Greece: first two licenses granted for the production and processing of medical cannabis

About nine months after Parliament has approved the bill allowing for the local production of medical cannabis, the government has just awarded the first two licenses for the production and processing of medical cannabis. The granting of these first two licenses marks the beginning of Greece’s medical cannabis industry. Twelve applications are still pending approval, but according to the Deputy Minister of Economy and Development, the remaining licenses will be awarded by the end of the year.

Licenses

Medical cannabis has been legal in Greece since 2017, but the original law did not regulate its cultivation or processing, so patients had to import their medications from abroad. Law No. 4523/2018, approved in March of this year, establishes the creation and operation of processing facilities for the manufacture and production of finished cannabis-based medications. Under the law, production facilities must be vertically integrated and enclosed. Cannabis cultivation and the production of medications from the plant will take place at the same location within a secure facility.

The first two licenses were approved by a joint decision of the Minister of Health, Mr. Andreas Xanthou, the Deputy Minister of Economy and Development, Mr. Stergios Pitsiorlas, and the Deputy Minister of Rural Development and Food, Mr. Vassilis Kokkalis. They were issued yesterday at a press conference for a term of five years. The two recipients are the companies BIOMECANN and BIOPROCANN, which have invested 9.5 and 12.5 million euros, respectively. The first will be located in Larissa on an 11-acre site, and the second in Corinth on a 46-acre site. They are expected to create 117 jobs. Once the remaining licenses are granted, the total investment is estimated at 185.2 million euros, with an estimated 770 jobs to be created.

For the two licensed companies, funding came from a mix of Greek and international capital. Eirini Pittara, head of the Commercial Licensing Division, noted that there would also be companies with exclusively Greek ownership. The Deputy Minister of Economy emphasized that the licenses had attracted international interest and that the government remained open to the possibility of granting licenses to foreign companies: «In Canada, Israel, and elsewhere, some of the biggest names in pharmaceutical manufacturing have shown interest because they possess expertise and experience.».

The press conference

Cannabis-based medications will be subject to a controlled-use regime, as is the case with opioids, and will be prescribed through the IDIKA social security system. «We have sought to address the issue of the prospects for the production and distribution of pharmaceutical cannabis in Greece with a view to providing patients with easy and affordable access to proven pharmaceutical products that can improve their quality of life,» said Andreas Xanthos, the Minister of Health. However, patients will not initially be reimbursed by insurance funds, and production will primarily be intended for export to revitalize the country’s economy.

Deputy Minister of Economy and Development Stergios Pitsiorlas, for his part, stated: «The interest in international investment in pharmaceutical cannabis highlights our country’s growth prospects.» The goal is to leverage the country’s comparative advantages in cannabis cultivation to attract productive investment in a globally emerging market. Ultimately, the goal is to serve both the domestic market and export markets. According to the deputy minister, the first finished cannabis-based medication produced in Greece is expected to be on the market in about a year and a half.

Meanwhile, the Deputy Minister of Rural Development and Food, Mr. Vassilis Kokkalis, stated: «Today’s announcement of the first licenses to establish facilities for pharmaceutical cannabis proves that Greece is now open to investment. (…) We are sending the message that our country is stable and ready to welcome investment.» In addition to medical cannabis, the government also aims to boost the hemp industry. Mr. Kokkalis announced that the regulatory framework governing industrial cannabis would soon be amended to allow more farmers to grow hemp and thereby increase their income. This will also involve expanding the range of value-added products made from hemp, such as construction materials and food.