Under the new cannabis law, the only independent German company permitted to cultivate medical cannabis in the country so far is Demecan, which obtained the right to grow unlimited amounts. Demecan can increase its production capacity by an annual yield of two tons and fully utilize its production facilities in Ebersbach, writes DieSachsen.De.
Partial cannabis legalization took effect in Germany on April 1, allowing adults over 18 to possess up to 25 grams of dried cannabis and cultivate up to three plants at home.
Canadian marijuana giant, Tilray Brands TLRY also confirmed last week that its German cannabis cultivation facility, Aphria RX GmbH, has obtained the first new cannabis cultivation license issued in Germany. Another publicly traded Canadian company, Aurora Cannabis ACB, is the third to obtain the same license.
In 2019, these three companies won a tender from the Federal Institute for Drugs and Medical Devices (BfArM), under which they were allowed to cultivate a limited amount of medical cannabis. Furthermore, the cannabis grown in Germany could only be sold to pharmacies via the state cannabis agency. Now, this intermediate step is no longer necessary.
“This license is a huge step forward for DEMECAN and the entire industry,” stated Dr. Adrian Fischer, physician and managing director responsible for cultivation at Demecan. “We are proud to be the first German company to take this step and look forward to providing our high-quality cannabis strains soon. Our goal is to further increase production and thus improve supply security, as there are currently manyshortages in patient care.”
Strong Sales
Since April 2024, Demecan has achieved strong revenue growth, underscoring the significance and impact of the new cannabis law.
“The significantly increased demand is reflected in our strong sales and shows that we are on the right track. The new cultivation permit not only allows us to meet the growing demand but also enables the sustainable development of our company,” said Dr. Philipp Goebel, managing director in charge of sales,
In April, at the Benzinga Cannabis Capital Conference, Dr. Constantin von der Groeben, a managing director of Demecan, told the crowd “there’s no stepping back” from Germany’s cannabis legalization. Recent changes in the medical marijuana prescription process and hemp laws confirm that the cannabis program in Germany is yet to boom.
Opportunities In Innovation And Research
Von der Groeben also previously told Benzinga 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.
H/T: www.benzinga.com
