The UK’s medical cannabis market is expanding rapidly, with growth estimated at around 10% per month, according to Jon Robson, CEO of Mamedica, a leading medical cannabis clinic.
Despite this impressive growth, access to medical cannabis remains largely confined to illicit channels and a limited private sector, as National Health Service (NHS) prescriptions remain highly restricted.
Barriers To NHS Prescriptions
Since medical marijuana (MMJ) was legalized in the UK in 2018, around 50,000 patients have gained access to these treatments. However, NHS prescriptions are restricted to specific conditions like multiple sclerosis (MS), epilepsy and chemotherapy-induced nausea and vomiting.
According to NICE guidelines, the NHS requires licensed cannabis products to undergo rigorous clinical trials before they can be prescribed, limiting availability of these treatments. Only three licensed cannabis products are available through the NHS, making it difficult for many patients to obtain them.
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Market Growth And Illicit Trade Concerns
The UK’s medical cannabis market is on a rapid upward trajectory, with projections indicating that patient numbers could surpass 300,000 by 2028, up from the current estimate of around 50,000. This expansion, driven by increasing acceptance and private sector involvement, could result in substantial market opportunities for investors. However, it also presents significant challenges, particularly concerning the illicit trade.
One of the key players in the European cannabis market, Curaleaf (OTC:CURLF) is leveraging its strategic expansion in the UK to out price the illegal cannabis trade. According to Juan Martinez, head of Curaleaf International, the UK market has massive potential. Over 2 million British adults are believed to be self-medicating with cannabis, yet only 45,000 are registered MMJ patients. This discrepancy is evidence of an untapped market that could grow significantly if regulatory frameworks and public awareness improve.
In the UK, Curaleaf has introduced vapes and gummies, gathering data from over 30,000 patients to tailor their products to medical needs. This approach allows the company to present compelling evidence to regulators, which is crucial in a market where the NHS offers limited access to cannabis-based treatments.
Despite these advancements, the rapid growth of the legal market may inadvertently be fueling the illicit trade. The National Crime Agency (NCA) reported that illegal cannabis seizures at UK airports have tripled in under a year, with organized criminal gangs exploiting demand by smuggling cannabis into the UK and selling it at a premium.
H/T: finance.yahoo.com
