Most of Germany's 20,000 pharmacies will sell Canadian cannabis

It's a move the one we're talking about for some time now. Canadian cannabis companies view Europe the way a vegan views tofu. Canada had already planned to supply German pharmacies in 2016, and two major deals last week finally cemented their status.

The commercial agreements, involving Cronos Group and Tilray, will make the equivalent of tens of millions of dollars’ worth of medical cannabis available to Germany’s 70 million social security beneficiaries.

Cronos has signed an agreement with a network of 12,000 pharmacies to distribute its cannabis flowers under the Peace Naturals brand. Quantities will range from 2,000 to 4,000 kilograms next year, with a value of 25 million euros.

For its part, Tilray has concluded a partnership with a network of 16,000 pharmacies, though no quantities have been specified at this time. The first shipment of medical cannabis extracts has already arrived in Germany.

Both transactions tap into the growth potential of the German market, which currently has no domestic producers.

«We have steadily increased the volume of our cannabis exports to Germany throughout the year, and we still haven't been able to meet demand,» said Mike Gorenstein, CEO of Toronto-based Cronos Group.

«It's hard to quantify just how severe the shortage is. Patients will take whatever is available. It's a race to get our products to them, but our top priority is to ensure that quality remains consistent.».

Both companies currently export medical cannabis from Canada, but will soon be able to use the facilities they are building in Europe, in Portugal for Tilray. Cronos, for its part, is counting on its future production facilities in Israel to supply its German distribution network.

Aurora Cannabis Aurora and Canopy Growth, on the other hand, chose a different strategy to enter the German market: directly acquiring German companies that already held licenses for the import, export, and distribution of medical cannabis (Pedanios for Aurora and MedCann for Canopy).

Germany is currently in the process of Select 10 domestic producers to grow 200 kg per year between 2019 and 2022. Until then, the market will be supplied solely through imports. Medical cannabis prescriptions are covered by insurance for the most serious conditions.