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Aphria, Aurora and Demecan selected for German medical culture

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Two Canadian companies and a young German company get the contract for the medical cultivation of cannabis.

The decision is not yet final, but three companies have been chosen to cultivate for medical purposes in Germany - the result of a long process of delayed application to deliver products to one of the largest cannabis markets in the world. world.

Supplements for the cultivation of cannabis for medical purposes in Germany have been granted: The German subsidiaries of the Canadian companies Aphria and Aurora and the Berlin company Demecan, founded in 2017, are awarded the contracts for a total of 13 licenses.

Aphria Deutschland confirmed to the newspaper Reuters she had won five of the 13 permits. Aurora Deutschland, which, according to industry information, also received five permits, did not comment at the beginning. Demecan confirmed Thursday afternoon that she had three licenses.

"We are very pleased to have been awarded the contract for five licenses and to be able to produce medical grade cannabis in Germany thanks to our experience," says Hendrik Knopp, managing director of Aphria Germany. Aphria is one of the leading cannabis companies in Canada.

Ongoing project

In Germany, Aphria wants to base its activity on two pillars: It wants to offer three varieties of flowers for local culture, other varieties of medicinal cannabis can be imported from Canada and also provides plants from Denmark. Aphria Deutschland will grow the plants in its 8000 square meter plant in Neumünster.

79 candidates submitted bids as part of the bidding process of the Federal Institute for Drugs and Medical Devices (Bfarm). The offer is for 10400 kilograms of cannabis, spread over four years at the rate of 2600 kilograms each. The Federal Institute expects the first harvest to take place during 4th quarter 2020 and medical cannabis can still be imported if necessary.

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According to Hendrik Knopp, Managing Director of Aphria Deutschland.

The result "is a very important step towards our dual strategy of establishing a high-quality crop in Germany and importing additional flowers and oil from Canada and Denmark to provide the German market with a comprehensive range cannabis base ".

Last year, Demecan received a renewal for an option to purchase land at 95 kilometers (59 miles) north of Berlin, although the proposed use for the land was not disclosed. The company also shares CEOs with another German company, Deutsche Medizinalcannabis GmbH, which signed a supply agreement with Invictus at the end of last year.

Next steps

A "waiting period" of 10 days will now be set before the formal signing of contracts, which will allow unsuccessful bidders to challenge the decision.

"It gives candidates the opportunity to challenge the awarding of a contract before the final contracts have been concluded and protects the BfArM possible declaration of inefficiency, "he added.

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After the contracts are signed, the companies will have a maximum of 18 months to deliver the first harvest. The first year of the four-year contract period will begin with this first harvest.

Imports into Germany will continue to be possible once cannabis produced in the country becomes available.

Pharmacies sold about 2 845 kilograms of medical cannabis in Germany in 2018, more than double the 1 200 kilograms sold in 2017, according to Medical Cannabis in Europe: The Markets & Opportunities, a new report from MJBizDaily.

More than half of the supply was imported from the Netherlands, the rest from Canada.

Price pressure

Not all German patients have insurance covering medical marijuana, and for many who do not, the current retail prices are around 20 euros per gram.

"The availability of medicinal cannabis cultivated in the country at more affordable prices is likely to have a positive impact on patient care in Germany, especially among those who" do not receive reimbursement and take up the care themselves. cost of their treatment ".

Once domestic culture becomes operational, supply problems and high prices could become less of a problem for the German medical cannabis program.

Tags : BusinessAgriculture / GrowGermanyPlantingmedicinal plants