Belgium: Fagron to distribute Canadian medical cannabis in 17 countries

The Belgian company Fagron, headquartered in Rotterdam (Netherlands), has entered into a «strategic international distribution agreement» with the Canadian company CanniMed, based in Saskatchewan, to begin by distributing Canadian medical cannabis to Germany's 22,000 pharmacies.

Sales of Cannabis Medical trials in Germany are expected to begin later this year (Q3 2018), pending the necessary certifications, but will then expand to 16 other countries «with a total population of 760 million,» according to the press release.

«This gives us the opportunity to expand quite aggressively into international markets, which is great for job creation, wealth generation, and all the other benefits that will flow back to Saskatchewan,» said Brent Zettl, CEO of Cannimed, in an interview.

Cannimed primarily sells’cannabis oil, with a target of 50 million 60-mL bottles per year for their first plant. The company already exports in South Africa, Australia, or the Cayman Islands.

«We believe that Cannimed has the potential to become a major medical brand in Germany over the long term, where demand for medical cannabis outstrips supply,» explains Rafael Padilla, CEO of Fagron.

Fagron will leverage its network, experience, and credibility to distribute Cannimed's products through pharmacies.

Cannimed is currently fending off a hostile takeover bid by Aurora Cannabis, another Canadian medical cannabis producer that has recently set foot in Denmark. Aurora acquired 2.7% of Cannimed shares after making a buyout offer of 24$ per share, or 550 million $. Cannimed’s share price has been trading above Aurora’s offer for over a week (it is currently at 25$).

Aurora’s acquisition of Cannimed could now represent a tremendous opportunity for Aurora, giving it even greater access to the European market. And Canada is establishing itself ever more firmly as the the world's leading exporter of medical cannabis.