Medical cannabis growers encounter challenges and obstacles not only with regards to growing processes, facilities and regulations, but issues also come up when it comes to the general perception of this industry, both from a public and ‘professional’ standpoint. The stigma that pervades cannabis has not gone away yet, and therefore medical cannabis entrepreneurs found themselves struggling when looking for support, either in a financial or a human way.
Although Denmark can be considered one of the leading countries in Europe regarding MMJ programs, the situation can become potentially tricky if one does not know how to navigate the political, legal and cultural landscape. DANCANN is a medical cannabis producer based in Denmark. The company has been aiming at building an innovative and efficient growing facility to comply with Danish standards from the get-go so as not to have any unexpected bad surprise in the future. However, even though they have been taking care of every small detail since the beginning, DANCANN too found itself facing the aforesaid issues. “I still think there is a destructive stigma surrounding cannabis – when I tell people what we do there is always a joke about ‘giving free samples’ or ‘smoking some of it during the lunch break’ – we take these things with a smile, but we think it is important to inform and explain to them what we do – provide vital medicine for thousands of patients in need out there. When we explain the precautions, strict regulations and guidelines that we have chosen to comply to, they understand that this is way more serious than a homegrown plant,” Morten Martinsen, DANCANN COO, explains.
Kicking off one’s project
With regards to the financial industry, Jeppe Krog Rasmussen, DANCANN CEO, had to deal with various institutions before he could obtain the funding necessary to kick off his project. According to him, although the financial industry usually exploits every profitable opportunity, there was still a widespread conservative atmosphere that did not make Jeppe’s job properly ‘easy’. “In a new profession like medical cannabis (seen through Danish glasses) where everything is new, the basic key to investment is to convince its investors that this is the future,” Jeppe points out. “I have had countless meetings with banks and investors. Banks require an unusually high level of security in the financing and, to that end, Danish investors are still extremely conservative in that area. They are still critically placed on the industry as they require great security in their investment, which we cannot guarantee at present - we are, after all, dependent on political legislation and on a pharmaceutical agency (DMA, the Danish Medicines Agency) which is considered to be among the best in the world - while we are involved in an industry where very few actually know the formula for success yet.”
However, as Jeppe remarks, the ‘formula for success’ is not easy to find; in order to get it, it is important to have a steady financial back-up. Jeppe states indeed that “This requires countless funds, and is a longer process, which also often frightens the smaller investors, as they know that this is associated with risk. But as an experienced investor, I can personally evaluate if that risk corresponds with an equal return or failure. Hence, as an investor, you must be aware of this - can you afford it and are you willing to take that chance?”
According to Jeppe, this attitude does not occur outside Denmark and Europe: “In those foreign countries where medical cannabis is already ‘a thing’, potential investors are very much aware of the available opportunities and therefore they go in with great confidence,” Jeppe says. “Denmark is also extremely attractive due to the regulatory advantages on the Danish market in terms of production conditions and exports. This is also one of the main reasons why foreign investors are willing to inject big capitals in cannabis grown in Europe.”
Both Jeppe and Morten acknowledge Canada as one of the leading countries within the cannabis industry, especially with regards to knowledge and expertise. “Obviously, Canada has more experience and know-how in this industry, so everyone is looking at Canada for knowledge and advice. For us, everything is new and may be subject to change from one day to the next. This is very exciting, but can be challenging at times. I also think Canadians, in general, have a more positive and open-minded approach to cannabis as prescribed medicine. In Denmark, it’s a very small group of patients who are allowed to get prescribed cannabis,” Morten observes. “We’re heading in the right direction, but I think we need at least a couple of more years before we can compare ourselves to Canada. These things don’t change overnight.”
"Clinical trials and research are the future to pave the way for medical cannabis"
“We target the cannabis as a medicine and not as a dietary supplement. Clinical enhancement is a long process, but necessary, as it is undoubtedly what we need to support the plant and its properties. Likewise, we want to further integrate ourselves into research and the many components of the plant so that we can target and aim for specific treatment methods versus the particular disease disorder”, says Jeppe Krog Rasmussen, CEO DANCANN. According to him, as the market looks right now, all the focus is mainly on the two largest and most studied active substances, tetrahydro-cannabinol (THC) and cannabidiol (CBD).
“At the moment the lack of clinical trials remains a big issue in the medical cannabis industry - partly because it has been illegal and it is also incredibly costly to carry out such a project. The area for clinical trials is, however, in strong improvement and many new initiatives are being launched regularly.” At present, there are slightly more than 10 studies underway in Denmark (not all clinical) - most of the clinical trials with medical cannabis have only reached Phase 1 so far, Jeppe points out.
“So, it is extremely important for us to be out in the field and participate actively in patient groups' pursuits in order to keep up with developments and contribute to this, and to share knowledge with the public for a better understanding of our profession”, says Jeppe in conclusion.
For more information:
DANCANN
Jeppe Krog Rasmussen
Denmark, DK
Tel: +45 29 63 69 20
[email protected]
dancann.com