World's Largest Cannabis Company Sets Up Shop in Brazil and Forecasts R$ 60 Million in Investments

By Marcus Bruno

Canopy Growth, a Canadian company that has become the world's largest cannabis producer, introduced its medical division in Brazil to the market on Wednesday (12) in São Paulo. The multinational has just established itself in the capital of São Paulo and estimates that about 1.7 million patients could benefit from medicinal cannabis in Brazil. It plans to invest up to R$ 60 million in education programs and training activities for Brazilian doctors, and this investment could reach R$ 150 million after regulation.

The announcement was made by Dr. Mark Ware, global director of Canopy Growth (center of the photo). In a brief presentation, he provided a historical overview of the medicinal use of cannabis, explained to journalists the endocannabinoid system and its indications for use. "Five years ago, few people took this market seriously. And even today, some still question if there is medicinal value in it. But it is a medicine like any other," emphasized the executive.

The company is known for its color-coded system to categorize medications based on CBD and THC levels - hence the name Spectrum Therapeutics. According to Mark Ware, these medications will help curb the excessive use of opioids in the country and the deaths caused by these substances.

"That's why we need to treat cannabis more seriously. There is no case of cannabis overdose in medical literature. And we are not talking about recreational use."

Brazil is the fourth country in Latin America where Canopy is investing. The multinational began its operations in July 2018 in Colombia, followed by Chile and Peru. Here, the announcement comes a day after Anvisa's meeting that approved a public consultation to regulate the cultivation of marijuana for medicinal and research purposes. When asked about production, cultivation, and importation of cannabis, the director of Spectrum Therapeutics in Brazil, Jaime Ozi (left in the photo), said that everything will depend precisely on this consultation.

"The public consultation is a democratic means, where all of society will be able to express their opinions, and with this, we believe that within the stipulated deadlines, 60 days for consultation, we will be able to direct our strategy, whether it be importation, and even the possibility, yes, of local cultivation."

Investments in Brazil could reach R$ 150 million

The proposal presented by Anvisa on Tuesday (11) includes a series of restrictions on plant cultivation. For example: it cannot be done by individuals or delivered to compounding pharmacies; it will only be indoor cultivation in a 24-hour monitored location without external identification. In addition, access must be through biometric recognition.

Therefore, if Spectrum is unable to cultivate domestically, the backup plan would be to produce in Colombia and import. In the Andean country, Canopy began operations investing R$ 90 million and is expected to end the year with R$ 150 million in investments. This same amount could be applied in Brazil after market regulation.

"In Colombia, we already have an area for cultivation and a beginning of production that should take place next year. The same situation could happen in Brazil. The generation of this new economy that cannabis allows is something that Brazil should not overlook, especially because there are agricultural process fundamentals in which Brazil is a global reference."

Canopy Promises Partnership with Patient Associations

During the meeting in which Anvisa approved the public consultation and presented the project to regulate cannabis cultivation, patient associations strongly criticized the proposal. They claimed that they were the ones who initiated this entire process, but now they have been left out, while the agency is favoring only large companies.

Dr. Wellington Briques, director of medical affairs for Latin America and the Caribbean at Canopy, assures that the Canadian company will be a partner to these entities, not a competitor.

"Patient associations are very important for us to understand the needs of these patients, the needs of the doctor, the patient's journey, what the pains are until they reach the doctor, until they have access to the medication. These associations can even help us design the clinical study."

The executive also praised the federal government's initiative, through Anvisa, to take the first step in regulating medicinal cannabis in Brazil, even in a very conservative political scenario.

"How great that this public consultation for medicinal cannabis is coming out in a political environment that theoretically would not favor us. But it is mature enough to understand that medication is important, that there is demand, that patients have needs. Because there is evidence. The government deserves congratulations for the way it is handling this," he concluded.