Earlier this week, Canopy Growth (CGC) announced that it’d become the exclusive supplier of medicinal cannabis to Luxembourg – a country with a population of approximately 600,000.
While Luxembourg’s population might not measure up to say… the 40 million people in California (or Canada), Canopy Growth’s exclusive arrangement is not insignificant.
It’s anticipated that Luxembourg will fully legalize the production and consumption of recreational cannabis in the near future (possibly becoming the first European country to do so).
In 2018, Luxembourg unanimously decriminalized medical cannabis for patients with severe unmet needs — cancer, neurodegenerative, chronic and painful diseases.
Under the new laws, general practitioners and specialized medical professionals (who’ve been specifically trained on cannabis) are authorized to prescribe medical marijuana to eligible patients in Luxembourg.
“We are proud to share news of this decision from the government of Luxembourg, connecting patients to medicine supplied through our European platform,” said Paul Steckler, Co-Managing Director of Europe, Canopy Growth.
“Luxembourg is a country with big ambitions when it comes to medical cannabis, and we are excited to have earned the opportunity to supply this new market.”Canopy Growth will distribute to Luxembourg via its subsidiary Spectrum Therapeutics, which CGC just finished acquiring last week as part of the Beckley Canopy Therapeutics deal.
Spectrum Therapeutics will be the exclusive supplier of medical marijuana to the Grand Duchy of Luxembourg. The contract lasts through December 31, 2021. Luxembourg will receive medical cannabis from Spectrum’s licensed facilities in Denmark, and as well as other global facilities.
An exclusive UK deal too
Spectrum also scored a license to store and distribute cannabis-based medicinal products (CBMPs) in the UK. The UK’s medical program less than one year old.
“We are actively working with regulators to find the best way to ensure we can deliver continuous treatment to patients within the framework,” said Cosmo Feilding Mellen, managing director of Spectrum.
In order to store and distribute CBMPs, Spectrum Therapeutics had to pass rigorous preliminary inspections from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) and Home Office.
Spectrum’s new facility is the first of its kind in the UK, which should reduce patient prescription delivery time, and help solidify the company’s footprint in the UK.
The license enables Spectrum to import CBMPs into the UK directly from Spectrum’s European and global networks, optimizing the supply chain, reducing overhead, and eliminating the need for third-party suppliers.
“Medicinal cannabis has been available in the UK for less than twelve months, and in that time, we have established cost-effective UK infrastructure to meet the needs of patients,” said Mellen.
“We are delighted to have been granted licenses from both the MHRA and Home Office in order to provide a solution to one of the most significant barriers for access in the UK. We are actively working with regulators to find the best way to ensure we can deliver continuous treatment to patients within the framework that exists.”
Canopy Growth has received all required authorizations for importing medical marijuana into Luxembourg. The company completed its first shipment of medicinal cannabis to Luxembourg’s Division de la Pharmacie et des Medicaments.
Canopy Growth Corp. (CGC) was trading at $21.71 per share on Thursday morning, down $0.04 (-0.18%). Year-to-date, CGC has declined N/A%, versus a 12.97% rise in the benchmark S&P 500 index during the same period.
About the Author: Eric Bowler
Eric Bowler is an accomplished journalist providing in-depth insights for more than two decades. Over the past several years his focus has been on the marijuana industry, with a special interest in cannabis growth stocks. His daily coverage of the industry keeps him on top of the key trends with the goal of helping investors make well-informed decisions.