Canada’s licensed pot producers face uncertainty after court says patients can grow their own

Canada’s nascent medical marijuana industry is being thrown into new turmoil by a court ruling that threatens to undercut its business model.

Leading pot producers such as Canopy Growth Corp., Aphria Inc., Aurora Cannabis Inc. and Mettrum Health Corp. came into being for one specific reason: The federal government introduced rules in 2014 that required patients to buy marijuana from licensed producers. Prior to that, patients were getting licences to grow at home, making it difficult for Ottawa to regulate the sector.

The decision Wednesday from federal court judge Michael Phelan could bring elements of the old system back. He gave patients the right to grow their own cannabis, arguing the current system restricts access to the drug.

It is another potential game-changer for this industry, which always seems to be in some stage of transition. Currently, the licensed pot producers are fighting competition from illegal dispensaries and trying to...

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