Demecan: No more BfArM cannabis (article about changing German Cannabis)
NOTE: Demecan is 1 of the 3 Licensed German 'In Country' Growers. Even though the name Demecan is used thru this article, it also means all 3 In Country Growers.
January 24, 2025
Cannabis flowers "made in Germany" have been grown in Germany by Aphria, Aurora and Demecan on behalf of the Federal Institute for Drugs and Medical Devices (BfArM) since 2020 and distributed through the wholesaler Cansativa. But even before legalization, the goods became a slow seller because prices and quantities were predetermined, but imports were no longer more expensive in the end.
Demecan has been demanding the release of its goods for some time. But until now, pharmacies could only order through the cannabis agency, which in turn had commissioned the wholesaler Cansativa exclusively with the logistics.
Now the Dresden-based company can finally take over the distribution of medicinal cannabis flowers type 1 and type 2 itself. "With a price of 4.90 euros per gram, we offer a cost-effective alternative and are 0.90 euros below the BfArM price," says managing director Dr. Philipp Goebel. "Thanks to our extensive cultivation capacities, we can reliably ensure the supply of patients based on the current sales figures. Our aim is to supply high-quality medicinal cannabis 'made in Germany' to German pharmacies across the board."
The cannabis flowers will be available under new PZN from Demecan or from the wholesaler Phoenix:
Medicinal cannabis flowers type 1 Demecan 50 g – PZN 19741348 Medicinal cannabis flowers type 2 Demecan 50g – PZN 19741331
Since Demecan now acts as the manufacturer and no longer the BfArM, the taxation applies according to the auxiliary tariff Annex 10 Part 2 and the billing with the special PZN 06460694 or according to Part 3 and the billing with the special PZN 06460665.
However, Demecan also sells its products directly to end consumers via its own platform Herbery, with Marcel Neumann's Schmargendorfer Pharmacy in Berlin as its partner. Not only Demecan flowers are offered, but also products from other companies such as Four20 or Cannamedical.
NOTE: For some unknown reason, the German government Rolled Out Legalized Medical Cannabis, MedCanG, terribly.
Tilray CFO Carl Merton on Reddit AMA Dec 10, 2024 said "the 1st 6 weeks was a mess".
MedCanG, Medical cannabis was legalized in Germany April 1, 2024. The 'In Country' growers did not receive their new German licenses to grow medical cannabis under this new law until late July, 2024. 1st crops of the new Best Of strains, (no longer BfArM strains), were finally harvested by Aphria Rx late Nov 2024. Aurora announced last week they finally harvested 2 new medical cannabis strains last week, mid January 2025.
Add into that the screw- up receiving the export licenses from Canada into Germany also fouled up.
Tilray's 1st Q 2024, June 1 thru Aug 31, 2024, even though German MedCanG was legalized since April 1, 2024, Tilray / Aphria Rx really didn't add anything to speak of to their financials from the new MedCanG law.
Tilray's 2nd Q 2024, Sept 1 thru Nov 30, 2024 only had approximately 2 weeks of New Best Of strains. Was it all sold in the last 2 weeks of November 2024, Q2? Unlikely.
Carl Merton during the Dec 10th Reddit AMA interview mentioned Aphria Rx increased production by 55%. Based on his remark I would believe Aphria Rx will increase production by 275% in the 1st year, assuming 5 crop rotation. Irwin Simon had predicted German growth would be 3X, 5X... But if Aphria Rx is still finishing and adding Grow Rooms, then 3X to 5X is possible YoY.
Demecan predicted their production doubling in the 1st year of legalization.
Aurora's CEO stated their target from German production was only a 30% increase during 1st year of legalization. Aurora's CFO stated in their last CC they were moving their main supply to be grown from their massive Edmonton airport facility.
As to German MedCanG, I know Aphria Rx went thru a poor 6 months of legalization.
Honestly the 3 In Country growers needed a good 6 month head start to get into new expanded rotations.
The local governments in Germany are In Favor of Made In Germany as Demecan has repeatedly lobbied for.
The City of Halle (Saale) in their model region application statement made last week "In addition to the health and social benefits, participation in such a model project could also strengthen the regional economy, for example through cooperation with the cannabis producer Aurora Cannabis in Leuna". Plus "for controlled cannabis distribution" (existing Local Pharmacies).
German governments are favoring LOCALS, not Foreign Suppliers using USA style Pot Shops.
Win Win for Aphria Rx.
I'm confident we will be seeing good improvements to Aphria Rx production on April 10, 2025 3rd Quarter results and late July 2025 with the 4th Q & Year End results.