Germany: medical cannabis production licenses to be approved in June

Medical cannabis is legal in Germany since March 2017 but patients are still struggling to obtain them. The country's pharmacies and hospitals, which depend on foreign imports for their supplies, are regularly out of stock. Domestic production was due to start in 2019, but the allocation of licenses has been postponed several times. Today, production has still not begun, but BFARM (the government agency in charge of cannabis regulations) has announced that it will select growers next June. The first national harvest should therefore be ready by 2020.

Numerous delays

Originally, the first licenses were scheduled for 2018, but a German company has sued BFARM to protest against excessively short deadlines and a form of favoritism in the selection procedure. In particular, the latter required prior experience in cannabis cultivation, which favored foreign companies based in countries where medical cannabis is already legal. Forced to review its selection process, BFARM has postponed the granting of licenses until early 2019.

Once the new selection process was in place, applications were due to be submitted in October 2018, but have been once again postponed to November and December. 79 candidates applied in December. There were 188 the first time. The award of the licenses was originally scheduled for April, but following a new legal action against BFARM it has been postponed until June. The Düsseldorf Court of Justice is due to rule on the case in April. The outcome of the trial could once again call into question the licensing agreement.

The government is offering 13 contracts for the production of 200 kilos of cannabis per year over a four-year period. In total, domestic production would therefore be equivalent to 10,400 kilos over four years. This quota was originally set at 6,600 kilos, but BFARM saw fit to increase it in response to exploding demand. The new quota is still far from sufficient to meet demand through exclusively local production, and Germany will continue to import part of its cannabis.

Demand explodes

The authors of German legalization had estimated that around 700 patients a year would require medical cannabis. In just 10 months of legalization, more than 13,000 people obtained a prescription. Last November, there were around 40,000 users, and the industry estimates they could reach a million. Medical cannabis is partly reimbursed by the German social security system. The latter disbursed over 50 million euros in the first nine months of 2018, and demand continues to grow.

The current situation is a boon for Canadian and Dutch companies exporting their cannabis to Germany. Between September 2017 and July 2018 they exported around 21,000 kilos of cannabis to Germany. Booming demand, its aging population and government reimbursement of the drug make the German market very attractive. It is considered the goose that lays the golden eggs of the European medical cannabis market, which in turn is considered the most important market in Europe. one of the most attractive in the world. Foreign companies are jostling for access to this lucrative market.

Political tensions

In the meantime, it's German patients in particular who suffer from the situation. «Every day without local cannabis production in Germany is a bad day for the patients who depend on it,» says Dr. Kirsten Kappert-Gonther, MP and health expert for the Greens. Some parties, such as the Liberal Democrats (FDP), condemn the production delays and even accuse the government of «obstructing» the introduction of medical cannabis.

Within the German opposition, there is even talk of completely legalizing cannabis. The FDP, the Greens and the Left are united on this issue. They believe it is the best way to protect consumers and limit the black market. Angela Merkel's ruling party (CDU) remains strongly opposed, while the Social Democrats, who lead the coalition, remain neutral.