More Canadian LPs Obtain EU GMP Licenses
Several more Canadian firms have obtained EU-GMP licenses over the last month, with Aphria obtaining its license at the end of January, about a year later than expected.
Indeed, GMP certification proved to be a major, expensive and time-consuming hurdle for many Canadian firms, and it has taken a great deal longer to obtain the same than most anticipated. Clearly other issues, including the continued delays on the cultivation bid, have added to the discussion.
However, EU GMP is not the only license required to enter the European market as Aurora learned last fall.
Regardless, what this clearly shows is that Canadian firms are not shying away from the challenge and there will be more floss heading this way soon.
What Is EU GMP?
EU GMP certification is the medical certification required of all medical cannabis entering the market in Germany and across Europe. There is a range of requirements, including labeling that goes along with this.
The certification is not unique to the cannabis industry but rather a pharmaceutical standard that is used globally.
Do Any US Firms Have EU GMP?
GMP certification has not taken root, yet, widely in the United States because of the lack of federal reform and still state-level industry regulations. That said, it is unlikely that this development will skip the United States as the industry finally goes federal, presumably sometime after the next presidential election.
How Do You Start To Get Certified?
The most important step in becoming certified for this kind of market is starting correctly. That means everything from growing organic to construction facilities.
How Do You Justify This Expense To Your Investors?
So far, the idea of raising capital to build facilities to GMP standards has not been a priority in the U.S. However, as the market matures and evolves, this standard will increasingly be in the room. Indeed investors will increasingly ask to see proof or at least plans to get this kind of certification in business plans and prospectuses.
To learn more about certification and other required regulations in the German market, be sure to attend the International Cannabis Business Conference in Berlin this July!