Aleafia Health Inc. is entering the German medical cannabis market via its joint-venture with German pharmaceutical wholesaler Acnos Pharma GmbH, together. The JV entity will purchase Aleafia Health branded cannabis oils for distribution to German pharmacies and for clinical trial usage. Aleafia Health’s wholly-owned subsidiary Emblem Cannabis Corp. is the majority shareholder of the JV with 60 per cent ownership with Acnos owning the remaining 40 per cent.
The Parties have expanded the scope of the previously announced JV formed by Acnos and Emblem, by leveraging the significantly increased access to dried flower and extraction available to the combined entity. The German medical cannabis market has grown rapidly since legalization in 2017, and is projected to produce revenues of $5 billion in 2025 for cannabis producers, according to a report by Bank of Montreal. Market advantages in Germany include significantly higher margins compared to the Canadian market and reimbursement of patient purchasing costs through private and public health insurance, which is almost entirely non-existent in North America.
“We are delighted to soon see the export of our cannabis health and wellness products to the world’s largest medical cannabis market in Germany,” said Aleafia Health Chairman Julian Fantino. “By leaning on our own core competencies of producing high-margin value added products and leveraging the local supply chain expertise of our outstanding partners, we have significantly strengthened our international footprint and done so faster and at a fraction of the cost of an acquisition.”
Acnos is an Aachen & Berlin-based pharmaceutical wholesaler and distribution logistics company which specializes in branded prescription pharmaceuticals, controlled drugs, and clinical trial supply. Through its extensive German network, they have access to 110 distribution centres and 20,000 pharmacies, along with extensive distribution channels across Europe. Acnos co-owner Maximillian Claudel has been appointed Managing Director of the JV. Acnos is currently building a dedicated cannabis product storage and order fulfilment hub within its new headquarters.
“Germany will not just be the largest medical cannabis market in Europe, it will also become the model example for Europe in regard to regulations and quality standards, which is why Acnos welcomes the partnership with Aleafia Health with great excitement,” said Claudel. “The expertise developed in doctor and patient education through its educational platform and clinic network, as well as the outstanding production quality standard provided will be of great advantage to the success of the JV.”