Little Green Pharma Ltd (ASX: LGP) has reached a non-exclusive distribution agreement with Balancial Danmark ApS for the sale and distribution of LGP-branded cannabis oil and flower medicines in Denmark.
Managing Director, Fleta Solomon, said the agreement represents the achievement of another milestone in the company’s strategy of growing its market share in key European medicinal cannabis markets.
Ms Solomon said the company’s entry into the Danish market follows Germany, the UK, and France as key European jurisdictions into which LGP has materially progressed the establishment of distribution pathways.
LGP is pleased to announce another agreement for the distribution of LGP products into a prospective EU medicinal cannabis marketplace, and looks forward to collaborating with Balancial to help service our future Danish customers,” Ms Solomon said.
The agreement is non-exclusive and relates to provides for the supply and distribution of LGP Products cannabis medicines in Denmark for a period of five years, commencing on the delivery of the first shipment of Products. LGP will supply and export the Products medicines to Balancial in Denmark on a CIF (Incoterms) delivery basis.
*Denmark medicinal cannabis market *
Following a unanimous vote, in January 2018 Denmark commenced a four-year pilot medicinal cannabis trial. Under the Danish pilot scheme, prescriptions are reimbursed at a rate of 50%, up to 10,000 kroner (US$1,500) per year, with terminally ill patients receiving full reimbursements.
Since introduction, patient count and prescription volumes have been growing rapidly and exceeding expectations.
As at February 2020, the market was expected to have a Total Addressable Market (TAM) of €0.5bn, representing 120,000 people or approximately 2% of the population, at maturity.
Balancial is a Denmark-based company that imports and distributes medical cannabis. Collaborating with top producers, their ambition is to expand their distribution primarily through Denmark and the Nordic region by providing the highest quality medical cannabis products to patients.