The Canadian Producer Scores Another Huge Win.
It’s already been two years already since medical cannabis became legal in Germany. Back in January of 2017, the German parliament passed the “cannabis as medicine” act with unanimous approval, voting in favor of legalizing medical marijuana for German citizens who qualify for a medical prescription. The changes were set to take effect in March of that year.
Since then, however, the medical cannabis industry has been slow to set up shop, and in some cases, access for medical patients has been delayed due to supply shortages. High prices have also presented barriers to low-income patients with qualifying medical conditions.
Germany Sees A Change Of Pace
Fast forward to January of this year – Germany has been actively seeking producers in order to expand the current scope of its medical marijuana market and eliminate current reliance on product coming from the Netherlands and Canada. According to one Reuters interview, at least 79 growers submitted bids to the German Bundesinstitut für Arzneimittel und Medizinprodukte BfArM (Federal Institute for Drugs and Medical Devices) following the recent call for proposals.
The announcement came on Friday last week, when Aurora revealed that it had been awarded a contract to grow five of the thirteen lots of cannabis that the German government is planning to give out at this time. The contract will extend for the next four years and specify a minimum supply requirement of at least 4000 kg, or 4.4 US tons.
The maximum that any grower can be awarded is five lots in total. Two other companies were also selected; Aphria, another Canadian-based medical marijuana producer, also received the maximum possible five lots, while Demecan, a German company, received the remaining three lots.
Aurora Continues To Grow
According to Aurora Cannabis Chief Global Business Development Officer, Neil Belot, “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. Having the highest rated concept is a strong validation of the Aurora Standard cultivation philosophy, as well as of our track record in the delivery of safe and high-quality medical cannabis products to the German system.”
Moreover, said Belot, “We commenced delivering dried cannabis flower from Canada to the German market in 2017, and recently added cannabis extracts to our offerings for German patients. Winning the tender reflects a natural evolution for Aurora, establishing a more prominent local footprint in this important international market with over 82 million people.”
Meanwhile, stock in Aurora Cannabis is rising.
Just last week, Aurora Cannabis stock fell in response to another announcement by the company that the company would be filing “a prospectus to sell $750 million in debt, equity, and other securities over the next 25 months…That made current investors consider the potential for dilution.”
If all goes to plan, greater access to affordable medical cannabis could soon be a reality for patients in Germany as a result of the international partnership.