MEDICINAL cannabis sales in Australia have fallen sharply for the first time in nearly a decade, with experts from Penington Institute attributing the drop to a regulatory crackdown on high-volume prescribers and clinics.
Penington Institute has released a new report today showing a 28.5% decline in medicinal cannabis sales in the second half of 2025 after years of rapid growth.
Data from the Department of Health, Disability and Ageing showed sales peaked at 3.72 million units in late 2024, plateauing in early 2025, then falling to 2.65 million units by year's end.
Penington Institute CEO, John Ryan, said the shift marks a turning point for the sector.
"This is the first real correction we've seen in Australia's medicinal cannabis market since it began," Ryan said.
"It suggests regulators are starting to get on top of the worst practices, particularly high-volume prescribing driven by profit, not patient care."
While the Therapeutic Goods Administration continues its review of Australia's medicinal cannabis framework, prompted by mounting concerns about patient safety and the rapid rise of telehealth-driven prescribing (PD 11 Aug 2025), Ryan said data suggests increased enforcement is already having an impact.
"We are seeing the effect of targeted enforcement in real time," Ryan said.
"That is the most effective way to deal with bad actors without punishing patients who genuinely benefit from these medicines."
Access the report HERE. KB
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