Little Green Pharma Ltd (ASX: LGP) has successfully exported the first Australian commercial shipment of locally-grown and GMP-manufactured medicinal cannabis oils into the lucrative German market.
The company has exported an initial 2,400 units of LGP-branded medicinal cannabis oils to German pharmaceutical importer, CC Pharma GmbH, valued at over A$600,000.
Managing Director, Fleta Solomon, said the shipment is anticipated to clear customs in Germany in the next week, following which LGP expects the shipment to be batch-tested and released for sale to the German market.
Based on research by investment bank Bryan Garnier & Co and the Medical Cannabis Network, the German market is currently worth between €150 million and €175 million (A$243 million and A$283 million) and is estimated to grow to €1.5 billion (A$2.4 billion) by 2025.
Supplying CC Pharma, a leading medicinal cannabis distributer in Germany, is a significant achievement and aligns with our commercial strategy to establish LGP as a key exporter of medicinal cannabis oils into Europe,” Ms Solomon said.
“The demand for LGP products signifies not only a vote of confidence in LGP, but also in the ability of Australia’s homegrown medicinal cannabis industry to compete with major international medicinal cannabis companies to supply the German market.
“With our expanded cultivation and manufacturing facility, LGP is well placed to ensure consistent supply to both Australia and offshore markets in the future.”
Ms Solomon said delivery of the shipment completes an extensive 22-month process of negotiation, quality inspection and audit and procurement of German and Australian narcotic licences and permits, which reflects the high regulatory barriers to the export of medicinal cannabis products to the EU. Relatedly, LGP will also be the third global medicinal cannabis manufacturer to deliver full plant extract oils into Germany, behind Tilray and Aurora.
The shipment also represents the achievement of a critical milestone in LGP’s commercial strategy – to establish high-volume distribution channels into more lucrative, higher-margin European and offshore markets.
Germany is the third largest medicinal cannabis market globally behind the United States and Canada, and the largest medicinal cannabis market in Europe. The German market is currently the largest offshore market for Australian medicinal cannabis producers as medicinal cannabis remains federally illegal in the United States and Australian producers are currently unable to export commercial products to Canada due to Health Canada restrictions.