The first medical cannabis dispensary in New Jersey opened its doors this morning, representing a major milestone for the state’s oft-delayed MMJ program and establishing an official market for legal cannabis.

Ten states now have dispensaries, and several more – including Connecticut, Massachusetts, Rhode Island and Vermont as well as the District of Columbia – are working to join the club.

Greenleaf Compassion Center in Montclair, NJ, expects to handle about 20 patients today who previously made appointments. It’s not accepting walk-in business at this time and will only provide up to a half-ounce of marijuana to each patient per month – rather than the two ounces allowed under law – to ensure demand doesn’t outstrip supply. It was a costly endeavor: Board members running the dispensary reportedly have already spent $450,000 to get the operation up and running, according to The Star-Ledger.

The move comes nearly three years after New Jersey passed its medical marijuana law. During much of that time, officials wrangled over the best way to regulate the emerging industry, delaying the permitting and approval process for dispensaries.

Now that a center has actually launched, the remaining five allowed under the law could have an easier time winning state and local approvals and opening their doors (though they are all in different stages of the process).

The market isn’t too big at this point, however, and that could deter some planned dispensaries from opening up in the immediate future. Just 338 patients have MMJ cards, and the state is currently processing 60 applications. At the current levels, each of the six nonprofit dispensaries would have an average of 56 patients, which would be difficult to build a viable operation around.

The number of registered patients is significantly lower than in other MMJ states, including those just starting their medical cannabis programs. Arizona, which welcomed its first dispensary this week as well, already has roughly 34,000 patients .

It’s safe to say that New Jersey will remain one of – if not the – smallest medical marijuana market for the foreseeable future for one main reason: The state’s MMJ program is much stricter than others. In many other states, patients with severe or chronic pain can qualify for medical cannabis cards. In New Jersey, however, the list of qualifying conditions is more limited , including only severe ailments such as multiple sclerosis, terminal cancer, muscular dystrophy and inflammatory bowel disease.

The market is important nonetheless to the industry as a whole, and there are still plenty of opportunities for related businesses. The state could also add new qualifying medical conditions – and boost the number of allowable dispensaries – over time.

http://mmjbusinessdaily.com/2012/12/06/the-wa...j-program/