Ease Labs Leads Million-Dollar Dispute for Supply of Cannabis-Based Medications to São Paulo's SUS

The company Ease Labs has secured the top position in the proposal phase of the electronic auction aimed at supplying cannabis-based medications to the Unified Health System (SUS) of São Paulo. This is the largest bidding in Brazil for cannabis-based products intended for public health. According to the terms of the announcement, the winning company must supply a significant quantity of 1.87 billion units of cannabis derivatives, totaling approximately R$ 80.5 million over 12 months.

The founder and CEO of Ease Labs, Gustavo Palhares, stated that the company's competitive proposal helped to offer the lowest price: R$ 0.045 cents per milliliter (ml).

Data from Kaya Mind shows the existence of 430,000 medicinal cannabis patients in Brazil; however, access to products is still limited via SUS. In Palhares' view, the free distribution of cannabis-based products would represent a crucial advancement for public health, as a significant portion of the population cannot afford to purchase the products directly from pharmacies due to high costs.

“We have always been concerned with the entire production chain, aiming for operational efficiency and cost to ensure a quality product and thus guarantee real access to cannabis-based treatment,” he said.

Ease Labs, specialized in developing natural solutions and unconventional alternatives for health, focuses on finished cannabis products and botanical inputs derived from Brazilian biodiversity.

The progress of the bidding

This Wednesday (20), we reported that TegraPharma was in dispute, but the company was disqualified from the electronic auction, as confirmed by the São Paulo State Health Department. Another disqualified company was Golden CBD. One of the requirements to participate in the announcement is to have products registered under the RDC 327 standard of the National Health Surveillance Agency (ANVISA).

The Pharmaceutical Assistance Coordination (CAF) issued a statement informing that the documents and proposals from suppliers are currently being evaluated in an ongoing public session. The winner will be officially confirmed after the completion of all bidding procedures.

The speed of the process to define the winning company will depend on the possible presentation of appeals by other companies. If appeals occur, they will be analyzed before a final decision is presented. If there are no further appeals or disqualifications, the winning company of the auction may be announced still in 2023, marking an important milestone in access to cannabis-based treatments within the SUS in São Paulo.

The bidding was opened by the São Paulo Government to comply with the law on access to medicinal cannabis authored by state deputy Caio França – PSB. However, the law is still in the regulatory phase.

Main professional and scientific fair in Latin America on the medicinal use of Cannabis

May 23, 24, and 25, 2024 at Expo Center Norte/SP

Medical Cannabis Fair (MCF) – It is the largest and main scientific-professional and B2B fair in Brazil and Latin America on the medicinal and industrial use of cannabis. The MCF is aimed at health professionals, public agents, investors, and entrepreneurs. The fair takes place concurrently with the Brazilian Congress on Medicinal Cannabis in São Paulo.