“As this first shipment and first sales to Germany mark Medipharm Labs’ entry into the international pharmaceutical industry within a major European market, we are excited by the opportunities that lie ahead as we employ all of our value-added capabilities,” said Warren Everitt, CEO, Medipharm Labs Australia.
This is a significant milestone for MediPharm for a variety of reasons, many of which may be lucrative to the Company. Did someone say lucrative? Through its Good Manufacturing Practices (GMP) certified facility, MediPharm is able to produce pharmaceutical-quality cannabis oils, concentrates, and derivative products. Keep in mind, only companies that have obtained a GMP certification are able to export cannabis products into the German market. Sure, restrictions are tight but that makes the cannabis oil market ripe for the taking for companies like MediPharm who are GMP certified.
MediPharm expects white label product shipments to its German customers to continue throughout 2021 and beyond. With this in mind, MediPharm now has access to the German market which has been growing exponentially since 2017 when cannabis was permitted for therapeutic use in Germany. Over 83 million people benefit from broad access to healthcare services. Currently, Germany represents 75% of the current European medical cannabis market. Additionally, in 2020, more than 320,000 prescriptions were approved in Germany based on an average from January to September, extrapolated to 12 months.
If that wasn’t convincing enough, lets talk about some dollar signs. According to the Medical Cannabis Network, the medical cannabis market in Germany is valued at between EUR 150 million and EUR 175 million. This is impressive considering only about 10% of Germany’s 20,000 pharmacies sell medical cannabis products. Additionally, it is speculated that the cannabis market could expand to EUR 1.5 billion by 2025 as awareness and education increase.
“I am proud of Medipharm Australia’s progress in licensing and operationalizing this unique GMP platform. This site Australian hub allows us to strengthen our focus of diversified revenue with multiple products in multiple jurisdictions,” commented Keith Strachan, President and Interim Chief Executive Officer.
Under an exclusive agreement with STADA, MediPharm products will be will be branded as CannabiSTADA and made available through STADAPHARM, a subsidiary of STADA. STADA represents the largest German pharmaceuticals company in the cannabis market making this a significant agreement for MediPharm. The Company will act as STADA’s provider for a diverse portfolio of pharmaceutical-quality products.
Upon full launch, STADA and MediPharm have plans to expand their supply to other European countries that permit the use of medical cannabis. MediPharm’s growth will likely reflect the success of the European cannabis market which continues to grow rapidly. Moreover, by cooperating with STADA, the largest German pharmaceuticals company, MediPharm’s growth could be spurted.
MediPharm’s stock price is currently up 3.19 percent and opened at $0.48. The Company’s stock price currently sits at $0.485.