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PESG Industry Updates: Germany's Cannabis Act and Its Impact on the Medical Cannabis Landscape

By: via Business Wire

The PESG Research has released an industry update following the regulatory shifts in Germany. Germany is expected to pass the Cannabis Act today (Friday), heralding a transformative era for the medical cannabis industry. This legislative milestone, by removing cannabis from the 'narcotics act', is set to significantly ease the prescription process for medical cannabis, heralding profound implications for medical professionals, patients, and companies operating within this space. This report explores the anticipated effects of the reform on medical cannabis companies, with a spotlight on InterCure as an illustrative example of a company poised to benefit. It also briefly touches upon the broader industry anticipation of potential policy announcements from the U.S. before November.

The Cannabis Act: A Paradigm Shift

The passage of the Cannabis Act represents a pivotal shift, primarily by making it substantially easier and more cost-effective for doctors to prescribe medical cannabis. This change is expected to dismantle major barriers that have historically hindered patient access to cannabis-based treatments, setting the stage for a significant expansion of the medical cannabis market in Germany.

Expected Implications for the Medical Cannabis Industry

  • Surge in Demand

    The Act's facilitation of the prescription process is anticipated to lead to a surge in demand for medical cannabis. As doctors gain the ability to prescribe cannabis with fewer bureaucratic hurdles, a broader spectrum of patients could have access to these treatments. This increase in accessibility is expected to drive demand significantly, as more patients consider medical cannabis a viable treatment option.
  • Expansion of the Patient Base

    With the reform, the medical community's acceptance of cannabis is likely to grow, contributing to an expansion of the patient base. The Act's removal of cannabis from the narcotics classification not only changes the legal framework but also shifts the perception of cannabis within the medical field, encouraging more healthcare providers to consider and prescribe cannabis-based treatments.
  • Decrease in Prices

    The anticipated increase in demand and subsequent market expansion could lead to increased supply and competition among medical cannabis companies. This competition is expected to drive prices down, making medical cannabis more affordable for patients. Lower prices, combined with easier access to prescriptions, could further democratize the use of medical cannabis, making it a more accessible option for a wider range of patients.

Spotlight on InterCure, a Medical Cannabis Leader

InterCure, a prominent player in the global cannabis market, is strategically positioned to capitalize on the opportunities presented by Germany's Cannabis Act. With its focus on pharmaceutical-grade medical cannabis products and an established distribution network, InterCure is poised to meet the growing demand in the German market. The company's commitment to quality and patient access aligns with the objectives of the new legislation, positioning InterCure to be a leading beneficiary of the expanded market and regulatory changes.

Back in August, when the company reported H1 2023 financial results InterCure CEO Alex Rabinovitch noted: “We continue to optimize our operations for continued growth supported by our leading position. We are encouraged from the new regulations in Israel and Germany as pharmaceutical cannabis becoming a world standard across Europe and many other territories. We are also keeping an open eye on the U.S. Department of Health and Human Services scientific and medical evaluation, supporting cannabis to be classified as a Schedule III drug by the DEA and the opportunities it may generate to InterCure.”. Indeed, it seems InterCure forsaw this change and has prepared for it.

U.S. Anticipation Intensifies Ahead of Expected Biden Announcement

Following Germany's landmark cannabis reform, the United States finds itself at a pivotal moment, with the cannabis industry and advocates closely watching for potential policy shifts under the Biden administration. The anticipation is particularly charged with expectations that President Biden might announce significant cannabis policy reforms before November.

This expectation is rooted in the hope that the U.S. will mirror Germany's progressive approach, especially in making medical cannabis more accessible and addressing the regulatory disparities that have long plagued the American cannabis landscape. Stakeholders are looking for reforms that could streamline federal regulations, enhance economic growth, and rectify the social injustices stemming from decades of cannabis prohibition.

The prospect of an announcement from President Biden has galvanized the industry, with many seeing it as a potential turning point that could align the U.S. with global trends towards rationalizing cannabis policies. Such a move would not only mark a significant shift in the U.S. but also influence global standards, trade, and cooperation in the cannabis sector, reinforcing the global momentum towards more liberalized cannabis laws.

As November approaches, the sense of anticipation within the U.S. cannabis community is palpable, with stakeholders across the board hoping for policy announcements that could catalyze a new era for cannabis in America and beyond.

Conclusion

Looking ahead, Germany's Cannabis Act marks a significant milestone for the medical cannabis industry, promising to increase demand, expand the patient base, and reduce prices through heightened competition. Companies like InterCure are well-placed to thrive in this new environment, benefiting from the legislative changes that facilitate easier prescription processes. As the industry looks forward, it remains optimistic about similar reforms in other jurisdictions, signaling a global shift towards more accessible and affordable medical cannabis treatments.

Disclaimers: PESG Research is a digital thought brand under The Future Markets Research Tank brand, offering commentary and exploration into the current and future state of the Pharma, BioTech and Sustainability and other industries. Please click here read the full disclaimers for the report and here for the full disclaimers of PESG.

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