Germany grants licenses for domestic cultivation of medical cannabis

With a deadline twice postponed and two legal suits filed against the Federal Institute for Drugs and Medical Devices (BfArm), the process of awarding medical cannabis cultivation licenses in Germany has not been a sinecure. The licenses should have been granted back in April 2018. Three licenses have just been granted but this result is not yet definitive.

Canadian companies in the lead

The first round licensing had been stopped because of a lawsuit against the process. BfArM then had to review it. During the second round, 79 companies applied. They were competing for 13 contracts to produce 800kg of cannabis over four years for the German government. Among the companies selected were two Canadian giants: Aurora Cannabis and Aphria who both won five lots i.e. a production contract of 4,000 kg each (over four years).

Alongside the Canadian multinationals, Berlin-based start-up Demecan stood out from the crowd. It was awarded the 3 lots of the remaining 800 kg. However, on closer inspection, it becomes clear that the start-up is in a joint venture with the Canadian group Wayland Group. So it seems that Canadian companies have won the day when it comes to the German medical cannabis market.

An uncertain outcome

However, this decision is not final and has not been made official by BfArM because a (second) legal action against the awarding process is still underway. If successful, it could affect these results. Judgment is expected in the coming months, which is why licenses were not expected to be awarded until June. BfArM expects the first crop to be harvested in the first quarter of 2020, but it could also arrive as early as the end of the year.

Home-grown medical cannabis eagerly awaited by patients who are currently finding it very difficult to in cannabis. In the absence of local production, the market is dependent on Canadian and Dutch imports. However, it is unlikely that the planned 10,400 kilograms will be enough to supply German patients for four years.

Especially since demand for medical cannabis continues to grow. Germany will surely have to continue importing cannabis, but domestic cultivation will at least reduce the cost of imports.