Canadian licensed cannabis producer Sundial Growers (NASDAQ: SNDL) and Australian importer and manufacturer of medical cannabis Vir Pharma Holdings Pty Ltd. (NASDAQ: VIR) have signed a three-year medical cannabis supply agreement.

Under the deal, Sundial will supply medical cannabis oil for Vir Pharma’s oral formulation for chronic pain that will be used for sales and clinical studies in Australia.

Vir Pharma is building a cannabis-based prescription drug for Therapeutic Goods Administration (TGA) approval called Virabis. The drug is intended to treat chronic pain, providing patients with an alternative to current opioid-based treatments.

As part of the agreement, Sundial will work with Vir Pharma to develop a cannabis oil blend focused on chronic pain that will be marketed under Vir Pharma’s brand name Virabis.

“This is a significant announcement for Sundial and our Heal (medical) business as it will lead to our first global exports and entry into Australian markets,” said Brian Harriman, Chief Operating Officer of Sundial.

Sundial expects to begin the export of cannabis oil before the end of April 2020.