Neptune Wellness Solutions is up over 30%

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Neptune is a rising star among cannabis stocks but is still awaiting approval from Health Canada

One cannabis stock that has been mostly overlooked is quietly having a really good year. Neptune Technologies & Bioresources, formerly known as Neptune Wellness Solutions Inc (TSE: NEPT), is up around 32 percent so far this year. It is currently transitioning from a nutraceutical company to marijuana extracts.

Much like other marijuana companies operating in Canada, Neptune is reaping the benefits of recreational legalization. Its success is largely attributed to its strategic partnerships. Since partnering with Tetra Bio Pharma in February, Neptune has been part of a project to develop premium products for inflammation.

The partnership allows Neptune to excel in its area of expertise – cannabis extraction – while benefiting from Tetra’s experience in clinical trials and drug development.

Neptune also partnered with a top player in the sector, Canopy Growth, in June. Unlike its development deal with Tetra, Neptune is contracted by Canopy Growth to provide extraction services. The deal includes a minimum that Canopy is required to order each year but Neptune expects to see a much higher volume.

The partnerships have helped fuel Neptune’s own ambitions for growth. The company is expanding its capacity from 30 metric tons to 200 metric tons of cannabis processing. It is also adding new purification and isolation capabilities to its services.

For the moment, Neptune is stalled. Though the company is ready to begin producing it is still waiting on a processing license from Health Canada. Neptune has already completed the final step in the process and Jim Hamilton, the company CEO, is anticipating a swift approval.