On 10 March 2021, Quintis signed a memorandum of understanding with one of China's largest manufacturers of Traditional Medicines, Lanzhou Foci Pharmaceuticals. As the world's largest Indian sandalwood grower and producer, Quintis will supply raw Indian sandalwood products from Australia into the Chinese market.
The agreement is considered the first of its kind for the Traditional Chinese Medicine (TCM) sector, an industry which accounts for more than a third of all pharmaceutical sales in China. The TCM industry has seen significant growth during the coronavirus pandemic and despite other industries facing challenges, this is a milestone agreement for the industry.
"The traditional Chinese medicine market is getting a lot of support politically in China — it's seen as a very important part of the healthcare system," said Richard Henfrey, Quintis' Chief Executive Officer. "I believe there's also a strong opportunity for sandalwood as an active ingredient in over-the-counter pharmaceuticals and therapeutic skincare products, as well cosmetics. The latter are industries where sandalwood doesn't have a position in the market, but we think the opportunity in those three industries is enough to soak up the growth that's going to come in supply."
The deal with Lanzhou Foci Pharmaceuticals comes off the back of Quintis' biggest ever commercial harvest in 2020, which saw more than 100 hectares go through their processing shed in Kununurra.
Since the company's first harvest in 2013, more than 500 hectares of Indian sandalwood has been harvested and that number is set to grow significantly as the company looks towards expanding its harvest operations in the coming years.