The second most populated country in Europe, Germany, legalized recently marijuana. What does this mean?
Even though Germany’s cannabis legalization is partial, it significantly impacts the country’s medical marijuana program by enabling personal possession, consumption and establishment of non-profit cannabis social clubs. To learn more about what this historic move means for the industry in Europe, Biedex Markets reached out to several industry experts.
We spoke with Dr. Constantin von der Groeben, a managing director of Demecan – the only German vertically integrated medicinal cannabis company; Denise Faltischek, a chief strategy officer and Head of International at Tilray Brands TLRY TLRY and Jürgen Bickel, co-founder and managing director of Canopy Growth’s CGC Germany-based vaporization company Storz & Bickel.
Huge Benefits For Medical Marijuana Patients
Faltischek told Biedex Markets that “of particular importance to Tilray is the adoption of the new Medical Cannabis Act, MedCanG, which provides de-scheduling of cannabis as a narcotic, which we expect will significantly expand the medical cannabis market in Germany allowing for wider insurance coverage as well as enhanced accessibility to high-quality cannabis for medical patient.”
Tilray Brand’s medical division, Tilray Medical is one of the biggest suppliers of medical cannabis brands to patients, physicians, hospitals, pharmacies, researchers, and governments, in over 20 countries and across five continents. It grew from being one of the first companies to become an approved licensed producer of medical cannabis in Canada to building the first GMP-certified cannabis production facilities in Europe, first in Portugal and later in Germany. Recently, senior analyst Pablo Zuanic of Zuanic & Associates called Tilray one of the better-positioned companies to benefit from the country’s new cannabis policy.
Faltischek said the company looks forward to exploring the path opened by the German government, promoting improved access to medical marijuana and optimizing care for its patients.
Bickel called the legalization long overdue but a step in the right direction. “Although we all hoped for a more extensive legalization including cannabis dispensaries, I am satisfied with the outcomes. What matters most is that cannabis is not considered a narcotic anymore and consumers are provided with a safe and legal environment for cannabis consumption without fear of legal prosecution.”
He added that even though the first phase “does not entail the establishment of an industry per se, it is anticipated that numerous social clubs will emerge, fostering market development in this direction.”
He added that legalization destigmatizes cannabis. “Experience from other markets suggests that legalization doesn’t immediately lead to a surge in cannabis consumption. Nonetheless, I believe the more liberal stance on cannabis will foster open dialogue and facilitate education on harm reduction, which includes more healthy consumption methods, like vaporization.”
Opportunities For Innovation, Research And Development
Bickel says to look for an uptick in demand for medical marijuana, especially in the period preceding the establishment of official and fully legal cannabis sources, creating a promising window opportunity for both domestic and international medical marijuana enterprises.
Demecan’s Von der Groeben noted that in addition to recognizing the medical and economic benefits of cannabis, the reform ushers in opportunities for innovation, research and development.
“The recent legislative reforms in Germany mark a transformative chapter not only for Demecan but for the entire medical cannabis sector within the country. A crucial aspect of these reforms is the reclassification of cannabis from a narcotic to a prescription (Rx) drug,” he said, predicting that the market will show substantial growth in the first few years.
See Also: This European Country Is Expected To Have Millions Of Medical Marijuana Patients, Say Experts
For Demecan, the new policy reform is important as it allows it to fully utilize its production capabilities, enables it to directly interface with pharmacies, choose and cultivate strains based on market demand and medical efficacy, and independently negotiate price, explained von Der Groeben.
“Freed from the constraints of government off-take agreements only, we can now directly respond to the needs of the market and our patients. This streamlined supply chain is crucial for improving patient outcomes and satisfaction.”
To read more about why industry experts are saying that Germany’s reform will have a domino effect in Europe, the opportunities the new policy holds for Carma HoldCo., which is the global licensing company behind the nation’s fastest-growing celebrity cannabis and lifestyle brands that works with such icons like Mike Tyson, Ric Flair, Future and Hulk Hogan, proceed to the second part of the story HERE.
Photo: Biedex Markets edit with images by Africa Studio via Shutterstock and Mateo Krossler on Unsplash
