Perth-based Little Green Pharma (ASX: LGP) has announced its wholly-owned Danish subsidiary, Little Green Pharma Denmark ApS has entered into an agreement with Cannamedical Pharma GmbH for the bulk supply of their high-THC strain into Germany.
This agreement represents LGP’s fourth contract for the supply of medicinal cannabis into Germany. Together with Four20 Pharma, IIIios Sante and Demecan, it rounds out its wholesaling portfolio with the largest independent, own-brand medicinal cannabis distributor in Germany.
Under the agreement, LGP will exclusively supply the product for sale in Germany, subject to Cannamedical ordering specified minimum quantities every six months.
The deal has a potential value of over $4.5 million over two years. The news comes after the company signed a similar deal in the UK earlier this year.
EU expansion
Final development of the product is expected within the next two to six months, with the first shipment expected between January and June 2023, depending on the final product licencing requirement.
Founded in 2016, Cannamedical is a German-based pharmaceutical company that has licenses to import medicinal cannabis into Germany and hen distribute and export it within the EU.
Presently, Cannamedical has 25% of the German medical cannabis market, with the company enjoying exponential year-over-year growth thanks to its boutique product portfolio, long-term partnerships with innovative manufacturers and the ability to leverage in-house manufacturing infrastructure.
“This sales agreement is the fourth contract in Germany with the largest independent distributors in the country,” Fleta Solomon, managing director of Little Green Pharma, told Startup News.
“Aiming for 10% of the import market, this agreement cements Little Green Pharma’s dominant position in the country and extends the lead of non-Canadian groups supplying high-grade cannabis medicines into Germany and the EU.”
“Something big is happening in Europe. The medicinal cannabis industry is really starting to gain traction and with a population of 515m people (excluding Russia), it’s set to become the world’s largest market expected to be worth $37 billion at maturity. The biggest markets driving this are Germany, France and the UK and Little Green Pharma has a strong foothold in each of these markets and strategically positioned to benefit from their full potential.”
So for a little Aussie company, we have big ambitions to be a global leader in the medicinal cannabis space and make a world of difference for our patients.
The news comes as Little Green Pharma recently won the International Health category at the 2022 WA Export Awards program, making them a finalist at Austrade’s Australian Export Awards later this year. The company was listed on the ASX back in 2020.
