New Lab Launches in Response to California Cannabis Testing Bottleneck
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Gala Pharmaceutical.has announced that it expects to build its first state-of-the-art testing laboratory that will fulfill the new ISO requirements set by the City of Long Beach and the State of California in accordance with the Medical Marijuana Regulation and Safety Act. The Act will require the California Department of Public Health to enforce its provisions related to the manufacturing and testing of medical cannabis across the State.
Gala Pharmaceutical plans to use this facility to provide testing services to legal Marijuana and Hemp growers in the state of California. Industry participants have identified this requirement as a key area of strategic importance. At a March California Cannabis Industry Association (CCIA) meeting, Jackie McGowan the director of local licensing and business development for Sacramento based K Street Consulting, said, “There’s a lack of labs to test quality product.” The CCIA estimates that only approximately 20 testing labs have received temporary business licenses in California. Given the industry’s competitive landscape, meeting the new licensing requirements will be key to successful product development and marketing. GPI anticipates that marijuana-testing labs will be critical for California’s legal cannabis industry. As such, GPI expects high demand for licensed testing services and believes that there will be a shortage of testing services creating long waits for results, delaying product approvals.
Gala Pharmaceutical’s Three Primary Goals
1. The development of innovative breeding and culture tools for growing crops, vegetables, and other high-value plant species
2. Providing genetic fingerprinting and sequencing of various crop species
3. Laying the groundwork to focus on the drug formulation process and chemical testing
“We believe Gala Pharmaceutical’s growth outlook is as bright as ever given our clear financial and operational outlook supported by a favorable regulatory environment,” said Dr. Maqsood Rahman, Chief Executive Officer of Gala Pharmaceutical, Inc. “The buildout of our initial testing laboratory is a clear reflection of the progress we are making in establishing the Gala Pharmaceutical brand as one of the most prominent, safe and trustworthy testing laboratories in the State of California for cannabis,” concluded Dr. Rahman.
Favorable Regulatory Environment Expected to Drive Gala’s Future Growth
As of January 1, 2018, all cannabis products are now required to be tested for cannabinoid levels, moisture content, Category II Residual Solvents, Category I residual pesticides, microbial impurities, and the homogeneity of edible cannabis products. On July 1, 2018, Category I residual solvents, Category II residual pesticides and foreign materials testing will be mandated as well as terpenoid, mycotoxin, and heavy metals testing and water activity testing by December 1, 2018. The Act mandates that, starting in 2018, only lab-tested products may be sold by licensed retailers.