Germany is becoming a hotbed for Canadian cannabis producers and we think this trend is just getting started.
Germany, the largest country in the European Union started 2017 by legalizing medical cannabis creating a major opportunity for cannabis businesses across the world. The legislation also will make cannabis available to people suffering from serious illnesses and available through health insurance plans.
These factors have led to a surge in the number of licensed Canadian medical cannabis producers focused on this market and we want to highlight some of the recent deals.
Aurora Makes Major Acquisition
On Friday, Aurora Cannabis (ACB.V) (ACBFF) announced a major development and significantly increased its market share in Germany with the acquisition of Pedanios GmbH.
Since December 2015, the company has been importing, exporting, and distributing medical cannabis into and within the European Union (EU). Pedanios holds all relevant licenses and permits and is a federally licensed medical and narcotic wholesale and GMP inspected narcotic import business.
In March 2017, when Germany’s new law came into effect Pedanios’ monthly sales immediately doubled and growth continues to accelerate. Pedanios wholesales medical cannabis to more than 750 pharmacies and offers the largest product line and largest variety of products when compared to other German distributors.
Canopy Growth Acquires German Firm in Late 2016
In late 2016, Canopy Growth Corp (TWMJF) (CGC.TO) reported an agreement to acquire MedCann GmbH Pharma and Nutraceuticals, a German-based pharmaceutical distributor that has placed Tweed-branded cannabis strains in German pharmacies.
MedCann is federally licensed by the German Health Ministry to import, manufacture and distribute medical cannabis products. The company will help Canopy capitalize on and navigate Germany’s complex regulatory environment for importing and distributing cannabis
A Market to Keep a Close Eye On
Germany has now been writing formal prescriptions for medical cannabis since the first week of March and there are no signs of slowing down.
With Germany being the largest country (by population) in the European Union, we are keeping a close eye on how this market develops as it can drive future value for Canadian licensed medical cannabis producers.
Source: 420Intel – Medical Cannabis