Three companies have been awarded the license to grow medical cannabis for the German market. Aphria, Aurora and Demacan where selected by the German Federal Institute for Drugs and Medical Devices.
13 lots in total
Aphria Germany had won five of the 13 lots. One lot stands for an annual amount of 200 kilograms of cannabis flowers, five lots for one ton. Aurora was also awarded the maximum number of 5 of the 13 lots in the tender over a period of four years with a minimum supply of 4000kg total. Demecan, a Wayland Group's subsidiary, confirmed on Thursday afternoon the contract for three lots.
The tender saw 79 companies participating, with the winners able to establish production in Germany upon the completion of the contract associated with the tender. The selection process was based on the submission of a concept for domestic cannabis production, delivery and pricing. The Federal Institute expects the first harvest for the 4th quarter of 2020. If necessary, additional medical cannabis can be imported.
"We are very pleased to have been awarded the contract for five lots and to be able to build up medicinal-grade cannabis in Germany with our experience," says Aphria-Germany Managing Director Hendrik Knopp. The same goes for Aurora: "We are very proud to have been selected as one of only three companies by the German government, which is a great achievement by our team," said Chief Global Business Development Officer Neil Belot with Aurora. And of course also celebrations took place at Wayland. "This is a watershed moment for our operations in Germany as it validates the early entry by our company into that market. I congratulate Ben and his team on the ground in Germany and our partner Demecan and thank them for their hard work. We hope and expect to see similar successes in other international markets where Wayland has made similar early entries,” stated Wayland Chairman Paul Pathak.
In Germany, Aphria wants to set up its business on two pillars: the company wants to offer three varieties of flowers by cultivating them locally, while other varieties of medicinal cannabis can be imported from Canada and, in the future, also from Denmark. Aphria Germany will grow the cannabis plants in its 8,000 square meter facility in Neumünster, where medical chili, which is meant for heat patches, is still growing.
Aurora's concept focused on the construction of a highly secure, state-of-the-art, EU GMP compliant indoor cultivation facility with flexibility for future growth. The new facility will be located at the industrial park in Leuna, Saxony Anhalt, near Leipzig. The Leuna industrial park provides all required industrial and logistical infrastructure required for the operation of the facility, with a considerable labour market to draw from. The facility is designed to have capacity in excess of the tendered amounts to provide flexibility in meeting future growth.
Wayland will be in the market through its German joint venture Demecan. "From the beginning, the market opportunity for medical cannabis in Germany has been a key part of Wayland’s global growth strategy. We have always prioritized Germany as one of the most exciting medical cannabis markets in the world given its progressive regulations, rapidly expanding patient population, and insurance coverage for over sixty percent (60%) of prescriptions", they state.
The final decision is yet to be fully confirmed: for ten days, the award of each lot can be revoked. Because of these procedural reasons, the Bfarm (Federal Institute for Drugs and Medical Devices), according to a spokesman, currently does not comment on the award of the contracts.
In the future, the agency set up by the Bfarm will sell medical cannabis made in Germany. It will purchase and take possession of the flowers in accordance to United Nations prescriptions on narcotic drugs and sell them to manufacturers of cannabis medicines, wholesalers or pharmacies. The Federal Institute may not achieve profits or surpluses.
The German medical cannabis market offers many possibilities for growers, as the demand is expected to increase.