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The past two weeks have been eventful for the cannabis industry. This week Prohibition Partners hosted an online cannabis conference providing an opportunity for different players and various groups of industry stakeholders to connect and share their perspectives. On the regulatory side, the UK has down-scheduled Epidyolex to the lowest level for controlled drugs. UN body conducted another meeting to discuss WHO cannabis recommendations which could lead to freer international trade in the cannabinoid. On the market side, Germany has reported a record figure of insurance-covered reimbursements for medical cannabis in March 2020 and more companies have joined their forces to develop the medical cannabis industry in Europe.
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The Latest News
Regulatory updates
UK down-schedules Epidyolex to the lowest level for controlled drugs. The United Kingdom has down-scheduled Epidyolex to the lowest level of control for drugs, greatly easing restrictions on cannabidiol medicine and reducing administrative processes for companies wanting to supply it. The UK said the new provisions – made through the Misuse of Drugs (Amendment) (England, Wales and Scotland) Regulations 2020 – came into force on June 24. London-based GW Pharmaceuticals, the maker of Epidyolex, said the move exempts the medicine from most controlled-drug requirements. To read more
Switzerland approves temporary production and distribution of recreational cannabis, but broader legalization remains far off. The bill, which still must be debated before being put to a formal vote by the Council of States (although experts expect it will be approved in some form), provided a glimpse into how the recreational market may work in Switzerland. Having said that, in the best-case scenario, distribution is not expected under this program until 2022. Further, after taking into consideration the scientific evidence that will be collected from the program, full adult-use legalization is not expected to be debated until many years down the road. Under the program, only domestic cannabis grown under Switzerland’s framework for organic cannabis would be allowed in the study. As well, the THC cap in the bill (in its current form) is 20%; a proposal to implement a 15% cap was rejected. To read more
United Nations body to meet again this month to discuss WHO cannabis recommendations. A meeting was scheduled for 24-25 June to discuss certain World Health Organization recommendations on cannabis and cannabis-related substances. During the gathering UN member countries are expected to discuss the implications of recommendations regarding extracts and tinctures as well as CBD. The WHO’s CBD recommendation, if ultimately adopted, could lead to freer international trade in the cannabinoid. According to an email the CND Secretariat sent to permanent missions in Vienna, the “first topical meeting of the intersessional considerations of the WHO scheduling recommendations”. To read more
Market updates
Insurance-covered reimbursements for medical cannabis sets record in Germany. Insurance reimbursements for medical cannabis in Germany continue to reach fresh quarterly records, according to new data for the January-March period. In the first quarter of 2020, total reimbursement of cannabis and marijuana-related medicines reached 38.9 million euros ($43.7 million), the German National Association of Statutory Health Insurance Funds reported. That is 6% higher than the final quarter of 2019 and 58% more than the first quarter of 2019. German pharmacies processed 78,233 prescriptions under the statutory program in the first quarter of 2020, up 6% from the previous quarter, indicating that the average cost per prescription remained largely unchanged at almost 500 euros. The previous record came in December 2019 with almost 13 million euros reimbursed. Sales in January and February 2020 were about 12 million euros each month. A possible explanation for the March 2020 spike could be that patients stockpiled medicine due to COVID-19 fears. To read more
Organigram and Canndoc sign international Strategic Agreement. Organigram announced the signing of a multi-year supply agreement with Canndoc Ltd., a GMP medical cannabis producer in Israel. Per the contract, OGI will provide 3,000kg of dried flower to its new partner by December 2021 (with the possibility of shipping an additional 3,000kg at Canndoc’s discretion). We note that this contract represents yet another Canadian licensed producer gaining exposure to the Israeli market and follows the completion of Supreme Cannabis’ first shipment of Truverra product to an Israeli buyer at the end of March 2020. Furthermore, the agreement includes the option for OGI to launch branded medical products with Canndoc in the Israeli and European markets. The export of medical cannabis was approved by the Israeli government last year. To read more
Canamedics and Medcann join forces for the development of medicinal cannabis in Spain. The Barcelona-based company will receive registered cannabis genetics from the Canadian company and may have a plant cultivation license for medical and scientific use. Canamedics becomes the first company in the country to have these genetics certified for use in obtaining their different cultivation licenses. The collaboration between Medcann and Canamedics will allow progress in the development of medicinal cannabis in Spain, while in Europe it is more important. The agreement will also promote the investigation of the different uses and applications of the plant with joint research and development projects with the varieties licensed in the territory. To read more