German Judge Delays Cannabis Production Licensing Program, Good News for Canadian Exporters
Germany’s medical cannabis program is one of the top programs in the world. Patients can be prescribed cannabis by their doctors and insurance covers the cost. However, availability can be lacking compared to other markets and the prices remain high because all of the cannabis must be imported from countries like Canada and The Netherlands. Cultivation licenses to grow cannabis in Germany were supposed to be handed out soon, but that process has been delayed, a setback for in-country licensing, but good news for cannabis exporters from countries like Canada.
A judge in the German Higher Regional Court has ruled the tender process for companies seeking licensure to produce and sell medical cannabis in Germany under the country’s cannabis law past last April, is unfair and too rushed.
From The Financial Post:
“The 10 cultivation licences, which were tied to a 6,600 kilogram supply agreement for the Federal Institute for Drugs and Medical Devices running from 2019 to 2022, were expected to be awarded in the coming weeks. They would have been the first licences to grow in Germany since the country legalized medical marijuana last spring.
“On Wednesday, however, a Dusseldorf Higher Regional Court judge halted the tender process, arguing that the timeline given to companies had been too short.
“‘Initial domestic supply was slated for the start of next year; however, we now expect German production will be delayed by 6-12 months,’ wrote Canaccord Genuity Corp. analyst Neil Maruoka in a note to clients, where he reduced his price targets for Aurora, Aphria, MedReleaf and Maricann, each by between $0.25 and $1.
“With a large and aging population covered by socialized medical insurance, Germany is seen by many as the crown jewel of the European medical marijuana market. According to one estimate by U.K.-based cannabis consultancy Prohibition Partners, the German medical market could be worth as much as 10.2 billion euros annually in the coming years.”
While the judge has ruled the current process to be unviable, when or how the process will move forward is still unknown. What is known, however, is that foreign companies, particularly those in Canada, as well as The Netherlands, will step up to fill the void with imports while the availability of medical cannabis grown in Germany will have to be put off bit longer while advocates, entrepreneurs and the government sort out the details. The judge’s decision and where the German cannabis industry goes from here will certainly be a big topic at the upcoming International Cannabis Business Conference in Berlin this April 11-13.
If you want to know more about what’s happening with the German cannabis industry (and the industry around the world), the International Cannabis Business Conference, happening April 11-13 in Berlin, Germany is definitely for you. Tickets are on sale now! If you can’t make it to Berlin this April, then you can attend future ICBCs in Vancouver, Canada, this June, and in Portland, Oregon, USA, this September.