Germans Lead the New Cannabis Market
The industry stands out for its high standards in processes to integrate into the pharmaceutical supply chain, including Good Manufacturing Practices, with elevated and nationwide certifications.
Published on 03/09/2021
Curated and edited by Sechat Conteúdo, with information from High Times (Marguerite Arnold)
The German medicinal cannabis market, which has evolved since 2017 when the law formally changed to require public health insurance to cover medicinal cannabis, has been developing differently from any other that has come before it. Starting with the fact that, in the medical field, those who cultivate, distribute, and sell the plant and its derived medications must be certified at a high, formal level, federally, before they can be part of the pharmaceutical supply chain.
While much attention has been given to who can cultivate cannabis, most people know very little about one of the other essential components to all of this.
The GMP Standards
GMP stands for Good Manufacturing Practices, which is a global standard for production, as well as the additional hops throughout the supply chain. The terms and procedures for qualifying all processes, including drying, processing, extraction, and distribution may seem new in the cannabis market. However, they are routinely used in the broader pharmaceutical industry. These standards are also what must be met for cannabis produced and distributed for medical consumption throughout Europe.
The German standards for EU GMP are also considered the strictest in Europe.
What makes the achievements of all German companies in this space even more remarkable is that they are all startups. They have all paved the way through funding, changing regulations, and meeting the standards of the BfArM. The BfArM is the German federal version of the American FDA that acts as an arbiter and also issues licenses to operate.
However, they have already played and will continue to play an enormous, if not critical, role in the entire discussion about medicinal cannabis. Starting with the fact that if you do not work with them, or with companies like them, you cannot bring your cannabis into the country for legitimate sales. There is no “shortcut” for a producer, for example, to sell directly to a pharmacy.
However, there are companies that are now operating, with fully developed logistics and distribution that meet the high standards of the medical market in Europe.
Here is a brief introduction to three of them.
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Cannamedical, Cologne
Founded in 2016 by David Henn, Cannamedical recently merged with Semdor Pharma Group and PS Pharma, a logistics and storage company, to expand its reach, expertise, and presence. Already with a formidable presence, the company is positioned to compete even with the “big players” - namely, publicly traded Canadian companies including Aurora Cannabis, Canopy Growth, and Tilray/Aphria in a much more competitive distribution landscape. The company is based in Germany's largest state (North Rhine-Westphalia) and currently employs 160 people with an annual revenue of over 65 million euros.
As such, the company has evolved with the market in a way that few others can compare, partly due to its early entry into the market and subsequent positioning. The company sources its own products from various countries, including Canada, Portugal, and Australia.
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Cansativa, Frankfurt
Cansativa was founded in 2017 by a German cardiovascular surgeon and two of his four children - both with significant German business experience in their backgrounds (a lawyer and a corporate consultant, respectively). When asked about the family inspiration that has driven the startup's success thus far, CEO Benedikt Sons replied: “my father has the idea that you should treat people with things that really help. He puts patients first. That’s what drew his attention to medicinal cannabis. Although there was no “evidence” of the scientific kind, he saw that it clearly helped patients.”
The company has also just won the exclusive contract from BfArM, the German equivalent of the FDA and the federal agency responsible for regulating and licensing cannabis, to distribute all cannabis cultivated in Germany. This meant that the company had to create, from scratch, a pharmaceutical-grade distribution and logistics service, which has also been successfully accomplished. “We can track every trail at every step. We distribute throughout Germany overnight. A pharmacy can order medicinal cannabis late at night every day, and it will be delivered the next day,” says Sons.
The company has also partnered with some of the largest publicly traded Canadian companies to be, in Sons' words, “the leading multi-brand importer in Germany.”
Drapalin Pharmaceuticals, Munich
Founded by three childhood friends from Ukraine, Drapalin is one of the few companies in the field to have a female CEO (Lana Korneva). She, along with the Garev brothers, founded the company in 2018.
Since then, Drapalin has begun to carve out a niche for itself in the Bavarian state market. The state is generally known as the “most conservative” German state for a number of reasons. Starting with its annual religious and costumed celebration of Oktoberfest. Beyond beer production, however, the southern German state also has the distinction of having one of the highest numbers of legal cannabis patients in the country. But it also has some of the strictest laws for prosecuting “illegal” use.
The company has also been one of the most innovative in seeking new sources of GMP-quality flowers. Additionally, it is starting to import medicinal cannabis from three continents to Germany.
