Althea continues its European expansion as it moves into the medicinal cannabis market in Germany.
It's been an exciting day for Althea Group Holdings Limited (ASX:AGH)—an Australian medicinal cannabis company—after it announced the successful execution of its planned entry into the German market.
The move comes as part of Althea's broader push into the European cannabis landscape, with the company already having locked down a distribution agreement with Nimbus Health GmbH.
This is a well-suited match, as Nimbus are a global pharmaceutical wholesaler specialising in the distribution and import of medicinal cannabis products.
The company has signed a Memorandum of Understanding with Nimbus, which will see its products stocked in Germany throughout its pharmacy network.
The regulatory and social acceptance of medicinal cannabis use in Germany is favourable and we are expecting immediate patient growth in what is one of Europe's largest and most affluent countries.Althea CEO, Josh Fegan
However, this isn't just some hand-off distribution deal, as the two companies will also jointly establish yearly sales targets marketing and commercial strategies and develop real world anonymized patient data.
According to the CEO of Althea, Josh Fegan, the company is, "very pleased to have entered into this MOU with Nimbus."
"Working within an existing and successful distribution channel in Germany is a low risk and high reward strategy for us."
"I am looking forward to relocating to London so that I can oversee the next phase of growth in our UK operations and facilitate a timely entry into the German market, during what is an exciting period for Althea and its shareholders," Fegan said.
Under the agreement, Nimbus will sell and distribute Althea's full suite of pharmaceutical grade medicinal cannabis products in Germany using the Althea brand name. The company currently expects—based on projected timelines provided by Germany's Federal Institute for Drugs and Medical Devices and Australia's Office of Drug Control—that the first shipments of Althea's medicinal cannabis products will begin arriving in Germany by early 2020.
As part of its move to enter into the German market, the company will develop a localised version of its Althea Concierge platform, and its Medicinal Education in Cannabinoids (MEDIC) learning portal for the German market.
These tools will help to streamline the prescription process, and also fill a gap in the German market for reliable clinical evidence and efficient patient access. The company believes that by making using of these educational initiatives it will be able to rapidly build market share.
The CEO of Althea, Josh Fegan, will be relocating to London to help drive the scaling up of Althea's UK business—along with coordinating its expansion into Germany—by early 2020, however the company's global headquarters will still remain in Melbourne to main its domestic market leading position.
The founder and CEO of Nimus, Linus Maximilian Weber, stated that his company only "engages with partners following extensive and careful testing to deliver the highest quality products to our patients."
"We are excited to work with a highly reputable partner like Althea and deliver such high-quality products to the pharmacies in our network who are covering approximately 25% of the existing medical cannabis market in Germany," he said.
News of the deal caused stock in Althea to surge 9.20% higher today, which is currently trading at 0.48 a share.
To learn more about Althea Group visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
Disclaimer: past performance is not an indicator of future performance
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