Saxon Cannabis Producer - A new law allows Demecan more cannabis cultivation
The Saxon cannabis producer Demecan is allowed to cultivate unlimited medical Cannabis under the new Cannabis law. With the permit, Demecan can now increase its production capacity by an annual yield of two tons and fully utilize the existing production capacities in Ebersbach, according to the company. A spokesperson stated that the two Canadian companies Aphria RX and Aurora, with production sites in Schleswig-Holstein and Saxony-Anhalt, are also allowed to cultivate medical cannabis. However, Demecan is "the first German company to receive the cultivation license for medical cannabis under the new Cannabis law".
Production restrictions lifted
The three companies won a corresponding tender of the Federal Institute for Drugs and Medical Devices (BfArM) in 2019. However, under the old regulation, only a certain amount of cannabis could be grown. In total, the tender allowed the three companies to produce approximately ten tons over four years. In addition, cannabis grown in Germany could only be sold to pharmacies through the state cannabis agency. With the new law, this intermediary step is to be spared for the companies.
According to Demecan, the permit is "of crucial importance to meet the growing demand for medical cannabis and to initiate a turning point in supply by shifting the focus from imports to more domestic production". "Our goal is to continue increasing production and improve supply security, as unfortunately there are currently many bottlenecks in patient care", said Adrian Fischer, one of the managing directors.
Revenue growth since April 2024
Furthermore, the company announced that it has experienced strong revenue growth since April 2024. "The significantly increased demand is reflected in our good sales figures and shows that we are on the right track", said the sales manager, Philipp Goebel. The new cultivation license allows Demecan not only to meet the growing demand but also to sustainably develop the company.
Since 2017, patients have been able to regularly prescribe cannabis for medical purposes by their doctor. The partial legalization of cannabis in April of that year is said to have significantly revived the medical cannabis market according to Demecan.
- Under the new Cannabis Law, the agriculture sector in Saxony-Anhalt and Schleswig-Holstein, like Demecan in Saxony, will have fewer restrictions on medical Cannabis production.
- The permit issued to Demecan by the Federal Institute for Drugs and Medical Devices (BfArM) allows for Cannabis production beyond the limitations set by the old regulation.
- The spokesperson for Demecan highlighted that their company is the first in Germany to receive a cultivation license for medical Cannabis under the new Cannabis Law, enabling them to expand their Cannabis production in Ebersbach.
- The pharmaceutical industry in Germany can look forward to potential growth in the Cannabis sector as companies like Aphria RX and Aurora, with production sites in Schleswig-Holstein and Saxony-Anhalt, are also allowed to cultivate medical Cannabis.
- With the focus shifting from imports to domestic production, the new Cannabis Law hopes to enhance supply security and alleviate bottlenecks in patient care, as stated by Demecan's managing director Adrian Fischer.
- Following the legalization of cannabis for medical purposes in 2017, the market has been revived, and patients have been able to regularly prescribe Cannabis for their treatment by their doctors in Germany.
