The New York Medical Cannabis Industry Association, acting on behalf of four of the five original medical marijuana companies, sued the state in April to try to stop it from issuing new licenses.
Citiva Medical and Valley Agriceuticals will manufacture in Orange County.
A second medical marijuana dispensary may soon open in Monroe County.
The five existing companies that were licensed when the program began in 2016 filed a lawsuit earlier this year seeking to preemptively block the state from registering the five new companies.
"The New York State Department of Health is committed to growing the state's Medical Marijuana Program responsibly", said New York State Department of Health Commissioner Dr. Howard Zucker.
The New York State Department of Health today announced that it has authorized five additional registered organizations (ROs) to manufacture and dispense medical marijuana in New York State, an initiative aimed at improving patient access and the geographic distribution of dispensing facilities across the state. The agency announced the new licenses Tuesday. He said the company intends to be "fully operational" some time during the first three months of next year.
The company now plans to open dispensaries in Erie, Orange, Queens and Suffolk counties, according to the state.
PalliaTech previously proposed a manufacturing operation near Plattsburgh and dispensaries in Newburgh, Brooklyn, Rochester and Utica.
Valley Agriceuticals will manufacture in Orange County and have dispensing facilities in Kings, Oneida, Suffolk, and Dutchess Counties.
The two now serve an active registry of more than 6,000 patients with conditions such as glaucoma, cancer and intractable pain - and are expected to see more patients starting August 1, when post-traumatic stress disorder is added as a qualifying condition for Minnesota's program.
The number of certified patients has increased by 10,744, or 72%, since the Health Department added chronic pain in March to the list of ailments covered by the medical marijuana law.
New York Gov. Andrew Cuomo signed a law in July 2014 allowing patients with cancer, AIDS, Parkinson's disease and certain other medical conditions to obtain nonsmokeable versions of marijuana that can be ingested or vaporized.