The second most populated country in Europe, Germany, legalized recently marijuana. What does this mean?

Even though Germany's cannabis legalization is partial, it significantly impacts the country’s medical marijuana program, and by enabling personal possession, consumption and establishment of non-profit cannabis social clubs it creates first steps toward possible broader reform. To learn more about what this historic move means for the industry in Europe, Benzinga reached out to several industry experts.

Huge Benefits For Medical Marijuana Patients 

Faltischek told Benzinga that "of particular importance to Tilray is the adoption of the new Medical Cannabis Act, MedCanG, which provides de-scheduling of cannabis as a narcotic, which we expect will significantly expand the medical cannabis market in Germany allowing for wider insurance coverage as well as enhanced accessibility to high-quality cannabis for medical patient." 

Faltischek said the company looks forward to exploring the path opened by the German government, promoting improved access to medical marijuana and optimizing care for its patients.

He added that even though the first phase "does not entail the establishment of an industry per se,  it is anticipated that numerous social clubs will emerge, fostering market development in this direction."

He added that legalization destigmatizes cannabis. "Experience from other markets suggests that legalization doesn’t immediately lead to a surge in cannabis consumption. Nonetheless, I believe the more liberal stance on cannabis will foster open dialogue and facilitate education on harm reduction, which includes more healthy consumption methods, like vaporization."

Opportunities For Innovation, Research And Development 

Bickel says to look for an uptick in demand for medical marijuana, especially in the period preceding the establishment of official and fully legal cannabis sources, creating a promising window opportunity for both domestic and international medical marijuana enterprises. 

Demecan’s Von der Groeben noted that in addition to recognizing the medical and economic benefits of cannabis, the reform ushers in opportunities for innovation, research and development. 

"The recent legislative reforms in Germany mark a transformative chapter not only for Demecan but for the entire medical cannabis sector within the country. A crucial aspect of these reforms is the reclassification of cannabis from a narcotic to a prescription (Rx) drug," he said, predicting that the market will show substantial growth in the first few years. 

See Also: This European Country Is Expected To Have Millions Of Medical Marijuana Patients, Say Experts

For Demecan, the new policy reform is important as it allows it to fully utilize its production capabilities, enables it to directly interface with pharmacies, choose and cultivate strains based on market demand and medical efficacy, and independently negotiate price, explained von Der Groeben.

"Freed from the constraints of government off-take agreements only, we can now directly respond to the needs of the market and our patients. This streamlined supply chain is crucial for improving patient outcomes and satisfaction."