Canopy Growth Shifts DOJA Site to Medical-Only Production in Canada

SMITHS FALLS, ON – Canopy Growth Corporation has repurposed its DOJA cultivation facility in Kelowna, British Columbia, to focus solely on medical Cannabis. The change positions the site as a dedicated supplier for its Spectrum Therapeutics brand, targeting patients including military veterans.

Under a new micro-cultivation license, the upgraded facility will grow limited runs of British Columbia-sourced flower strains branded DOJA, available only through Spectrum’s patient network. This setup aims to ensure steady quality and aid in developing new medical products.

Luc Mongeau, the company’s CEO, described the step as part of broader efforts to reshape operations. “Canada’s medical market continues to be a standout business for us,” Mongeau said in a statement. “Dedicating DOJA to this portfolio underscores our long-term commitment to medical Cannabis and our focus on building a stronger, more sustainable business in Canada.”

Andrew Bevan, SVP, Global Medical, highlighted the potential for growth. “DOJA represents a distinct commercial opportunity for Canopy Growth’s Canadian medical business,” Bevan said. “With a focus on craft cultivation and exclusive supply for Spectrum patients, DOJA enhances our portfolio and reinforces Spectrum’s leadership in Canada’s medical market.”

The decision reflects Canopy’s push to concentrate on segments with reliable demand and better returns. In Canada, medical sales accounted for about 20% of the company’s domestic revenue last fiscal year, but they grew for the fifth straight quarter, bucking declines in recreational channels. Overall, the medical channel offers margins roughly 10 to 15 percentage points above recreational, based on industry benchmarks, because it relies on repeat prescriptions rather than one-off buys. For Canadian veterans, who make up a key group, Spectrum provides tailored access, filling a gap in standard retail.

This move fits into Canopy’s wider overhaul since early 2025, when Mongeau took the helm. The firm has shed underperforming assets, cut costs by more than 30% in some areas, and leaned into its U.S. foothold through Canopy USA, which holds stakes in operators like Acreage Holdings.

Yet challenges persist. Canopy reported a net loss of C$1.1 billion for fiscal 2024, driven by impairments and restructuring charges, even as revenue held at C$307 million. Shares of Canopy, traded as WEED on the Toronto Stock Exchange and CGC on Nasdaq, have fallen about 25% year to date, trading around C$10 as of midday Tuesday.

Analysts point out that while medical Cannabis provides stability, the recreational market, still over 80% of total sales, remains volatile with price wars and oversupply. Canopy’s bet on craft-style production at DOJA could differentiate its medical offerings, but success depends on patient uptake and regulatory nods for new strains. If executed well, it might lift medical revenue by 15% to 20% over the next two years, though broader U.S. reform remains the bigger wildcard for the stock.

For patients, the shift means more options. Spectrum’s site lists DOJA strains for those enrolled, emphasizing controlled dosing for conditions like chronic pain and PTSD. As Canopy trims its footprint [now down to five core cultivation sites from over a dozen] this targeted approach signals a pragmatic turn toward niches where trust and consistency drive loyalty.

Wrapping up, Canopy’s DOJA* pivot underscores a core truth in Cannabis: survival favors those who master the steady streams over the flashy floods. With medical demand holding firm while recreational waters churn, this could steady the company’s footing in its home market, even if Wall Street’s gaze stays fixed on American horizons.

*Highly Capitalized Network-HCN reports impartially on developments in the industry and its participants & does not endorse, promote, or take positions on any party, association, or company involved.