A long-delayed effort to grow federally legal cannabis for medical research was abruptly derailed this week when a Drug Enforcement Administration (DEA) judge terminated a key hearing without allowing any testimony or cross-examination.
The company behind the application, MMJ BioPharma Cultivation, is now preparing to challenge the ruling in federal court and call for the judge’s recusal.
The ruling was issued by DEA Chief Administrative Law Judge John Mulrooney II, who dismissed the company’s bid for a marijuana bulk manufacturing license after more than six years of delays. MMJ BioPharma said the decision came without warning and without any opportunity to present evidence or respond to agency claims—calling it a “procedural ambush.”
“This isn’t regulation—it’s an illegal ambush,” said MMJ CEO Duane Boise, who said the company had complied with all requirements under the Controlled Substances Act and FDA pathways.
MMJ, which is developing cannabis-based medicines for Huntington’s disease and multiple sclerosis, submitted a legally binding supply agreement in March 2024 with a DEA-licensed Schedule I facility. The agreement included specific sourcing protocols, defined volume, and DEA Form 222 compliance. Despite that, Mulrooney’s June 16 ruling ignored the document entirely and blocked it from being entered into the record.
Boise accused the DEA of demanding the agreement and then refusing to acknowledge it once submitted. “The agency cannot demand a document, receive it, then declare it irrelevant behind closed doors,” he said.
The order also reversed a previous determination by another administrative judge that certain disputed facts warranted a hearing. Instead, Mulrooney cited internal communications from a DEA investigator that MMJ was never allowed to challenge or respond to—raising concerns of ex parte communications and due process violations.
MMJ says the decision conflicts with Supreme Court precedent in Axon Enterprise, Inc. v. FTC, which limits the ability of agencies to conduct internal adjudications when constitutional claims are at stake.
Boise called the process a “kangaroo court” and said it reflects a broader pattern of obstruction within the DEA against cannabis research and reform.
MMJ is now preparing to file a motion to vacate the ruling, reopen the record, and seek the judge’s recusal. The company also plans to initiate a new lawsuit in federal court.
MMJ BioPharma holds orphan drug designation from the FDA and says it remains committed to producing pharmaceutical-grade cannabis for federally sanctioned clinical trials. The company is represented by attorney Megan Sheehan.
