Downturn in medicinal cannabis prescriptions

There has been a sharp fall in medicinal cannabis sales in Australia for the first time in nearly a decade, new data has shown.
 
According to a report released by drug policy research group the Penington Institute, sales dropped by 28.5% in the second half of 2025, in ‘a sudden reversal after years of rapid growth’.
 
Using data from the Federal Department of Health, Disability and Ageing, the Penington report concludes that sales peaked at 3.72 million units in late 2024, held steady in early 2025, then fell to 2.65 million units by year’s end.

The RACGP has long raised concerns about the rapid increase in medicinal cannabis prescriptions, with widespread alarm prompting a regulator crackdown on high-volume prescribers and clinics.
 
The Penington Institute analysis suggests this crackdown is key to the decline.
 
Mid-last year, practitioners who prescribe medicinal cannabis were put on notice by the Australian Health Practitioner Regulation Agency (AHPRA) in response to concerns over patient safety and over-servicing.
 
Clarifying its expectations in firm new guidance, it emphasised that prescribers be as careful and diligent when prescribing medicinal cannabis as they are with other drugs of dependence.
 
It also flagged concerns over patients presenting to emergency departments with medicinal cannabis-induced psychosis as well as ‘evidence of over-servicing and ethical grey areas around single-purpose dispensaries’.
 
Penington Institute Chief Executive Officer, John Ryan, said the shift in prescriptions 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,’ he said.
 
‘It suggests regulators are starting to get on top of the worst practices, particularly high-volume prescribing driven by profit, not patient care.
 
‘We are seeing the effect of targeted enforcement in real time. That is the most effective way to deal with bad actors without punishing patients who genuinely benefit from these medicines.’
 
Last year, the Therapeutic Goods Administration also announced a major review of medicinal cannabis regulation in Australia.
 
That review is yet to be finalised.
 
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