European Cannabis Developments Germany has re
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Posted On: 06/27/2020 10:30:38 AM
European Cannabis Developments
Germany has received the first importation of cannabis flowers for medicinal purposes from Portugal. Portugal is now the third country to export cannabis products into Germany besides Canada and the Netherlands. In my opinion, the use of Portugal as a source of cannabis suggests a Tilray connection because they have a grow and processing facility in Portugal. Also, EuroMED is building a processing and manufacturing facility in Portugal. I suggest the tiny country of Portugal, a country most people can't even find on a map, may be the key to EuroMED's future.
https://www.labiotech.eu/sponsored/latest-new...e-germany/
By late 2020, Germany will have more suppliers from around the world providing distributors with respective products, including Australia, New Zealand, Malta, Greece, Spain, and Denmark. Licensed producers in these countries are currently cultivating or are in the process of producing cannabis in order to be ready to supply the developing German market.
As a result of these changes, we will likely see some price erosion, because different countries have different costs. The major cost factors of cannabis cultivation are labor, water, and electricity --- these costs differ from country to country. Since production costs are significantly lower in some countries versus others, I suggest we are will likely see a pricing competition in the very near future.
Furthermore, there will definitely be an even greater focus on quality going forward. In my opinion, this is a very good development for the entire industry --- everywhere and in every country.
Any hick-ups on the horizon?
In Germany, there is new legislation, forcing the German Association of Pharmacists and the GKV, the German Association of Health Insurances, to find a way to reduce the 100% surcharge currently levied by pharmacies --- this surcharge is required to be applied by law. Cannabis products in Germany are seen as extemporaneous mixtures and not as ready-made pharmaceuticals. Meeting this legislative requirement means there is a manufacturing step within the pharmacy before a cannabis product can be sold. This step can apply a 100% surcharge on the purchase price of any cannabis products that is sold in Germany.
As a result, medical cannabis products become extremely expensive. A single gram of cannabis flower is currently sold for around 20€, which is significantly higher than in other countries.
Hence, this new legislation is forcing the German Association of Pharacists and the GKV to find a solution aimed at reducing this 100% surcharge significantly. While this problem will not prevent a company from marketing and selling cannabis products, it will cut into revenue.
Kgem
Germany has received the first importation of cannabis flowers for medicinal purposes from Portugal. Portugal is now the third country to export cannabis products into Germany besides Canada and the Netherlands. In my opinion, the use of Portugal as a source of cannabis suggests a Tilray connection because they have a grow and processing facility in Portugal. Also, EuroMED is building a processing and manufacturing facility in Portugal. I suggest the tiny country of Portugal, a country most people can't even find on a map, may be the key to EuroMED's future.
https://www.labiotech.eu/sponsored/latest-new...e-germany/
By late 2020, Germany will have more suppliers from around the world providing distributors with respective products, including Australia, New Zealand, Malta, Greece, Spain, and Denmark. Licensed producers in these countries are currently cultivating or are in the process of producing cannabis in order to be ready to supply the developing German market.
As a result of these changes, we will likely see some price erosion, because different countries have different costs. The major cost factors of cannabis cultivation are labor, water, and electricity --- these costs differ from country to country. Since production costs are significantly lower in some countries versus others, I suggest we are will likely see a pricing competition in the very near future.
Furthermore, there will definitely be an even greater focus on quality going forward. In my opinion, this is a very good development for the entire industry --- everywhere and in every country.
Any hick-ups on the horizon?
In Germany, there is new legislation, forcing the German Association of Pharmacists and the GKV, the German Association of Health Insurances, to find a way to reduce the 100% surcharge currently levied by pharmacies --- this surcharge is required to be applied by law. Cannabis products in Germany are seen as extemporaneous mixtures and not as ready-made pharmaceuticals. Meeting this legislative requirement means there is a manufacturing step within the pharmacy before a cannabis product can be sold. This step can apply a 100% surcharge on the purchase price of any cannabis products that is sold in Germany.
As a result, medical cannabis products become extremely expensive. A single gram of cannabis flower is currently sold for around 20€, which is significantly higher than in other countries.
Hence, this new legislation is forcing the German Association of Pharacists and the GKV to find a solution aimed at reducing this 100% surcharge significantly. While this problem will not prevent a company from marketing and selling cannabis products, it will cut into revenue.
Kgem
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