05.30.2019: Med. cannabis business: Entrepreneurs want to get involved!

The demand for medical cannabis products is still high in Germany.
Since March 2017, doctors have been able to prescribe cannabis as medicine for serious illnesses under certain conditions.
At present (as of May 2019) there should be about 30,000 – 50,000 patients for medical cannabis in Germany, in 1-2 years the number of patients could already “crack” the mark of 100,000 – 200,000 patients.
According to newspaper reports of the last few days, there has been a real hype about medical cannabis, whereby in the meantime not only well-known start-up entrepreneurs have entered the business segment with the med. Cannabis, but also more and more established entrepreneurs, who come from other business fields, which is not surprising, because the market for medical cannabis alone will develop into a large market in Germany, on the one hand because Germany has an ageing population, a well developed health insurance system and the largest coherent market for medical cannabis in Europe could become and thus also for producers from abroad such as Canada as second sales market is very interesting. Analysts expect a market volume of approx. 50 billion euros for Europe alone by 2028.

Dr. Späth & Partner Rechtsanwälte mbB, based in Berlin and Hamburg, who have been providing legal advice in the field of medical cannabis since the amendment of the law in March 2017 and already advise companies from Germany, Canada, Israel, Macedonia, Spain, Greece, Poland, Peru and Uruguay, can confirm that entrepreneurs from other business areas such as real estate, the Internet and telecommunications sectors or even the crypto-currency sector are also toying with entering the medical cannabis business in view of the high growth rates. “Cannabis could thus indeed be the new crypt,” as Dr. Späth & Partner state.

Above all, the market for medical cannabis imports to Germany is regarded as lucrative, after the tender for cultivation in Germany was again concluded, but here too there is uncertainty as to further progress.

In particular, a so-called cultivation licence for cultivation in Germany and a so-called import licence, e.g. in accordance with § 72 AMG, can be considered.

However, interested companies would be well advised to seek legal advice here, as the requirements for a cultivation licence must be met both by the BfArM and by the import licence pursuant to § 72 AMG.

The drug law requirements such as §§ 52 a, 72, 73 AMG must be complied with, as must the drug law requirements according to §§ 3, 5, 7, 11 BtMG.

The required expertise must also be proven.

In the case of imports from abroad, e.g. from Canada, the cross-border regulations must always be observed or agreed, such as UN sales law, international private law, arbitration agreements, etc.,especially with regard to the necessary drafting of contracts.

The producer must have sufficient certification, such as GMP certification, as this is the only way to
import into Germany.

Here, too, interested companies should always clarify the legal situation in individual cases in order
to be on the safe side.

Various companies from Germany and abroad are increasingly looking for partners for cooperation in the areas of production, pharmaceutical sales and financing, as Dr. Späth & Partner can observe.

Interested companies are welcome to contact Dr. Späth & Partner Rechtsanwälte mbB, who already advise various companies from Germany and abroad, we will be happy to advise you.

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