Three corporations have been chosen to domesticate medical marijuana in Germany – the results of a long-delayed software course of to offer product for one of many largest medical cannabis markets on the planet.
Canada’s Aphria acquired 5 of the 13 tons that have been up for grabs, in accordance with Hendrik Knopp, managing director of Aphria Deutschland.
The outcome “is a very important footstep toward our twofold strategy of establishing a high-quality, in-country cultivation in Germany and importing additional flowers and oil from Canada and Denmark to provide the German market with complete cannabis medicine offering,” Knopp advised Marijuana Business Daily.
German newspaper Handelsblatt reported that a subsidiary of Canada-based Aurora Cannabis and Demecan of Germany have been selected for 5 and three of the tons, respectively. Representatives from Aurora and Demecan didn’t instantly reply to queries from Marijuana Business Daily.
An official announcement of the much-anticipated winners of contracts to domesticate medical cannabis in Germany for a interval of 4 years is predicted quickly from the Federal Institute for Drugs and Medical Devices (BfArM).
The three corporations have been selected as winners of the second software course of try by the German authorities for home cultivation, based mostly on a factors system targeted on infrastructure, high quality normal, safety plans and worth.
A earlier effort needed to be halted.
Berlin-based Demecan is a three way partnership companion of Wayland Group in Germany, in accordance with Graham Farrell, vice chairman of communications for Wayland Group, however he declined to touch upon the outcomes of the appliance course of.
Trading of Wayland’s inventory (CSE: WAYL) on the Canadian Securities Exchange was halted on the request of the corporate pending information.
Last yr, Demecan acquired a renewal for an choice to purchase a bit of land 95 kilometers (59 miles) north of Berlin, although the proposed use for the land was not disclosed.
The firm additionally shares CEOs with one other German firm, Deutsche Medizinalcannabis GmbH, which on the finish of final yr signed a provide settlement with Canadian firm Invictus.
A 10-day “standstill period” will now happen earlier than the contracts are formally signed, permitting unsuccessful bidders to problem the choice.
Alexander Hinz, founding associate at Pivot Regulatory, a German political technique consultancy lively in medical cannabis, informed MJBizDaily that “the standstill interval isn’t distinctive to the BfArM’s medical cannabis tender however is obligatory beneath the European Union’s public procurement guidelines and originates from the European Court of Justice’s Alcatel case (C-81/98).”
“It gives bidders an opportunity to challenge a contract award before the final contracts have been entered into and shields the BfArM from a potential declaration of ineffectiveness,” he added.
After signing the contracts, corporations could have a most of 18 months to ship the primary harvest. The first yr of the contracted four-year interval will start with that first harvest.
Imports into Germany will proceed to be attainable after domestically produced cannabis turns into obtainable.
Pharmacies bought an estimated 2,845 kilograms (6,272 kilos) of MMJ flower in Germany in 2018, greater than double the 1,200 kilograms bought in 2017, in accordance with Medical Cannabis in Europe: The Markets & Opportunities, a brand new report from MJBizDaily.
More than half the availability was imported from the Netherlands, with the remaining coming from Canada.
Combined manufacturing of the winners can be 2,600 kilograms per yr, for a complete of 10,400 kilograms over the four-year interval.
The contracts embrace a clause that permits the events to extend their provide by 10% per yr down the road. Even with 10% will increase, it’s unlikely that domestically produced marijuana shall be sufficient to satisfy demand within the nation.
Cannabis to be produced in Germany, like imported marijuana, should abide by the Good Agricultural and Collection Practices (GACP) and Good Manufacturing Practice (GMP) high quality requirements.
Aurora, based mostly in Edmonton, Alberta, has been exporting medical cannabis to Germany from its EU-GMP licensed amenities in Canada.
Aphria’s essential cultivation middle in Canada shouldn’t be EU-GMP licensed, and the Leamington, Ontario, firm up to now has been unable to promote its personal medical cannabis in Germany.
Not all German sufferers have insurance coverage that covers medical cannabis, and for lots of those that don’t, present retail costs of about 20 euros ($22.43) per gram are prohibitive.
“The availability of more affordable, domestically grown medical cannabis is likely to have a positive impact on patient care in Germany,” Pivot’s Hinz stated, particularly amongst those that “don’t receive reimbursement and bear the costs of their treatment themselves.”
Once home cultivation turns into operational, provide points and excessive costs may develop into a smaller drawback for the German medical cannabis program.
Roughly a dozen European and non-European nations are gearing as much as export to Germany. If profitable, costs possible can be pushed down even additional.
Aurora has provided lower-than-usual costs to win contracts in Europe:
- In Italy, Aurora gained an software course of in early 2018 to provide a complete of 100 kilograms for 320,900 euros (three.2 euros per gram). Most of the medical cannabis bought in Italy, as in Germany, was imported from the Netherlands final yr.
- At the top of 2018, Aurora turned the primary – and, to date, solely – firm to export to Luxembourg, providing 20 kilograms for 50,000 euros (2.5 euros per gram).
Alfredo Pascual may be reached at [email protected]