Rapid shifts to the global pattern of ownership and connectedness of CBD and medical cannabis businesses just keep coming.
In Germany, Materia Deutschland GmbH (MD) has made an agreement to distribute medical cannabis extracts made by Eurox Pharma GmbH at Hessen. MD’s parent company, Canada-based Materia, is the subject of a letter of intent (LOI) to purchase, signed by Israeli-founded Kanabo.
Kanabo has responded by saying that its board is “delighted” about the Materia/Eurox agreement.
“Extracts are the fastest growing format in Germany’s medical cannabis market,” says a report from Kanabo, “exhibiting approximately +62% sequential quarterly growth at the beginning of this year [source: GKV-Spitzenverband]. As at the end of 2020, medical cannabis extracts had been distributed across almost one-fifth of public German pharmacies [source: Insight Health Market Report].
“According to the announcement, this agreement will importantly add a new line of cannabis extracts products for Materia Deutschland’s curated portfolio, and help accelerate the expansion of its distribution network across Germany, including new pharmacies that dispense extracts.”
Materia Deutschland received EU-GMP certification in January. The company’s managing director for Germany, Sebastian Blöte, comments on the latest agreement: “We’re proud to partner with a company as innovative as Eurox Pharma in advancing the German market. By pairing their extracts with our distribution expertise, we’re confident this partnership will be a great success for both of us. We know many pharmacies are asking for high quality extracts, so this supports our goal of rapidly broadening our customer base.”
Dr. Bernhard Babel, CEO of Eurox Pharma, adds, “All our Eurox-branded medicinal products are produced in a state-of-the-art German facility and adhere to the highest EU and German standards. Eurox provide the highest quality product whilst maintaining uncompromising safety standards to ensure a stable supply and full control of our entire supply chain—from selecting the plant material to manufacturing and distribution. To that end, we most carefully select our partners, and we are therefore very pleased to announce our distribution partnership with Materia.”
Outside Germany, assets held by Eurox Group are a fully-owned Portuguese subsidiary, Eurox Portugal (currently building its cultivation facility to secure vertical integration and long-term supply independence) and a “significant” minority ownership of Integro Medical Clinics, a London Care Quality Commission-registered medical cannabis clinic.