Canadian Cannabis Giant Aurora Hits Heavy in Germany
If you are one of those entrepreneurs closely watching the public sector of cannabis finance, you have no doubt heard of Aurora. Aurora Cannabis Inc. is second only to Canopy Growth Corp as one of Canada’s leading producers and distributors of cannabis. But Canopy has some stiff competition, as it would appear that last year, Aurora nearly doubled both the amount of cannabis sold and patients whom they are serving. That drastic uptick in services can be accounted for by the introduction of one single new legal medical marijuana market that Aurora now serves in Europe: Germany.
According to Mark Rendell at the Financial Post:
“Along with quantity, revenue growth came from an increased average price per gram sold, which jumped to $8.36 from $5.96 in the same quarter last year. That increase was thanks in large part to exports to Germany, where medical cannabis prices are significantly higher, through its subsidiary Pedanios GmbH.
“‘The big mover here is Germany, and that’s a huge validation of the acquisition of Pedanios, which cost about $23 million,’ said Cam Battley, Aurora’s chief corporate officer.
“…All told, Aurora more than doubled its German sales between the first and second quarter, selling $2.5 million worth of dried cannabis in German pharmacies in the second quarter. That accounted for fully 20 per cent of the company’s total revenue.”
Pedanios is a pharmaceutical wholesale distribution company which Aurora purchased last year that supplies products directly to German pharmacies. The acquisition, it would seem, is paying off dramatically and quickly. And as has been widely predicted, the introduction of a new patient market in Germany has deeply impacted those working to create medical cannabis access in Europe. One can expect to see more European markets opening and looking to Germany for leadership in how to handle their new policies.
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