Editor’s note* This corporate domination was to be expected but doesn’t make it right. these large corporate entities have the money, resources and ability to absorb losses that we independents do not.
Article originally appeared here: https://www.forbes.com/sites/javierhasse/2020/10/05/73-billion-pharma-company-gets-into-the-cannabis-game/#330570c824a7
One of the largest pharmaceutical companies in Europe, STADA, has signed an exclusive supply agreement with cannabis company MediPharm Labs.
According to information procured exclusively, MediPharm Labs will provide the $7.3 billion market cap pharmaceutical corporate company with medical cannabis products for its distribution in Germany, as well as manufacturing, logistics, and regulatory support,
STADA will be responsible for commercializing the products and providing medical education through its pharmaceutically trained field team.
Shipments are expected to begin early next year. The products may be sold in other E.U. countries beyond Germany in the future, a MediPharm representative said.
A Big Market
With over 83 million inhabitants benefitting from broad access to healthcare services, Germany currently represents roughly 75% of the current E.U. medical cannabis market. In fact, its medical cannabis market is currently valued between €150 million and €175 million, and is expected to grow to €1.5 billion by 2025.
“Working with MediPharm will meet the needs of pharmacists and patients and deliver on STADA’s purpose of caring for people’s health as a trusted partner,” explained STADA CEO Peter Goldschmidt. “This partnership with MediPharm demonstrates STADA’s ambition to be the go-to-partner for Generics, Consumer Health and Specialty Products.” Recommended For You
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MediPharm CEO Pat McCutcheon added this is a breakthrough partnership on many levels.
“Our goal from the beginning was to create specialized, research-driven, pharma-quality capabilities that would put us in a position to earn the trust of sophisticated pharmaceutical companies like STADA. To us, this is validation of our business model and our early commitment to investing in GMP-certified capabilities,” he said.
A key component of this agreement is producing GMP-certified active pharmaceutical ingredients for multiple products to be launched by STADA, McCutcheon continued. “In the pharmaceutical industry, API supply firms enjoy special status and MediPharm Labs has now established its place in this value chain – which is important to our future.
“STADA is deeply committed to setting precedents for quality and consumer trust in Europe’s emerging medical cannabis market. The data we’ve seen from Prohibition Partners suggests that over 60,000 Germans are registered as medical cannabis patients, and this is only the start. There are about 20,000 pharmacies in Germany alone, and in combination with Stada, we’ll be able to bring innovative, pharmaceutical quality cannabis products to all of them,” he ended.