A B.C. company that received federal approval to produce and sell cocaine has backed away from a previous statement that had outlined plans to commercialize the controlled substance. And it emerged that a Victoria firm has received a similar approval for cocaine, opium and MDMA, also known as ecstasy.
Langley-based Adastra Labs issued a clarification Friday that said it is “not currently undertaking any activities with cocaine,” and its amended Controlled Drug and Substances Dealer’s Licence does not permit the firm to sell cocaine to the public.
Adastra Labs CEO Michael Forbes said in the original statement on Feb. 22 that the company would “evaluate how the commercialization of this substance fits” with the firm’s business model. That reference was removed in the latest statement.
The clarification issued Friday said: “The Dealer’s Licence issued to Adastra Labs does not permit Adastra Labs to sell coca leaf, psilocybin or cocaine to the general public. For cocaine, and under the Dealer’s Licence, Adastra Labs is only permitted to sell to other licensed dealers who have cocaine listed on their licence including pharmacists, practitioners, hospitals, or the holder of a section 56(1) exemption for research purposes under the Controlled Drugs and Substances Act (CDSA).”
Health Canada approved Adastra Labs’ licence amendment on Feb. 17 to allow the production, and limited sale and distribution of cocaine. Under the licence, Adastra cannot produce more than 250 grams of cocaine in 2023.
Meanwhile, Victoria’s Sunshine Earth Labs, a biosciences firm that “aims to bring a safer supply of drugs to the global market,” said it has been licensed to produce, sell and distribute cocaine, opium and MDMA.
Sunshine Earth Labs said in a statement it obtained an amended Controlled Drug and Substances Dealer’s Licence to include MDMA and cocaine last year. It said it received an amendment to possess, produce, sell and distribute opium and morphine in January. On Friday, Sunshine Earth also issued a revised statement, saying it is licensed to conduct activities with these controlled substances “under tight limitations imposed by Health Canada.”
“Sale is allowed to another licensed dealer, pharmacist, practitioner, or hospital employee provided they have the necessary Health Canada License. This license does not permit the sale of any of these substances to the general public,” Sunshine Earth Labs said in a statement Friday, a revision of one that it had issued on Thursday.
Scrutiny of the issue began Thursday when B.C. Opposition leader Kevin Falcon brought up Adastra’s original statement on commercialization plans during question period at the provincial legislature. The issue quickly triggered responses from both Prime Minister Justin Trudeau and B.C. Premier David Eby.
Trudeau said Friday he was “as surprised as” Eby about Adastra’s plans. He said that the federal government was “working very quickly” with Adastra Labs “to correct the misunderstanding” caused by the company’s statement on commercialization.
Trudeau said Adastra did not have permission to sell cocaine on the “open market,” while Health Canada said the firm could only sell to other licence holders.
“I was as surprised as the premier of British Columbia was to see that a company was talking about selling cocaine on the open market or commercializing it,” he said, adding that Adastra’s licence was “not a permission to sell it commercially or to provide it on an open market.”
Trudeau said commercializing decriminalized cocaine “is not something that this government is looking at furthering.”
Eby said on Thursday he was “astonished” by Adastra’s plans, and the province had not been notified or consulted by Health Canada on the matter.
The premier said Friday that he has spoken to the federal government, and that he is “further disturbed” to hear from Health Canada that Adastra may have “significantly misrepresented the nature of the licence” in an irresponsible manner.
“I find it more than a little bit frustrating that Health Canada is not apparently in line with us in terms of the direction we’re going,” he said. “We need to work together on the toxic drug crisis and our response to it.”
In a statement, Health Canada says it “thoroughly reviews applications” to ensure licensees follow all existing policies on public health and safety.
“Health Canada has contacted the company to reiterate the very narrow parameters of their licence,” it says regarding Adastra Labs. “If the strict requirements are not being followed, Health Canada will not hesitate to take action, which may include revoking the licence.”
When asked how many other companies have received similar amendments to their licences, Health Canada said it does not share or publish the list of companies who have received licences, nor does it discuss the status of applications for licensing amendments due to safety, security and privacy reasons.
Health Canada spokesman Mark Johnson said it is “not new” to have companies getting licence amendments such as these, and “some companies have had this substance on their licence for 20-plus years.”
B.C.’s drug decriminalization policy went into effect at the end of January, allowing individuals who are 18 and over to possess up to 2.5 grams of opioids, cocaine, methamphetamine and MDMA without criminal penalties.
The decriminalization is a three-year pilot project and a part of the province’s ongoing effort to stem the overdose death rate, with an average of just over six people dying every day in B.C. last year.
For its part, Sunshine Labs said it “does not engage in promoting or launching safer supply initiatives” and defers the implementation of policy on decriminalized cocaine, opium and MDMA to experts.
But the company also said the elevated overdose death rate in B.C. coincides with public health officials’ reports that the majority of deaths came from occasional, rather than chronic, users.
That means decriminalization may not be enough, Sunshine Labs’ statement says, and points to some experts suggesting providing users with “an opportunity to purchase certified drugs with known levels of purity and quantity” as a way to prevent deaths.
“While this notion may be difficult for some to accept, it represents the rational next step,” the statement said.
Safe-supply drug policy advocates, however, said Health Canada’s decision to issue cocaine-related licences to private companies does little to address the actual issues on the streets.
John Braithwaite, supervisor and former board member at the Vancouver Area Network of Drug Users, or VANDU, said the group saw its own plan for safe supply rejected by the province a few months ago.
To see companies receive licences for substances like cocaine, he said, felt like a “slap in the face” because VANDU does not believe for-profit firms have the drug users’ best interest at heart or an understanding of how their products would affect the community.
“Our plan involves the community,” Braithwaite said. “The Downtown Eastside knows what they want and knows what they need to save lives.”
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