Adler: Validated, double validated.

Arturo Panaxia: Exactly.

Seth Adler: Even in simple packaging.

Arturo Panaxia: And that's the most simple, you wouldn't even imagine a simpler production.

Seth Adler: Flower in a bag.

Arturo Panaxia: Exactly. We can take off the clothes now.

Seth Adler: And I think we might be done here right or?
Alright so we'll make our way back to the office to say our goodbyes. But I guess, we've been sharing how this might be different, and how this definitely is different than what's going on anywhere else. And we've also gone through how this is similar to everything that you've done in the past as far as being a pharmaceutical company. And so, I wonder, we've drawn these distinctions, and we've drawn these similarities. As far as the growth of the market, is there anything that's in its way? Meaning, quite frankly, because of the very tough and specific standards, does that change your outlook on growth?

Arturo Panaxia: Not at all. We have built this facility in order to accommodate production for the complete Israeli market, and we never even thought to build it any other way than with GMP standards. There's hardly any change, GMP didn't change the game for us because we were used to do it ever since the beginning.

Seth Adler: If export is approved, how much will that change?

Arturo Panaxia: We are preparing that and we will probably have to double, or almost triple the facility for export. But currently, this facility can supply the whole Israeli market and, I could say unfortunately, but competition is always good. We have also competitors so we are not expecting substantial change because we have a capacity also to accommodate the first export deals that we are working on.

Speaker 3: The estimations are to [inaudible 00:32:58] and let our government know it and they will [inaudible 00:33:06] to Columbus. It's gonna add two zeroes in the number that we have now.

Seth Adler: As far as the potential of export for the economy.

Speaker 3: Visible potential.

Seth Adler: Why are you making that distinction?

Speaker 3: Because potential is huge, but the visible one, I mean, states that come to Israel that want to see what is happening here, to learn about medical cannabis because it's not only need to hear about it. It's learning how to make it in your states. So other countries have come to Israel. First of all, they want to adopt the IMC-GCP, the good clinical practice, what we're calling it, the green book in order to teach the doctors how to use medical grade cannabis to help the patients. Which country doesn't like to help their patients and their citizens? I mean the okay countries.

Seth Adler: Exactly, the ones that count.

Speaker 3: So only the countries that come here enough to show what is running here, what eco system we've made here in Israel, and then the other question is will you be able to export to us? And at this point we are extending, we are saying, "Eh sorry but we are waiting for our governmental decisions."

Seth Adler: And they will come, and Danny you will respond accordingly right? Thank you so much for your time.

Arturo Panaxia: Thank you so much, it was a great time.

Seth Adler: And there you have a tour of Panaxia, very much appreciate their time, very much appreciate your time. Stay tuned.

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Cannabis Economy is a real-time history of legal cannabis. We chronicle how personal and industry histories have combined to provide our current reality.