LSU finalizes medical marijuana agreement with GB Sciences
Despite questions raised about the company’s financial health, the LSU AgCenter has finalized its contract for GB Sciences Louisiana to produce medical cannabis products for the university.
The company—a subsidiary of the Las Vegas-based biopharmaceutical firm GB Sciences Inc.—has already filed patent applications for cannabis that can be used to treat chronic pain, heart therapies and conditions like chronic arthritis, Crohn’s disease, inflammatory bowel disease and asthma.
GB Sciences also will immediately begin renovating a cannabis production facility and anticipates the product will be available to qualifying patients next summer, according to a news release issued this morning. The location of the facility, which LSU says is off campus and will not employ students, is not being disclosed.
Under the terms of the agreement, the LSU AgCenter will receive $3.4 million or 10% of gross revenue—whichever is greater—over five years. GB Sciences also will support the LSU AgCenter research through funding of personnel, laboratory space and equipment.
GB Sciences was one of seven companies that applied to be the sole operator of the LSU AgCenter’s medical marijuana program. The agriculture centers at LSU and Southern University are the only two entities legally allowed to grow and conduct research with medical cannabis in Louisiana, per state law. But earlier this month, CB Medical LLC of Louisiana—which lost its bid on the contract—raised concerns about the GB Sciences financials, citing red flags that appeared in the company’s disclosures.
GB Sciences were chosen through a rigorous selection process, the AgCenter says, adding LSU officials have visited the company’s Nevada production facility.
“GB Sciences has a first-class production and research facility,” Bill Richardson, LSU vice president for agriculture, says. “Their model and meticulous attention to detail will be beneficial to the Louisiana program.”
Medical cannabis is limited in Louisiana to oils, topical applications, transdermal patches, suppositories and oral methods like pills, sprays or chewables. State law prohibits the smoking of medical cannabis.