The amount of money Australians are spending on medicinal cannabis continues to skyrocket, with new data showing this year’s sales are on track to double those from 2023.
Not-for-profit drug policy organisation the Penington Institute has found Australians spent an estimated $400 million on medicinal cannabis in the first six months of this year, with flower and oral liquid products the most popular.
Australians spent around half that — $234 million – across the entirety of 2022.
The medicinal cannabis industry has boomed in Australia since it was legalised in 2016 and while scientific research on its effectiveness is still emerging, many patients report improvements for certain conditions.
Clinics and telehealth providers are plentiful, and some people say getting a prescription is easier than buying through a dealer.
But the Penington Institute’s CEO John Ryan said while the money was flowing, patient care was sometimes lacking.
“Some medicinal cannabis clinics are clearly prioritising high-volume access over high-quality medical care,” he said.
‘Don’t call us again’
According to the latest National Drug Household Survey, quoted in the Penington Report, 700,000 Australians used cannabis for medical purposes between 2022 and 2023, with more than 200,000 always or sometimes accessing it via a prescription.
Most medicinal cannabis products are not registered medicines in Australia and a doctor must apply for access through the Therapeutic Goods Administration (TGA) on behalf of a patient.
Doctors can either be authorised to prescribe to multiple people or individuals under two different TGA approval schemes; the Special Access Scheme and the Authorised Prescriber Scheme, the latter of which does not collect any patient data.
The Special Access data shows most approvals for the first half of this year were for men (around 59 per cent) seeking treatment for chronic pain and anxiety.
Data shows medicinal cannabis sales dramatically increased between 2022 and 2024 and most doctors have been using the authorised prescriber (AP) pathway. (Supplied: The Penington Institute)
Lyndsay Daltoe has been prescribed medicinal cannabis for two years to treat insomnia and anxiety, and found it also improved his attention span.
The 40-year-old environmental scientist used to buy cannabis on the street but found it was cheaper and better quality when accessed through medicinal dispensers.
“Plus I’ve never felt comfortable in drug deal situations where you’re dealing with shady people and putting money in the wrong hands,” he said.
Lyndsay Daltoe has found relief using medical cannabis. (Supplied: Lyndsay Daltoe)
But Mr Daltoe’s experiences at some clinics have been marred by what he sees as conflicts of interest, where doctors get kickbacks for pushing certain brands.
“It’s all about the partnerships they may have and not about listening to what’s working for you.”
He’s had difficulty filling his scripts at his chosen pharmacy as some prescribers will dictate which pharmacy you can go to.
“They will only give your paperwork to one pharmacy in their network so it all stays in house, at least that’s how it seems.
“After telling one clinic I wanted my script sent to my local pharmacy they actually just said ‘we don’t want you as a patient, don’t call us again’.”
Penington CEO Mr Ryan said the current system often removed patient choice and incentivised prescribers to favoUr some products and pharmacies over others.
John Ryan says Australia’s cannabis policies are out of date. (ABC NEWS: Andrew Altree-Williams)
“Patients are often vulnerable and will agree but that’s not really optimum care,” he said.
“These sort of conflicts are unacceptable.”
In July, the national health regulation watchdog (AHPRA) pledged a crackdown on unethical prescribing practices.
They recently discovered one Australian doctor had prescribed products with high potency THC — the ingredient which gives users a “high” — to 12,000 patients in a six-month period.
The science
Despite demand for medicinal cannabis showing no signs of slowing, the scientific evidence for some conditions is reasonably modest.
Jonathon Arnold, from the Lambert Initiative for Cannabinoid Therapeutics, said so far there was good evidence cannabis (containing tetrahydrocannabinol or THC) could reduce spasticity associated with multiple sclerosis and relieve chemotherapy-induced nausea and vomiting. Also, he said, cannabidiol (known as CBD), which isn’t intoxicating, could reduce seizures in certain childhood epilepsies
Jonathon Arnold says there is evidence medicinal cannabis works for some conditions. (Supplied: The University of Sydney)
Professor Arnold said there was also some evidence CBD and THC could be useful for chronic and neuropathic pain, but more clinical trials were needed.
There is currently insufficient evidence cannabis helps with anxiety and other mental disorders, Professor Arnold said, and THC could also be associated with psychosis and schizophrenia in some people with a genetic vulnerability.
Professor Arnold said doctors often didn’t know what doses to administer for different conditions and he urged medicinal cannabis companies to invest in more research.
“The advantage for them is it will make medicinal cannabis a lot more scientifically sound, which will then alleviate concerns some physicians have around prescribing.”
Changing perceptions
Public attitudes towards recreational use of cannabis have also been shifting.
In the 2022-2023 National Drug Strategy Household survey, over 80 per cent of respondents said the possession of cannabis for personal use should not be a criminal offence — the highest rate since the introduction of the question in 2010.
Australians have slowly become more approving of cannabis. (Supplied: The Penington Institute)
Penington CEO Mr Ryan said the time was right for Australia to move toward a regulated model, similar to Canada’s, where over 18s can buy plain-packaged cannabis products and the government collects tax revenue.
“Our model is very antiquated … we’re spending a fortune on law enforcement, about $2.1 billion per year, and it’s [detecting] about 2.6 per cent of the product out there, so 97 per cent of cannabis is still free of law enforcement.”
The Australian Capital Territory is the only jurisdiction where limited cannabis decriminalisation has been implemented. In 2020 it became legal to possess up to 50 grams of cannabis per person and grow and consume cannabis in your own home.
Australians are spending much more than ever on medicinal cannabis. (ABC NEWS: Ebony Tenbroeke)
This year saw other jurisdictions including Victoria, Western Australia and New South Wales, consider reforms with mixed results.
At a federal level, a Senate inquiry was held into a proposed Greens’ bill to legalise cannabis but the standing committee recommended it not pass due to potential strain on the health system and the vulnerability of young people.
Lyndsay Daltoe said any move towards decriminalisation would be beneficial but acknowledged many still found cannabis a taboo topic.
“The problem is there’s still some old stigmas that persist, but I think I’m a perfect example that taking cannabis does not make you that stereotypical Beavis and Butt-head stoner.”
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