- MediPharm Labs, a cannabis pharmaceutical company, is positioned to capitalize from Germany’s upcoming legalization of the psychoactive plant
- The company’s German operations include medical supply channels for consumers and businesses supported by two manufacturing facilities, key distribution partners, and 14 product approvals
- MediPharm Labs develops and manufactures pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients and advanced derivative products for the global medical cannabis market
- MediPharm stock has added 6.25 per cent year-over-year, but has lost 97.46 per cent over the past five years
MediPharm Labs (TSX:LABS), a cannabis pharmaceutical company, is positioned to capitalize from Germany’s upcoming legalization of the psychoactive plant.
Germany’s upper house, the Bundesrat, passed legislation to partially legalize cannabis starting April 1, allowing adults to cultivate, possess and store the plant for personal consumption. The law also removes cannabis from Germany’s narcotics list, which should help to facilitate medical access over the near term across physicians, pharmacies and patients. The move makes Germany the third European Union member to legalize cannabis, following Malta and Luxembourg.
As the European Union’s largest economy, Germany has become an instant force in global cannabis, representing more than US$5 billion in additional annual tax revenue, according to a 2021 study by the University of Düsseldorf. This positions MediPharm’s established German operations to benefit from the oncoming ramp up in demand from the country’s more than 70 million adults.
MediPharm Labs’ German operations
Beacon Medical GMBH, a wholly owned MediPharm subsidiary, holds numerous German GMP medical cannabis licenses to import, wholesale and distribute cannabis products. The subsidiary boasts 14 product approvals and distribution via German partners Adrex Pharma, Cansativa and Medical Pharma Resource.
MediPharm is also a provider of turnkey medical cannabis supply, having partnered with STADA – a global health and pharmaceutical company – as its exclusive medical cannabis supplier. MediPharm oversees manufacturing and distribution to STADA pharmacies, helping to maintain the latter’s No. 2 market share in German medical cannabis oil sales.
MediPharm further differentiates its German offerings by specializing in business-to-business supply. Since its 2019 partnership with Adrex Pharma, the company has delivered active pharmaceutical ingredients and end-products to numerous German-based companies, in addition to helping them make their products GMP compliant. MediPharm’s recent launch of its D9 THC isolate or Dronabinol supply business has expanded 2024 sales, opening the company up to new distribution channels.
About MediPharm Labs
MediPharm Labs develops and manufactures pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients and advanced derivative products for the global medical cannabis market.
Its market presence spans Brazil, Australia, Canada and Germany, with foreign drug manufacturing site registration discussions currently ongoing with the U.S. Food and Drug Administration.
The company operates manufacturing sites in Barrie and Napanee, Ontario, each of which holds a Good Manufacturing Practices license permitting export to Germany and around the world.
MediPharm stock (TSX:LABS) last traded at C$0.085 per share. The stock has added 6.25 per cent year-over-year, but has lost 97.46 per cent over the past five years.
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