EXPOSÉ: DEA's Marijuana Licensing Scheme Exposed - MMJ BioPharma's Case Reveals DEA Contradiction Blocking FDA Approved Cannabis Medicine

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Newly uncovered DEA agreements confirm what MMJ BioPharma Cultivation has argued for years - that the agency's own rules make it impossible for any company to legally produce pharmaceutical grade cannabis for FDA authorized clinical research.

WASHINGTON, D.C. / ACCESS Newswire / October 26, 2025 / A recently disclosed memorandum of understanding between the DEA and a registered marijuana cultivator has revealed the DEA fatal flaw at the heart of America's cannabis research policy - one that proves MMJ BioPharma Cultivation's case and exposes why legitimate science has been paralyzed for nearly a decade.

The Bureaucratic Catch-22

Under the terms of the DEA's own memorandum, licensees are required to perform highly restricted tasks: apply for quotas, send samples to DEA approved labs, provide advance harvest notices, follow DEA mandated packaging and storage procedures, and ultimately invoice the DEA for the very cannabis they grow.

At the same time, the DEA mandates that applicants - including MMJ BioPharma Cultivation - must first present a "bona fide supply agreement" with an authorized buyer before the agency will issue a bulk manufacturing registration.

The problem?

Federal law prohibits any company from signing such an agreement until after it receives that registration. In other words, the DEA is demanding proof of activity that would itself be illegal without the license - an impossible circular condition that keeps legitimate researchers permanently stuck in limbo.

"The DEA's own paperwork confirms exactly what we've told Congress and the courts," said Duane Boise, President & CEO of MMJ International Holdings.

"You cannot have a bona fide supply agreement without a manufacturing registration. Forcing that condition first isn't just bureaucratic error - it's regulatory entrapment that blocks lawful science."

A System Designed to Fail

MMJ BioPharma Cultivation has spent over seven years seeking DEA authorization to produce pharmaceutical-grade cannabis for its FDA-approved clinical trials in Huntington's disease and multiple sclerosis. Despite passing multiple inspections and earning two Orphan Drug Designations, the company remains stalled while less-qualified entities either sit dormant or operate under restrictive DEA MOUs that prohibit normal commerce.

The DEA's structure - inherited from the discredited University of Mississippi monopoly - keeps federal control over every gram of cannabis produced, turning manufacturers into government subcontractors rather than true pharmaceutical suppliers. This model violates both Congress's intent under the Controlled Substances Act and the FDA's scientific authority over drug manufacturing and safety.

Constitutional Implications

The Department of Justice's recent concession that DEA administrative law judges were unconstitutionally insulated from removal only strengthens MMJ's argument: the agency's in-house licensing system operates outside constitutional bounds and denies applicants basic due-process rights.

"The DEA has been playing regulator, prosecutor, and market participant all at once," Boise added. "That's not regulation - it's obstruction in uniform. And every day of delay means another day patients go without medicine the FDA has already cleared for human trials."

A Call for Congressional and Administrative Reform

MMJ BioPharma Cultivation is urging President Trump and DEA Administrator Terry Cole to end this paradox by issuing bulk manufacturing registrations before requiring supply agreements, aligning DEA procedure with federal law and FDA science.

Without that correction, no U.S. company can legally or commercially produce pharmaceutical grade cannabis - ensuring that innovation, jobs, and patient access will continue to migrate overseas.

About MMJ BioPharma Cultivation

MMJ BioPharma Cultivation Inc., a subsidiary of MMJ International Holdings Inc., develops pharmaceutical grade cannabis medicines for FDA-approved clinical trials targeting Huntington's disease and Multiple Sclerosis. Its parent company and affiliates, MMJ BioPharma Labs, operate within FDA and GMP compliance standards to pioneer the next generation of cannabinoid based therapeutics.

MMJ is represented by attorney Megan Sheehan.

CONTACT:

Madison Hisey

[email protected]

203-231-8583

SOURCE: MMJ BioPharma Cultivation

View the original press release on ACCESS Newswire
 

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