Can the cannabis industry take off in Germany?


Treatments will only be applied if there is no alternative therapy.

In 2017, Angela Merkel's government approves the use of medical cannabis, but legislation to develop the law has not yet begun to be addressed. Treatment with this plant will only be applied if there is no alternative therapy, cannabis being the last option.

Since the beginning of the year 2019, Federal Institute of Medicines and Medical Devices (BfArM) said that in the coming months it will announce the selected producers to start the legal cultivation in the country. Similarly, the institution has indicated that there will be no new legal barriers to cannabis imports, statements that leave the way open to a booming industry.

Production will be further controlled by BfArM

The most positive part of most of the discrepancies involved who or who would be the authorized suppliers, where manufacturers, retailers and pharmacies could stock. On the one hand, production in Germany will be further controlled by BfArM - even if the producers are private companies - but the most positive is that manufacturers, retailers and pharmacies will be able to buy these imported products from authorized companies outside Germany.


The first harvest will take place at the end of the year 2020 and 79 beneficiaries will have to share the production. Tenders will be divided into 13 lots of 200 kg per year.

After a long period of abstinence, there will finally be a first legal cannabis harvest in Germany. However, it will be strictly controlled and regulated.

The permit is only valid for medical hemp

The concessions for 10,4 tons of legal harvest are distributed to companies who have the potential to meet demand in advance. The call for tenders has been in progress since 2017, but there have been delays and legal issues. There are now 79 companies that would like to grow cannabis and have contacted the Federal Institute for Drugs and Medical Devices. Those who are already rubbing their hands and eagerly awaiting their first German legal seal will unfortunately be disappointed: the permit is only valid for so-called medical hemp, which turns directly to the production of drugs. Demand in the health sector is currently rising sharply, which is why the target amount of 6,6 tons originally has been significantly increased. Recently, there has been a strict limitation on the consumer side to about 1000 patients all over Germany, but now doctors are allowed to prescribe freely, if there is a strong medical reason for it.

The German harvest will be supplemented by imports

BfArM intends to award the contract to the first companies at the end of the first semester 2019, the first harvest being scheduled for the end 2020. The whole process is subject to strict government supervision and continuous quality control, as is the case for drugs. The 10,4 tonnes mentioned will be spread over four years and supplemented by imports from the Netherlands and Canada. Cannabis is intended to relieve tumor pain, suppress typical chemo-nausea, and help prevent spasticity in MS. Each of these effects would be a real benefit to people who have suffered and have not yet found an effective cure for their symptoms.

Exponential growth

In recent years, an increasing number of countries have legalized or are in the process of legalizing for medical purposes, including the UK, Greece, Thailand and some US states. Canada and Uruguay have gone further and have completely liberalized the industry.

These data lead to significant growth in the number of companies that legally sell cannabis. In fact, by 2020, these companies will employ 340 000 people in the United States. As if that were not enough, the legal market in the United States is expected to have a turnover of about 47 billion per year over the next decade.

All this translates into the fact that the Marijuana Index - a selective stock exchange that groups 34 US companies in the sector - has increased by 398,6% over the last three years, a growth well above 32% of the S & P 500 or 14,53% of Ibex 35.

In Germany, cannabis is only allowed for patients with prescription pain. For all others, cultivation, sale, possession or consumption are prohibited.

Can the cannabis industry take off in Germany?
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Tags : GermanyLawTherapeutic

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